The Influence of the Uncertainty of Sino-US Economic and Trade Policy on the Volatility of Corn Futures Market

Abstract

China and the United States are key players in the global agricultural trade network and important trading partners that interact with each other. However, against the background of escalating trade frictions between China and the United States and the outbreak of the global epidemic, the issue of food prices has once again received much attention. As an indispensable and important part of Sino US trade, corn futures are constantly affected by the uncertainty of the economic and trade policies of the two countries. Based on this, this article, on the basis of establishing a basic theoretical framework for analysis, further explores the transmission mechanism and channels of the impact of trade policy uncertainty on the price of corn futures between China and the United States. It is found that the price changes of corn futures between China and the United States mainly consist of the trade path and the financial path. Accordingly, this article proposes that China and the United States should further strengthen economic and trade consultations, communication and collaboration, strengthen scientific and technological innovation, and promote trade market diversification and other relevant policy recommendations, providing reference opinions and suggestions for the development of Sino US trade relations and the stability of global food prices.