Corn deep-processing enterprises hedging in the future market belongs to buying hedge....
Corn deep-processing enterprises hedging has a direction puzzle. For deep-processing enterprises, though there has no products hedging, how about the future goods varieties? Can we hedge against the raw material? To analyze carefully, we can see that there still have some problems about raw material hedging. Corn deep-processing enterprises hedging in the future market belongs to buying hedge. Due to logistics, this will cause adverse effect to the northeast deep-processing enterprises hedging.
CORN DEEP-PROCESSING ENTERPRISES HEDGING is influenced by policy. With more and more attentions from the government to agriculture, peasants and country, it will become normal for the government to purchase farm products relying on the market. Because South Africa is the main production area for corn products, meanwhile the major income source of the local farmers depends on agriculture, South Africa will become the main area for corn fine and deep-processing products purchase replying on the market. Relying on market for corn compresses trader’s space and constricts futures market survival condition-speculator’s imagination space and participation passion.
There has increasing corn deep-processing enterprises hedging demand. With enterprises processing scale becoming larger and larger, the enterprise risk awareness should be strengthened. With corn market prices fluctuation intensifying and market demands uncertainty factors increasing, enterprises hedging demands are increasing. This is quite helpful to activate futures market and increase its mobility.
