Study On Security Effect Of Corn Futures Market On Corn Industry In Xinjiang

Futures market is a product of the market economy develops to a certain stage. It is also one of the most powerful tools serving the spot trading in finance market. Corn futures market's unique functions of price trend discovery and hedge enable the corn farmers and relevant enterprises to know in advance the long-term price trend, and formulate the correct business strategy according to their own situation, and lock the risk and profit ahead of time. The developed countries'corn futures market history and Chinese Jilin Province's experience have already proven that the futures market has played a positive role in transferring corn price risk, providing authoritative price guide, and promoting corn circulation.As a part of the fictitious economy, the corn futures market has been serving for the real economy (corn industry). However, as a result of the Xinjiang corn futures market research lag, the corn futures market participation degree is extremely low. As an important component of the fictitious economy, the corn futures market has not displayed its function in safeguarding the healthy development of Xinjiang corn industry. Therefore, strengthening the research of Xinjiang corn futures market, and exploring an effective way of using the corn futures market based on Xinjiang corn industry realities have the vital significance and value in enhancing Xinjiang's comprehensive agricultural production capacity and corn processing industry's competitiveness, and increasing farmers'income.This research is conducted under the guides of the proposal of developing bulk agricultural futures market published in the"Chinese Communist Party Central Committee's some opinions about advancing the new socialist rural construction", and the thought of Premier Wen Jiabao to"actively and steadily develop the futures market"expressed in his government work report at the fourth session of the 10th National Congress. The main line of this research is"to display corn futures market's function and safeguard the healthy development of Xinjiang corn industry". In possession of a great deal of relevant literature, statistical data, research reports, I have conducted a comprehensive investigation and study on Xinjiang corn production, processing and circulation to clarify that the fierce price volatility does Xinjiang corn industry harm. Then, through introducing the United States, Japan and Chinese Jilin Province's successful experience of using the corn futures market to protect the healthy industry development, the research shows that Xinjiang may learn from the above overseas and domestic experiences and use the corn futures market to protect the healthy development of Xinjiang corn industry.On this basis, the latest domestic and foreign research achievements on the futures market are used to expound theoretically the corn futures market's protection function on Xinjiang corn industry. Meanwhile, Co—integration is used to discuss the relationship between the corn futures price and the spot price of Xinjiang corn. Then, according to the actual situation of Xinjiang corn production, processing and circulation, through analyzing the domestic and foreign successful experiences of using corn futures market, the research goes to find the effective ways of using corn futures market in Xinjiang. Finally, proposals are made on how to improve the corn futures market to protect the Xinjiang corn industry development, and this provides the policy basis for the government decision-making.