In 2022, my country's grain reserves will be relatively sufficient overall, with the grain reserve rate exceeding 80%, far exceeding the safety reserve rate of 17% to 18% proposed by the World Food and Agriculture Organization.

The central reserve mainly regulates the national grain supply and demand and the balance of production and marketing areas, while the local reserve mainly serves the stability of the regional grain market, forming an efficient deployment of "a national game of chess". In this process, the risk management function of the futures market is effectively brought into play.

In the past period of time, the world's important "breadbaskets" such as Russia, Ukraine, Argentina, and India have tightened grain exports, resulting in a tight balance in the global supply of agricultural products. Affected by this, the futures prices of overseas agricultural products such as wheat, soybeans, rice, and oats have risen sharply in the short term.

Faced with the unfavorable factors of increased uncertainty and risks in the global grain industry chain supply chain and sharp rise in grain prices, my country has actively used the grain reserve system to regulate the supply and demand structure, thereby stabilizing grain prices. In this process, the futures derivatives market gives full play to its risk management function and takes practical actions to serve the overall situation of national food security and ensuring supply and stable prices.

The world's important "granary" is in danger:

Since the beginning of this year, the global food supply structure has undergone sudden changes, which has become an important factor catalyzing the rise in food prices.

With its fertile black soil and high grain production, Ukraine and southwestern Russia are known as the "breadbasket of Europe." According to data from the Food and Agriculture Organization of the United Nations, Russia is the world's largest wheat exporter and Ukraine is the world's fifth-largest wheat exporter. The two countries provide about 19% of the world's barley, 14% of wheat and 4% of corn production.

In February this year, the Ukrainian crisis broke out, and Ukrainian grain exports were temporarily interrupted. On July 22, representatives of Turkey, Russia, Ukraine and the United Nations signed the "Black Sea Food Initiative" in Istanbul, which is valid for 120 days. The agreement includes establishing a joint coordination center in Istanbul and ensuring the safety of food transportation. Russia and Ukraine agree that neither party will attack shipping ships. According to a report issued by Turkey, since the initiative was signed, at least 426 grain ships have departed from Ukrainian ports and transported more than 9.7 million tons of agricultural products.

However, the good times did not last long. On November 1, local time, the United Nations Secretariat of the Joint Coordination Center for Black Sea Food Transportation issued a statement stating that no ships would be arranged to move under the "Black Sea Food Initiative" on November 2. This is the first time since the initiative was implemented that the Joint Coordination Center has interrupted vessel movements.

On November 2, local time, the Russian Ministry of Defense stated that the Russian Federation had resumed its participation in the Black Sea port agricultural products export agreement. However, Russia emphasized that Russia reserves the right to withdraw from the "Black Sea Initiative" again, and Ukraine must promise not to use the Black Sea transportation channel for military operations against Russia.

In addition to Europe, important "breadbaskets" in Asia and the Americas have also planned or introduced a series of grain (agricultural product) export restrictions in response to domestic supply shortages, rising prices and extreme weather.