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To strengthen the corn options training on member units, promote teaching staff construction and guarantee the steady listing and operation of corn options, Dalian Commodity Exchange (DCE) held the training on corn options instructions lately. A total of 100 trainees from 100 units attended the training, including futures companies, risk management subsidiaries of futures companies, spot companies and other financial institutions.
DCE CEO Wang Fenghai said in the speech at the opening ceremony that the listing of corn options will further enrich and improve the agricultural derivatives market system and the corn industry chain risk-avoiding tool system of China and it will provide the market with more targeted and flexible risk management tools and enhance the effectiveness of risk management. Besides, it will further reduce cost, streamline procedures and facilitate the successful development of “insurance + futures”, over-the-counter options and other pilot businesses.
In 2017, the average daily trading volume of DCE corn futures was 520,000 contracts; the average daily open interest was 1.17 million contracts; and nearly 290,000 clients have taken part in corn futures. Judging from industry clients, all large trading enterprises in the corn industry chain, 50% of the feed enterprise groups among Top 30 in China and 75% of the corn starch processing enterprises have made use of corn futures to avoid the price risks in spot trading. Meanwhile, the soybean meal futures has run smoothly since it was listed one year ago and investors have actively taken part in it. Its average daily trading volume was 30,000 contracts and average daily open interest was 150,000 contracts, presenting a good volume-price connection with the target market. All these show that the soybean meal futures has stood the test of the market, which has also accumulated precious experience for the listing of corn options.
