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The egg futures was officially listed on Dalian Commodity Exchange (DCE) on November 8th,active investors participation and brisk trading have been seen on the first day of its listing, with trading volume on a single side of 175,000 contracts, turnover of RMB 7.12 billion, and open interest of 33,000 contracts, presenting outstanding performance among other products newly-launched this year.
The price of egg futures on that day remained stable with the overall trend of opening high and decreasing afterwards. Both rise and fall have been seen in the six contracts listed that day, with three rising, two falling, and one staying flat. The JD1405 contract has become the dominant contract of the egg futures, presenting the trend of opening high and going down afterwards on the whole day. It opened at RMB 4,050 per 500kg, RMB 50 higher than the benchmark price, and then went down with fluctuation. Bulk selling occurred half an hour before the closing in the afternoon,which sped up the falling of futures price. Till the closing of that day, the JD1405 contract closed at RMB 3,976 per 500kg, which is RMB 24 per 500kg lower than the benchmark price, falling by 0.6%.
Market participant believed that the egg futures is the first husbandry and fresh agricultural product that the supervising authority has specially enhanced the listing threshold and implemented strict supervision and management and, judging from investors’ participation, its performance on the first day of its listing is surprisingly good and its market operation has meet the requirement of “high standard and steady start”. In order to prevent risks and restrain over-speculation, DCE decided that the margin level in the initial period of its listing is 8%. Take futures companies (assume whose margin level is above 10%) as an example, each trading requires the minimum fund of RMB 4,000, which is higher than the listed products in its industry chain like the soybean meal and the corn,it is also the product with the highest margin proportion among the commodity futures listed in recent years. Meanwhile, the commission charge of the egg futures contracts is 0.015% of the contract value, which is relatively high and distinguishes the egg futures from other products. For example, on the first day of the listing of most products, the commission charge of opening and closing a position is 50% off while that of the egg futures presents no discount. This has reflected the management direction of the regulation authority in preventing over-speculation and ensuring steady market operation from the perspective of enhancing trading cost. Under the relatively strict management measures and the relatively high threshold, the brisk trading of the egg futures and the steady operation of the market has shown that investors are optimistic about this product and are reasonable in participation.
