The significance of establishing China's hog futures market

Abstract

With the development and growth of China's agricultural product market, the market's regulation of production, circulation, and consumption has become more and more important, but there have also been some troublesome problems. Mainly due to the ups and downs of market prices, production is rampant in cyclical fluctuations. As far as the hog market is concerned, there is a vicious circle of almost one and a half cycles. The interests of producers and consumers are seriously damaged. In order to protect the interests of producers and consumers, the government has to pay huge sums of money from tight finances every year. In view of this, it is imperative to establish a hog futures market that is in line with China's national conditions. The development of hog futures trading will help stabilize production and consumption, slow down the unreasonable fluctuations in spot prices, and effectively avoid spot price risks. This paper gives a brief introduction to the situation in China's hog market and studies the impact of hog futures on China's hog market. At the end of the article, some suggestions and opinions on the launch of hog futures are put forward.