Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

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Influence and Prospect of Chinese Hog Futures- Live Hog Industry Perspective

Authors
Yi Guo1, *, Jiajun Luo2, Ruining Zhu3, Chengzong Li4
1Yi Guo, Antai College of Economics & Management, Shanghai Jiao Tong University, Shanghai 200030, China
2JiaJun Luo, College of Finance, NanKai University, Tianjin 300350, China
3Ruining Zhu, Vanke Meisha Acadamy, Shenzhen 518000, China
4Chengzong Li (Jason) John. F Kennedy Catholic Preparatory School, Somers, NY state 10589, US
Corresponding Author
Yi Guo
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.102How to use a DOI?
Keywords
hog futures; live hog industry; hog price prediction; pig cycle
Abstract

The Dalian Commodity Exchange opened the hog futures market on 8th Jan, 2021 to smooth out price swings in Chinese pork markets. This paper aims to discuss the influence and prospect of such futures in China. The work introduces technical contract details and analyzes hog futures’ potential benefits to the total supply chain of hog industry. Using VAR model to build interactions between prices of major products along the supply chain, the paper tests the relevance between these product prices and figures out the market anomaly of a too sharply downward live hog prices after issue of the contract through counterfactual prediction. This paper concludes that such inefficiency comes from scattered structure of hog breeding industry and introduces insurance as a tool to solve it. The general approach should give a clear picture of the contract’s prospect in the future.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
978-94-6239-483-4
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.102How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Yi Guo
AU  - Jiajun Luo
AU  - Ruining Zhu
AU  - Chengzong Li
PY  - 2021
DA  - 2021/12/15
TI  - Influence and Prospect of Chinese Hog Futures- Live Hog Industry Perspective
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 617
EP  - 630
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.102
DO  - 10.2991/assehr.k.211209.102
ID  - Guo2021
ER  -