Influence and Prospect of Chinese Hog Futures- Live Hog Industry Perspective
- 10.2991/assehr.k.211209.102How to use a DOI?
- hog futures; live hog industry; hog price prediction; pig cycle
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.
- © 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
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 -