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Dalian Commodity Exchange (DCE) has signed agreements on designated delivery warehouses and designated quality inspection institutions with 8 agriculture-related enterprises and 1 quality inspection institution. These include 3 Corn Group delivery warehouses, 3 No. 1 Soybean delivery warehouses, 1 Soybean Oil delivery warehouse, 1 Egg vehicle-board delivery site and 1 Corn and No. 1 Soybean quality inspection institution.
DCE CEO Wang Fenghai attended the signing ceremony and delivered a speech. He said that DCE had committed itself to serving the real economy over the years. Delivery is a crucial and risk-prone link in futures trading that closely relates to the functioning of the products. The chaos in the preliminary stage of the futures market was mainly due to the problems in delivery. Therefore, DCE had attached high importance to the security of the delivery business and the smoothness of the delivery process and made strict screening and regulation on the designated delivery warehouses to ensure the sound and sustainable development of the exchange.
He required that all designated delivery warehouses should pay great attention to risk prevention and control and well carry out internal management to guarantee product quality and production security. While actively taking part in the futures market, they should observe relevant laws and regulations, preserve market order and give full play to their service function, thus becoming the bond and bridge for the communication between the exchange and the market and guaranteeing the sound and stable development of the futures market together with the exchange.
Officials of the contracting enterprises said that they would strictly conform to the various regulation requirements of DCE on delivery warehouses, do a solid delivery work, and well manage and use the delivery warehouses to satisfy the clients and the exchange and contribute to the development of relevant industries through the delivery services.
In addition, DCE has optimized the delivery system and the delivery warehouse distribution in a bid to better satisfy the delivery demand of the market and strengthen the futures market’s capacity of serving “agriculture, rural areas and rural residents”. In December 2018, DCE revised the relevant rules on corn group delivery to expand the corn futures’ delivery area from the 4 provinces in Northeast China to the production and sales areas in North China and Huanghuai, and it adjusted the benchmark delivery site for No. 1 Soybean and added Mudanjiang, Jiamusi, Qiqihar and Shuangyashan as its delivery regions.
A wholesale market was found at the signing ceremony. It was learnt that it was the newly-added vehicle-board delivery site for Egg. The DCE official said that Egg is the first product setting up a delivery site in the agri-products wholesale market. It marked a key exploration for the transformation and upgrading of the wholesale market and offered a new way for the circulation of agri-products. And the wholesale market will work closely with the exchange to jointly serve the real economy.
