.jpg)
The Central No.1 document just issued this year proposed “strengthening the construction of farm produce futures market, properly increasing new varieties of bulk farm produce futures and building farm produce pricing and trading center with certain influence at home and abroad.” About this proposal the relevant director at DCE said futures market, as an important part of modern market system, plays a bigger role in guiding production, stabilizing markets, and hedging against risks, and farm produce futures markets have good prospects. He also said DCE will actively follow the requirements of the Central No.1 document of the Central Committee of CPC, and accelerate and improve farm produce futures markets and better serve agriculture, farmers and rural areas from the three aspects——innovating and enriching the varieties of farm produce futures, improving the rules on the contracts of launched agricultural product varieties and continuing to deepening and innovating industrial services.
According the director, in recent years, China have given a priority to the work of agriculture, farmers and rural areas, and CSRC suggested making greater efforts to serve agriculture, farmers and rural areas, as well as small and micro enterprises, making farm produce futures market enter a completely new period of development. Over the past few years, DCE has always placed emphasis on building and development of farm produce futures markets. At present, the variety system of farm produce, including corn, soybeans, soybean oil, soybean meal and palm oil, has been formed at Dalian futures market. In 2012 the trading volume of agricultural product futures accounted for 82.36% of the total of DCE, constituting an important variety block of Dalian futures market. In recent years, the agricultural product futures at DCE has a greater impact. A number of farm produce futures, such as corn and soybeans, have become the reference center for domestic market pricing, relevant varieties have increasing international correlation, and the prices of the varieties related to soybeans and palm oil have become the important foundation used by many foreign institutional investors to analyze the global market supply and demand. Some enterprises have made Dalian prices the important reference when making international procurements.
This director also said effective ways of serving agriculture, farmers and rural areas have been found out in domestic farm produce futures markets through the joint effort of many parties, with the development of domestic agricultural product futures market and the play of its functions. But to let the mechanism of market serve the three aspects at a higher level and at a greater scope, it is necessary to take integrated measures to accelerate the development and improvement of farm produce futures market and implement the spirit of the Central No.1 document. In 2013, DCE will seize the opportunity of implementing the spirit of the Central No.1 document, to further accelerate the development and improvement of agricultural product futures market, to build a center for farm produce pricing and trading which has a certain impact at home and abroad so as to better serve agriculture, farmers and rural areas, from the three aspects of variety innovation, contracts and improvement of rules and systems.
In terms of variety innovation, DCE will develop and launch more varieties of farm produce and improve the system of farm produce varieties and expand the coverage of services in 2013. Currently, DCE is actively promoting the launch and trading of eggs, lumber and other futures, with eggs futures waiting for approval and lumber futures having been set up as a project. In addition, DCE is researching into and designing live pigs and broilers, as well as means of agricultural production like fertilizers. It is also actively studying and launching the instruments including agricultural product options and indexes, and expanding and deepening the services of futures market provided for agricultural industry.
In terms of the improvement of contracts, rules and systems, DCE will improve existing varieties and enhance its level of serving agricultural industry and real economy, by strengthening the maintenance of launched varieties of farm produce. It will do further research into the amendments to other launched contracts including corn, based on the modification and improvement of the contract rules of soybeans and palm oil. And DCE will consider setting up delivery warehouses in growing areas for some agricultural products like soybeans, and make further improvement and amendments to existing delivery system by taking into account the intentions of customers and enhancing delivery efficiency and reducing delivery costs when making deliveries.
In terms of market and industry services, DCE will further deepen the market service project for “thousands of villages and households”. It will enlarge the scope of market training, information service and the extension of market utilization mode, and make services more relevant and effective, by strengthening its cooperation with governments at all levels, farmers’ cooperatives and other relevant institutions, for instance, by participating in the activity of “training of practical rural talents” organized by the Ministry of Agriculture. DCE will further promote the market service project for “thousands of factories and enterprises” as well. It will, through industrial conference, futures college and other platforms, intensify training in the industrial chain of existing farm produce, extend the typical cases of futures utilization and make enterprises get more involved in market and utilize market to do trading.
