Analyzing the Problems of Agricultural Futures Market in China

Abstract

The agriculture is a fundamental sector for the development of society, and agricultural products play a key role in the economy. The equilibrium of agricultural product supply and demand is intimately linked to societal steadiness and the welfare of individuals. Consequently, the efficient functioning of the market for agricultural products is vital for economic growth. Agricultural product manufacturing and sales face multiple hazards, such as climatic change, natural disasters, market fluctuations, etc. Agricultural futures serve as a financial tool for the agricultural products market, providing essential hedging and risk management functions. The establishment and development of the agriculture futures market enables farmers and agricultural companies to hedge against agricultural product price fluctuations, reducing business operation risks. This promotes market stability and contributes to the healthy development of the economy. Additionally, investors can participate in the agricultural futures market to obtain investment income through price fluctuations. The agricultural futures market plays a significant role for farmers, agricultural companies, and investors. Therefore, researching and exploring this market is of great theoretical and practical importance and necessity.