Influence of Early Indica Rice Futures on Spot Traders

In recent years, the prices of agricultural products at home and abroad have fluctuated greatly. How to make a business plan, how to grasp the running trend of commodity prices and how to avoid the risk of price fluctuations are problems that many enterprises need to solve. The price fluctuation of agricultural products is indeed greater than before, and it is more difficult for enterprises to make business plans. However, since the early indica rice futures came into being, the company actively participated in futures trading, which provided a good opportunity for enterprises to expand their scale operation through hedging business. In addition, the futures market also provides strong support for enterprises to compete for grain sources, avoid inventory risks and expand market channels. For example, during the acquisition of late rice on 20 10, the market inflation expectation was strong, and the late rice suffered from cold dew wind and reduced production. The company increased the acquisition scale in the early stage of late rice listing. At that time, the high market price really scared enterprises, but by using the futures market to sell and preserve value, the acquisition scale was expanded compared with previous years.

The combination of futures and spot management has brought great help to the stable income of enterprises. There are futures tools to help enterprises master grain sources. In many cases, companies have an advantage over companies that do not participate in futures trading. In terms of enterprise production and planning, the futures market is used to realize the optimal combination. The rice processing trade of enterprises has been able to achieve a balanced distribution in all periods of the year, instead of staying in the previous state of "no food to be processed in the second half of the year and no food to be processed in the first half". By hedging futures market contracts, enterprises not only ensure the supply of raw grain for processing, but also gain pricing space for products.