In September, the Dalian Commodity Exchange Pig Futures 2109 contract is about to enter physical delivery. In order to enable market participants to have a more in-depth understanding of the delivery standards, rules and procedures of Dalian Commodity Exchange Pig Futures, "Pig Futures" is specially launched. "Introduction to Delivery Business Series".
Hog futures is my country’s first futures product that uses live animals as the trading and delivery targets. DCE adheres to the principle of “combine spot goods, explore experience, steadily advance, and strictly control risks” and fully refers to spot transactions. method, combined with futures concepts and risk management measures, a pig futures delivery system was designed. In recent years, the scale, standardization and standardization level of my country's pig breeding industry have been continuously improved. Large-scale enterprises generally implement unified management of varieties, feeds, veterinary drugs, technical services and sales, realizing the standardization of the pig breeding process and slaughter quality, and providing The implementation of live delivery of pig futures has laid a good spot foundation.
According to the rules and regulations, pig futures are applicable to futures-to-cash (hereinafter referred to as ECP), daily selective delivery and one-time delivery. In terms of mid-term cash transfer, pig futures only allow non-standard warehouse receipts to be cashed in during the period from the date of listing of the contract to the fourth trading day before the last trading day (inclusive). Daily delivery can be selected through standard warehouse receipt delivery or truck plate delivery. The seller customer who holds a standard warehouse receipt and a one-way selling position in the delivery month can actively apply for standard warehouse receipt delivery, or the seller customer who holds a one-way selling position in the delivery month The seller's customer submits an application for vehicle plate delivery, which is reviewed and approved by the exchange. The exchange will organize the matching of buyers and sellers to complete the delivery within the specified time. It should be noted that only standard warehouse receipt delivery is allowed for one-time delivery.
The subject matter of pig futures is lean pigs, which refers to pig breeds whose main characteristic is the production of lean meat. For details, please refer to the national standard GB/T32759-2016. The delivery unit of the live pig futures contract is 16 tons, and the standard warehouse receipt is the factory standard warehouse receipt. During the delivery process, pig futures fully comply with relevant laws and regulations such as the "Animal Epidemic Prevention Law" and "Hog Origin Quarantine Regulations" to ensure that the delivery process meets national requirements. The delivery quality standards of pig futures mainly include appearance and weight indicators. The weight indicator is divided into two indicators: average weight and individual weight. Corresponding quality premiums and discounts are formulated based on different standards of appearance, average weight and individual weight. In terms of appearance indicators, pig futures standard products should have the appearance of a lean pig, walk naturally, have no hernias, have no pustules or lumps on the body surface, and have no abnormal wheezing characteristics; in terms of weight indicators, the average weight range of pig futures standard products At 100 to 120 kg, individual body weight ranges from 90 to 140 kg. The quality premiums and discounts for live pig futures delivery are mainly designed with reference to live pig spot trading habits, and the price difference in post-slaughter pork grades at the slaughterhouse is taken into consideration. After comprehensive consideration and full investigation, the premiums and discounts for delivery quality standards are finally determined.
In order to ensure that the live pigs for delivery meet the quality requirements, DCE has incorporated the live pig quality standards that require subjective judgment into the management requirements of the delivery warehouse. First, pigs from enterprises must meet a certain scale standard to participate in delivery (the total inventory of pig futures group warehouses should be more than 100,000 heads, the group warehouse's separate inventory columns should be more than 25,000 heads, and the non-group inventory columns should be more than 50,000 heads) Second, the pigs required for delivery are lean commercial pigs. In order to monitor the quality, the exchange will continue to track post-slaughter backfat thickness, meat yield and other indicators. Third, the pigs for delivery are required to be fed for at least 6 hours. In order to reduce losses during transportation; fourth, the delivery warehouse is required to have the ability to detect African swine fever to reduce the risk of the epidemic; in addition, the delivery warehouse also needs to provide information about slaughtering, trade, logistics and other partners to facilitate the buyer to sell or slaughter the pigs on site. .
Currently, pig futures delivery warehouses are located in Henan, Jiangsu, Shandong, Anhui, Hubei, Zhejiang and other places. They are all large-scale breeding farms, and the specific delivery points are set at the slaughtering stage of the breeding farms. The on-site delivery process of physical delivery of pig futures is basically close to that of spot trade. After entering the delivery month, DCE will match the buyer and seller according to the rules. The seller will notify the delivery warehouse to prepare for delivery before matching. The buyer should contact the delivery warehouse in advance according to the rules, determine the transportation destination, and provide the place to issue an animal quarantine certificate. Information is required and on-site delivery is carried out. During on-site delivery, the buyer needs to send a vehicle to the decontamination point in the delivery warehouse to conduct ASF testing, decontamination, isolation, etc. After passing the decontamination, pigs can be loaded and delivered at the designated location.
Under the on-site witness of the quality inspection agency, qualified pigs are transported from the pig house to the pig loading point by the farm for weighing and loading. After completing the loading, the farm will hand over the animal quarantine certificate to the buyer and deliver it on site. Finish. During the weighing process, the buyer can request inspection of the appearance or weight of a single pig.
In order to ensure smooth delivery for the buyer, the official website of Dalian Commodity Exchange provides the contact information of pig traders, logistics companies and slaughtering companies recommended by each delivery warehouse (for details, please log on to the Dalian Commodity Exchange website www.dce.com. cn, check relevant information in the column "Home>Business/Services>Agricultural Product Delivery Business Guidelines"), buyers can also download the "Mobile Delivery App" on the homepage of DCE's official website to provide online feedback on post-slaughter pig quality, delivery services, etc. , and find downstream recipients on the over-the-counter platform provided by the exchange.