Study On The Relationship Between Price Of China’s Maize Futures Market And Spot Market

Maize is one of the most important field crops, grain varieties and feedstuff. After 2008, the relationship between supply and demand of Maize in China has been in a tight state of equilibrium, we need import large quantities to meet domestic demand every year. The healthy and stable development of the maize markets play an important role in our country’s grain security and national economic development. Spot markets are essential to development of the futures market, futures market can guide and adjust the development of spot markets, the price of futures markets and spot markets have a close correlation. The spot price of maize is decided by the relationship between supply and demand and futures price depends on the supply and demand in the future,while the actual delivery is the link between the futures price and spot price.This paper first makes a detailed analysis on the influence factors of futures price and spot price of maize. Using the knowledge of economics, finance and Econometrics,methods for study of the relationship between futures and spot price of maize are put forward as follows:the relevance between futures and spot price of maize, the efficiency of futures price and the empirical analysis of the futures price and spot price. Moreover, setting up a game theory model to study the influence factors in transmission from futures price to spot price. Finally the research results show that futures price and spot price have a strong correlation,Futures price is effective and Futures price can have an influence on spot price through market information transmission, market liquidity and transaction cost.