Research On The Influence Of The Price Discovery Function Of Egg Futures On The Development Of Layer Industry

Layer industry is an important part of animal husbandry in China,which is closely related to People’s daily life,it can not only meet the consumer demand of urban and rural residents,but also promote employment,increase farmers’ income and promote the development of related industries.However,in recent years,the price of eggs in China fluctuates frequently,and even"rocket eggs" appear several times,which not only affects the interests of egg producers,but also affects the interests of consumers.Therefore,In order to stabilize the spot market price of eggs,promote the stable and healthy development of the layer industry,on November 8th,2013,Dalian Commodity Exchange launched egg futures,egg futures market is of great significance to the development of layer industry,A perfect futures market can provide a certain guide to the price trend of the spot market through its price discovery function,thus enterprise can timely adjust management strategy accordingly,avoid risks effectively,and promote the stable development of layer industry.Based on the above background,this paper takes the price discovery function of egg futures market as the entry point,and through theoretical analysis and empirical research,discusses the development of the price discovery function of egg futures market in China.Firstly,this paper summarizes the development status of China’s egg spot market and egg futures market.Secondly,this paper expounds the mechanism of the price discovery function of futures market and the application of the price discovery function of eggs in the layer industry.Finally,on the basis of theoretical analysis,this paper makes an empirical study on the price discovery function of egg futures in China by means of cointegration test,granger causality test,impulse response function and other econometric methods.Empirical results show that the egg futures market in China has preliminarily with the function of price discovery,but still has great development space,so in order to further improve the egg futures market in our country,promote the smooth and healthy development of layer industry in our country,summarized the factors that may affect its function,and put forward the following countermeasures:The first is to improve the participation of futures market participants in layer industry;The second is to strengthen the scientific regulation of the egg spot market,in order to avoid the violent fluctuations of egg prices;The third is to further improve the egg futures contract design standards and delivery system;The fourth is to speed up the listing of egg options.