Corn starch futures will promote the upgrading and development of corn-related industries in China

After a long wait, corn starch has finally been approved for listing, which means that the futures market provides new support for the extension and development of the corn processing industry.

The China Securities Regulatory Commission has approved the listing of corn futures on the Dalian Commodity Exchange [Weibo], and the listing time will be decided by the exchange, a spokesman for the China Securities Regulatory Commission said on the 21st. According to the information disclosed on the website of Dalian Commodity Exchange, the China Securities Regulatory Commission gave a formal reply on the 21st.

At present, the Dalian Commodity Exchange is making active preparations. According to the usual practice, the Dalian Commodity Exchange will issue a draft of the corn starch futures contract and related rules for public comment, and issue the futures contract and related rules, which will be listed on the stock market after being reported to the China Securities Regulatory Commission.

With the development of the times, the industrial value of corn, which used to be used as food rations, has become increasingly prominent, in which corn starch is the main product of corn deep processing. Corn starch is the processing product of corn, is the basic raw material of starch sugar, beer, medicine and many other industries, and occupies an important position in the national economy. China is the second largest producer and consumer of corn starch in the world.

The relevant person in charge of the biochemical Division of Cofco once said that, as an important raw material for many downstream industries, corn starch does not have high requirements for corn quality, even if third-class grain can also produce corn starch. its industrial application value is no different from that of first-class grain, and developing corn starch production plays a positive role in solving the problems such as the difficulty for farmers to sell grain and the conversion of national treasury reserves into enterprise commercial reserves.

In 2013, the output of corn starch in China was about 23.5 million tons, the output value was about 65.8 billion yuan, and the apparent consumption was about 23.4 million tons. But in fact, since the implementation of the corn storage policy in 2008, China's corn starch industry is affected by the high price of raw materials, difficult to obtain raw materials and other constraints, the whole industry is facing a loss.

In addition, affected by the substitution effect in recent years, the impact of imported cassava starch on the corn starch market continues to expand, resulting in large and frequent price fluctuations of corn starch, and strong hedging demand of spot enterprises.

Industry experts believe that carrying out corn starch futures trading will help to improve the futures variety sequence of the corn industry chain, broaden the scope of the futures market to serve the real economy, improve the price formation mechanism, and provide risk aversion tools for relevant enterprises. promote the healthy development of the industry.

At present, a number of large domestic grain and grain processing enterprises are actively preparing for the listing of corn starch futures.