.jpg)
Dalian Commodity Exchange (DCE) holds the 2019 Agricultural Products Delivery Summing-up Meeting on June 14. The meeting summarizes the agricultural products delivery work in 2018, introduces the next plan and commends the outstanding agricultural products delivery warehouses and staffs in 2018. DCE CEO Wang Fenghai delivers a speech. Nearly 300 representatives from agricultural products delivery warehouses and quality inspection institutions attend the meeting.
Paying high attention to the delivery work to ensure smooth market operation
Wang says in the speech that agri-product futures varieties occupy a critical place on DCE. DCE has always held fast to the fundamental purpose of serving the “agriculture, rural areas and peasants” and the real economy. With regard to agricultural products, DCE has listed 10 futures varieties and 2 options varieties, and it has 175 delivery warehouses and 10 quality inspection institutions. In 2018, the trading volume and average daily open interest of the agricultural products of DCE was 490 million contracts and 3.81 million contracts respectively, taking up 54% and 58% respectively in the domestic agricultural futures products market. Delivery, a link between the futures market and the spot market, is a key part in futures trading, which has a direct bearing on the steady operation and functioning of the futures market. DCE has always attached great importance to the delivery work, and it hopes to maintain the stable development of the futures market together with all warehouses and inspection institutions.
In 2018, the delivery volume of agricultural products of DCE was 217,000 contracts, up by 25% year-on-year, and the delivery turnover exceeded RMB 7 billion, presenting a stable operation on the whole. The number of delivery warehouses has kept increasing, and the involved areas have kept expanding to 17 provinces, cities and autonomous regions, with their quality further improved and their anti-risk capability gradually enhanced.
To better standardize the management on delivery warehouses, DCE has optimized and detailed the management rules related to delivery warehouses, adopted the “lowliest place elimination series” and canceled the delivery warehouses that have serious violations or fail in annual examination according to relevant rules. In addition, DCE has intensified the training on delivery warehouses and quality inspection institutions.
In recent years, DCE has made numerous innovation points in the contract and delivery systems. With regard to soybean meal, to adapt to the change of trade pattern in spot trading and the corporate need, DCE has newly added the dynamic premium and discounts system for soybean oil futures contracts, thus relieving the unstable relationship of soybean oil spread between the benchmark delivery sites in South China and those in East China and solving the difficulty of setting the premium and discount standard. As for corn, DCE has revised the group delivery rules, which has facilitated the temporary reserve system reform. Up till now, DCE has 11 group delivery warehouses, whose delivery service spreads from northeastern producing areas, to coastal ports, and to sales areas including Jiangsu. In terms of soybean, DCE has optimized the No. 1 soybean contract and changed its benchmark sites to serve the revitalization of the soybean industry, and it has revised the No. 2 soybean contract system, fully activating the contracts that have been in “sleep” for a dozen years. As for egg, DCE has remarkably enhanced the contract liquidity and the participation degree of industry clients through innovation in daily delivery and vehicle-board delivery systems, making it the first agricultural product futures contract with continuous activeness.
A DCE official makes an introduction on the next plan. First, DCE will continue to adapt to market development and optimize the distribution of delivery warehouses to bring convenience for the delivery of clients. Second, it will continue to optimize the delivery system, enhance the operation quality of its products, and keep innovating and optimizing relevant rules and systems to enhance the delivery efficiency. Third, it will take various measures simultaneously, strengthen the efforts on training, and improve the professional skills of relevant staffs, thus enhancing the delivery satisfaction degree of the market. In addition, DCE will intensify the regulation on designated delivery warehouses and inspect the delivery warehouses from multiple aspects, thus ensuring their overall service level.
45 Warehouses Commended for Excellent Services and Quality
DCE commends 45 warehouses and 42 delivery staffs with outstanding performance at the meeting. They are chosen according to the comprehensive assessment on all designated delivery warehouses for agricultural products in terms of the 2018 annual review, site inspection, delivery volume ranking and client complaints.
A DCE official stresses that all delivery warehouses should unify their thinking and recognize the importance of futures delivery business, and they should observe the rules and regulations of DCE and strengthen the sense of responsibility, thus serving all member entities, the clients, the industry and the futures market. Besides, they should preserve their moral integrity, intensify internal management, improve relevant systems and mechanisms, strengthen supervision responsibility and provide good delivery service from the perspective of maintaining the stability and safety of the market.
