Research On The Pricing Of Chinese Corn Trade

In the second half of twentieth Century, the global corn production and trade volume increased significantly. As the international market is speeding up more and more quickly, the contact between our corn production and international market is becoming increasingly close. After2008, China became an corn importer from an exporter, playing a decisive role in the status of world trade in agricultural products. But not commensurate with the environment is that our country corn, soybean, wheat, and other agricultural commodities import enterprises lack the right to speak on the international market price of agricultural products, to a greater extent, they are the passive acceptance of the transaction price. In the case of lack of pricing power, it is becoming more and more urgent for Chinese corn imports, to provide corresponding countermeasures through the study of volatility of China and the world market price of corn, which requires us to our change idea, examine the corn trade from the perspective of the buyer. However, the existing literature is most on the research of pricing power from the seller’s point of view, ignoring the influence of buyer’s market, this paper introduced the research on import pricing based on summarizing the domestic and oversea research.First, analyzing home and abroad corn market through planting area yield, feed grain production, use, from the price of corn supply and demand situation to understand China’s corn import and export status in the international market. Then, this paper studies the factors influencing the price of corn from supply and demand, corn stocks, climate, substitute price, as well as the use of the global ethanol and other aspects, the international corn prices overall volatility presents international corn prices in1998-2005showed a stable situation.2005began rising. In this paper, through examining the correlation of futures in domestic and foreign markets, finding that CBOT Granger-caused DCE; While the futures and spot prices have the characteristics of unit root, both also have co-integration relationship, which proves that the domestic futures prices have good price discovery function.Then this paper uses the modified SMR model to do empirical analysis of China’s corn import and export market, finding China has no significant influence of corn in the export market, while in the import market, China does not have any market power. This lack of import pricing requires us to formulate effective policies to improve the current situation of corn imports. So at the end of this paper, based on the above analysis, this paper puts forward effective measures to improve Chinese corn imports benefit, providing corresponding theoretical basis and technology support for China’s corn import market.