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As people go back to work after the Spring Festival, it has been one month since the No. 1 soybean, No. 2 soybean, soybean meal and soybean oil futures and options (hereinafter referred to as "soybean futures product suite") of Dalian Commodity Exchange (DCE) were formally made available to overseas traders. In the last month, thanks to the support and care of all parties in both domestic and overseas markets, DCE market has operated in a stable and orderly manner, with active participation of overseas clients and positive feedback from all relevant parties.
As the first product in China to open up the entire sector as specified domestic products, the opening-up of soybean futures product suite to overseas traders has attracted much attention from domestic and overseas markets. The statistics show that, as of the end of January, 49 overseas clients from 13 countries and regions including the United Kingdom, Switzerland, the Netherlands, Singapore, Indonesia, Malaysia, and Australia have traded soybean futures product suite. Those clients include Cargill, Louis Dreyfus and other large overseas industrial clients. Some clients even traded contracts of several products.
Cargill has participated in the trading from the first day of opening up soybean futures product suite. Several departments of Cargill have extensively used the products and tools of DCE during their operation, said Mr. Dong Yuxin, head of Cargill's Risk Management in Asia-Pacific region. For example, the Grain and Oil Department has locked in the crush profit through soybean meal and soybean oil futures, while the Risk Management Department has used soybean meal options to reduce the risk of relevant positions.
According to the person in charge of the relevant business of DCE, making soybean products available to overseas traders is a specific measure of the futures market to promote the high-quality and institution-based opening-up. It can accelerate the establishment of a unified domestic market with coordination of futures and spots, and expand the influence of "Chinese quality" and "China’s futures price" of soybean in global market. Given that the soybean futures product suite has been open up to qualified foreign investors (QFIs) since September 2022, the enterprises in global soybean industry can choose appropriate ways to use the "toolbox" of China's futures market for risk management and delicate management according to their own business needs. Going forward, DCE will continue to implement the principle of "One Policy for One Product", expand and strengthen the soybean futures product suite, improve the quality of market operation and bring into full play its functions. In doing so, DCE will better serve the global soybean industry, implement the national grain and oil security strategy and build up the strength of China’s agriculture.
