An Empirical Study On The Price Discovery Function Of China’s Egg Futures Market

Egg futures,as the earliest livestock futures and live agricultural futures varieties listed in China,were listed and traded on the Dalian Commodity Exchange on November 8,2013.Laying hen breeding and the egg industry have always been key “three rural” issues supported by China.Therefore,the listing of egg futures can not only fill the vacancy of China’s livestock agricultural futures market,but also contribute to the development of egg-related industries.However,due to the short time to market and relatively few successful experiences that can be used for reference,the phenomenon of artificial speculation and speculation in the domestic egg futures market is obvious.At the same time,due to the higher threshold for participation in the egg futures market,and the relative shortage of effective supply and demand for traditional agricultural insurance in China,the income of many small-scale farmers in China cannot be effectively protected.Attempt-"Insurance + Futures" model,the premise of effective operation of this model is the determination of the target execution price between farmers or agricultural-related enterprises and insurance companies,and the reasonable determination of the target execution price depends on the price discovery function of the futures market Play.Based on the above background,this paper first summarizes and describes the development status of China’s egg spot market and the "insurance + futures" model;then uses Eviews8.0 software to establish a VAR model of the egg spot spot price series,and studies Relationship.The empirical results show that not only the correlation between egg futures price and spot price is high,but also that they have a long-term equilibrium relationship.The dominant force of price is stronger.Finally,based on the research conclusions,this article puts forward suggestions for improving the spot market for eggs from three perspectives: improving the futures market,standardizing the spot market,and encouraging farmers to participate,in order to help promote the "insurance + futures" model.In the egg futures market,it is necessary to improve the efficiency of information transmission in the egg futures market,rationally design egg futures contracts,and accelerate the listing of egg options;in the spot market,we must vigorously support industry leaders,large producers and other leaders to establish industry self-regulatory organizations and improve logistics and storage systems In terms of encouraging farmers’ participation,all parties in the society need to work together to popularize financial knowledge,establish a service intermediary organization between farmers and the futures market,and strengthen the cultivation of new professional farmers.