Prices of pork products have risen sharply nationwide due to factors such as a seasonal rebound in consumption and blocked circulation of frozen products. With the official listing of primal pig futures on the Dalian Commodity Exchange, many people are worried that the futures will magnify the price fluctuations of pork. In this regard, experts said that the main factor determining the price of pork is supply and demand. At present, China's demand for pork is relatively stable. Although supply is still tight, there is limited room for future price increases. China's first real-time delivery of futures varieties Sheng pig futures in the Dalian Commodity Exchange officially listed for trading. The impact of raw hog futures on domestic pork-like prices and the hog cycle has become the focus of attention. Will futures affect the direction of hog prices? What impact will it have on the whole industry? On related hot topics, the Economic Daily News reporter interviewed industry experts and scholars.?

"The main factor that determines the price of pigs Meat is supply and demand, the listing of raw pig futures will not directly affect the fundamentals of pig supply and demand, at present, China's demand for pork is relatively stable, but the supply will be due to the new epidemic of coronary pneumonia, breeding profits and policy orientation and other factors and changes. Change the fundamentals of domestic pork category supply and demand and ultimately determine the direction of pork category prices." Chen Yanjun said he is a senior expert in the futures market and served as a senior analyst for many years in the Zhengzhou grain wholesale market.?

So what are the current domestic supplies and prices of pork? "China's pig production has recovered substantially, but overall supply remains tight." Zhu Zengyong, associate researcher at the Chinese Academy of Agricultural Sciences, Beijing College of Animal Husbandry and Veterinary Medicine, said in an interview with reporters. The impact of hog futures on the hog cycle: the fundamentals of supply and demand determine the hog cycle "Although some people are concerned that futures will amplify the price volatility of pork-like prices and disrupt the hog cycle, the hog cycle will be disturbed. k0] is China's largest agricultural product by market capitalization, with a market size of more than one trillion yuan. -There are very limited varieties of dollar futures in the market." Chen Yanjun believes that the relevant companies can focus on getting bigger and stronger. There is no need to worry about the listing and trading of Sheng hog futures. "Although the listing of Sheng hog futures will not directly affect the listing and trading of Sheng (k0) futures. domestic production fundamentals of swine supply and demand, hedging futures are highly valuable in the industry chain of hedging, slaughtering and trading. The company provides a channel to hedge price risk and maintain and increase value." Chen Yanjun said.?

The so-called futures hedging refers to operators using futures contracts as temporary substitutes for buying and selling commodities in the spot market in the future. They conduct buying and selling operations and lock in prices in advance to avoid the risk of large fluctuations in market prices. Birth pig reproduction cycle is relatively long. It usually takes about 10 months to grow from a pregnant pig to a baby pig. During the long breeding cycle, diseases, supply and demand, feed prices and many other aspects are full of uncertainty, resulting in the future production of the price of pigs may greatly deviate from expectations. Using the tool of Sheng hog futures, when the price of Sheng hog futures is moderate, the breeding company can pre-sell the same amount of Sheng hog futures in the futures market to lock in profits in advance. Meanwhile, primal pig futures can also help the slaughtering and processing sectors to buy in advance in order to prevent the price of primal pigs from rising irrationally in the future. Reporters learned from the Dalian Commodity Exchange, Woodland, Wen's, Zhengbang Technology, New Hope, Zhengda and other leading domestic pig breeding companies will all enter the market to participate in the pig futures delivery business.