Now, pig prices are once again in a downturn. Although the previous market has improved, due to poor pork consumption, farmers have accelerated their slaughter and pig prices have fallen under pressure. According to the market data of August 19, the average price of live pigs in China is 7.44 yuan/kg, which is 59% lower than the high price in the year. As the delivery month approaches, the main contract price of live pig futures is also lowered. At present, the lowest price of the main contract LH2 109 has fallen below 15700 yuan/ton, hitting a new record low.

1. What is futures?

1. Futures and spot are completely different. Spot is actually a tradable commodity. Futures are not commodities, but standardized tradable contracts based on specific commodities such as cotton, soybeans and oil and financial assets such as stocks and bonds. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments.

2. The delivery date of futures can be one week later, one month later, three months later or even one year later.

A contract or agreement to buy or sell futures is called a futures contract. The place where futures are traded is called the futures market. Investors can invest or speculate in futures.

Second, the development of futures.

1. The futures market first appeared in Europe. As early as in ancient Greece and Rome, there were central trading places, bulk barter transactions and trading activities with the nature of futures trading. The original futures trading was developed from spot forward trading. The first modern futures exchange was established in Chicago in 1848, and the institute established a standard contract model in 1865. In 1990s, China Modern Futures Exchange was born. There are four futures exchanges in China: Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange and China Financial Futures Exchange. The price changes of listed futures have a far-reaching impact on related industries at home and abroad.

In the initial spot forward transaction, both parties verbally promised to deliver a certain amount of goods at a certain time. Later, with the expansion of the scope of transactions, oral promises were gradually replaced by sales contracts. This kind of contract behavior is becoming more and more complicated, and it needs intermediary guarantee to supervise the timely delivery and payment of buyers and sellers. Thus, 157 1 The Royal Exchange, the world's first commodity forward contract exchange opened in London, appeared. In order to adapt to the continuous development of commodity economy, improve transportation and storage conditions, and provide information for members, 82 businessmen initiated and organized the Chicago Board of Trade (CBOT)65438 to 0848. 185 1, Chicago Board of Trade launches forward contracts; 1865, Chicago Grain Exchange introduced a standardized agreement called "futures contract" to replace the original forward contract. This standardized contract allows the contract to change hands and gradually improve the deposit system. Therefore, a futures market specializing in standardized contract transactions has been formed, and futures have become an investment and financial management tool for investors. 1882, the exchange allows hedging to be exempted from performance responsibility, which increases the liquidity of futures trading.