The Hedging Solution Of D Soybean Press Production Company

In 2018,China’s economy showed a downward trend.In terms of the real economy,since the second quarter of 2018,affected by the economic and trade friction between China and the United States,the growth rate of consumer demand for foreign companies has continued to weaken;the output side has been affected by domestic supply-side reforms,all of which are mainly based on inventory reduction.Focusing on Sino-US economic and trade frictions,the first to bear the brunt of agricultural products is soybeans.Since China’s soybean dependence on foreign countries is 90% higher,the raw material soybeans of domestic large and medium-sized soybean crushing enterprises are basically derived from imported soybeans.Due to the negative impact of Sino-US trade friction,the global soybean supply balance has changed.China’s import tariff on US soybeans increased by 25% or even stopped importing US soybeans.Thanks to this,South American soybeans began to rise in the second quarter of 2018,and prices continued to rise.US soybean prices are weak,and South American soybean prices are strong.In 2019,whether this situation will continue or depends on the Sino-US trade attitude.The degree of mitigation of SinoUS trade attitude will be transmitted to the regional imbalance of global soybeans.If only imports of US soybeans are allowed,28% of tariffs will continue.Then the South American soybean price will be close to the US 28% tariff price,and the linkage between the two sides will also increase.If the US soybean import is allowed,and the 3% tariff is restored,the regional imbalance will be broken.Global soybean price consistency has resumed,so Sino-US trade friction remains the primary factor affecting global soybeans in 2018/19.In this paper,under the 2018 Sino-US trade friction,how can medium-sized soybean crushing enterprises maintain normal production and operation,avoiding risks as the entry point,through the macroeconomic environment change of Sino-US trade friction in 2018,the supply situation of soybean production areas in South and North America and domestic finished soybean oil Analysis of the changes in the demand for soybean meal,and designing the D-company soybean crushing enterprise hedging solution from the perspective of the neutral development of Sino-US trade friction.Under the complicated macroeconomic background of Sino-US trade friction,domestic soybean crushing enterprises should not only consider the price fluctuation of raw soybeans imported,but also consider the supply and demand changes of finished soybean oil and soybean meal.Domestic soybean meal In addition to the cost changes caused by Sino-US trade friction,there are also changes in domestic soybean meal demand.Sino-US trade friction and South American production are the key factors for the cost of imported soybeans.From the perspective of demand for domestic soybean meal,the African swine fever epidemic has a greater interference with demand.In the current situation,the 2018 African swine fever epidemic may continue.In addition to the low protein food proposed by the China Feed Industry Association,there will be a certain impact on the demand for soybean meal.In view of this,in the ever-changing macro environment and the current turbulence,as a small and medium-sized soybean crushing enterprise in China,how to improve the risk resistance of the company’s business operations under the Sino-US trade friction,how to effectively deal with future uncertainties is worthy of scholars’ research.one question.At the same time,the futures company serves the real economy to prevent systemic risks.It is of great significance to design a set of effective hedging schemes for small and medium-sized soybean crushing enterprises to provide support and assistance to the relevant business operations of the entity.Due to the slowing demand for soybean meal,there are many uncertain factors in imported soybeans.The authors designed the hedging strategy for state-owned medium-sized soybean crushing enterprises.The focus is on the word “squeezing”,which will lock the squeeze profit as the core point and turbulent in the current situation.In the macro environment,it is biased towards a conservative hedging strategy,so that the company can survive,reduce shocks,lock in profits or reduce losses in the context of Sino-US trade friction uncertainty risks.