MySheen

Agricultural futures have a bright future.

Published: 2024-09-16 Author: mysheen
Last Updated: 2024/09/16, The government is working hard for the market-oriented reform of agricultural products, which means that China's agricultural futures have a bright future. For a long time, it has been an unavoidable reality for farmers to rely on heaven for a living, and agricultural futures always seem to be "the last kilometer" behind the rural areas, farmers.

The government is working hard for the market-oriented reform of agricultural products, which means that China's agricultural futures have a bright future.

For a long time, it has been an unavoidable reality for farmers to rely on heaven for food, and the futures of agricultural products always seem to be "the last kilometer" from the countryside. Farmers seem to be close, but in fact they are still far away. They have no professional knowledge and no awareness of risk. Most of them regard futures as "scourges."

In fact, the No. 1 document of the CPC Central Committee has repeatedly proposed to increase the intensity of reform and innovation to speed up agricultural modernization, and to innovate the circulation mode of agricultural products, develop futures trading of agricultural products, and develop new varieties of futures trading of agricultural products.

According to the No. 1 document of the Central Committee in 2015, the cost of domestic agricultural production is rising rapidly, and the prices of major agricultural products are generally higher than those in the international market. How to innovate agricultural support and protection policies and improve agricultural competitiveness under the "double squeeze" is a major test that must be faced.

China has a shortage of agricultural resources, excessive development and serious pollution. How to ensure the effective supply, quality and safety of agricultural products and improve the ability of agricultural sustainable development under the hard constraints of resources and environment is a major challenge that must be addressed. The flow of urban and rural resource elements is accelerated and the interaction between urban and rural areas is strengthened. how to speed up the pace of new rural construction and achieve common prosperity in urban and rural areas under the background of the in-depth development of urbanization is a major problem that must be solved.

At present, China has listed more than a dozen agricultural futures varieties, such as cotton, soybeans, eggs, corn and so on. Public data show that Dalian Commodity Exchange and Zhengzhou Commodity Exchange are strengthening the research and development of new varieties of agricultural futures, and cotton yarn, grain, oil and oil, animal husbandry products, forest products, and seafood are all under research and preparation, and agricultural options are also being traded as soon as possible.

The development of agricultural futures is very important to the development of agriculture. On the one hand, "garlic is ruthless" and "beans you play" often make farmers encounter a price roller coaster, and the futures market is conducive to transferring risks and stabilizing price fluctuations. On the other hand, at present, great efforts have been made to develop modern agriculture and large-scale agriculture, and some agricultural operators on a large scale have the demand for price risk aversion, while futures provide a good risk aversion tool.

In recent years, due to many changes in the global economy and frequent weather disasters and other reasons, the fluctuation of the international agricultural product market has intensified. In this context, China objectively needs a sound system and functional agricultural futures market.

At present, the government is leading the reform of agricultural prices, which may bring some fluctuations in agricultural prices, and there are risks if there are fluctuations. Therefore, to actively promote the development of new varieties of agricultural futures and encourage agricultural production and management enterprises to enter the futures market to carry out hedging business is to prepare in advance for the possible increase in the risk of agricultural product price fluctuations in the future.

In the process of new urbanization and agricultural modernization in the future, it is essential to list more agricultural futures, refine and deepen the existing agricultural futures, and give full play to the risk aversion function of the agricultural futures market. The experience of foreign agricultural products futures serving the real economy and the examples of some Chinese agricultural enterprises making effective use of the futures market should be promoted throughout the country.

However, in reality, if futures really want to serve "agriculture, rural areas and farmers", there are still some problems, such as investor education, such as the tax revenue of farmers' cooperatives and the shortage of rural futures talents, which all limit the function of futures.

Obviously, China's agricultural futures are still in the stage of development, and compared with developed countries, there are still some problems, such as low coverage of futures varieties, unreasonable investment structure and so on. For this reason, it is necessary to further expand the depth and breadth of futures market services for agriculture, rural areas and farmers.

Industry insiders suggest that, first of all, we should improve the variety structure of the agricultural futures market. Secondly, we should consolidate the spot foundation of the futures market and start the construction of a number of state-level key large wholesale markets in major agricultural products producing areas throughout the country, so as to promote the development of product circulation and service industry by tamping the market foundation. At the same time, it also creates conditions for further improving the spot basis of agricultural products futures trading. Third, strengthen the cultivation of participants in the futures market and continue to optimize the structure of investors.

 
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