Research On Influencing Factors Of Soybean Price Fluctuations And Countermeasures

With the development of China’s economy, our residents’ physicalstructure changes constantly. The proportion of soy products in daily consumption isalso growing, and there are more industries associated with soybean. China’s soybeanmarket is becoming more and more closely linked with the international soybean market.There are much more factors affecting China’s soybean prices. China’s soybean pricefluctuates much more frequently. These seriously affect the stability of the industriesassociated with soybean. Therefore, under the background that sharp fluctuations insoybean prices, research on influencing factors of China’s soybean price volatility andproposing the corresponding countermeasures and suggestions will have importantpractical significance.Firstly, this paper analysis the general characteristics of the relationship betweensupply and demand of China’s soybean market, and the production and pricefluctuations of Soybean. This will find that the problems of China’s soybean industry aswell as the law of China’s soybean price volatility. Secondly, this paper analysis theinfluencing factors of China’s soybean price volatility with the internal conductionmechanism and external shocks theory. These factors include soybean production cycle,the distribution mechanism of the soybean industry chain interests, financial factors,national macroeconomic policies and international market factors and other factors.The conclusions drawn from the research found that there is important relationshipbetween soybean price fluctuations and the import and export of soybean. Continuoussurge in domestic demand and stagnant domestic supply formed large contradiction.This gap is difficult to eliminate in a short period of time. After long-term period of time,most of the domestic demand for soybeans has to rely on imports, and the price ofimported soybean will directly affect the price of China’s soybean production. Proppingup the market policies implemented by countries to stabilize the soybean growing industry failed to achieve better results, and the country’s soybean industry regulatorypolicies need to be strengthened.