February 1, 2012

China will start new grain futures contracts 

Between 2012 and 2015, China will begin additional grain futures contracts, according to the State Grain Administration.

The move is intended to ensure grain companies and farmers have tools to hedge risks and improve price discovery for grains, the administration said in a development plan, dated Jan. 29, on its website.

It didn't elaborate on which grain futures will be introduced, the timing or which bourses will be involved.

Currently, hard white wheat, strong gluten wheat, common wheat and early-season rice are traded at the Zhengzhou Commodity Exchange, while corn, soy and soymeal are traded at the Dalian Commodity Exchange.

China is considering the launch of japonica rice futures on the Dalian bourse, the State Council, the country's cabinet, said last year.

China, the world's largest pork producer and consumer, will also likely launch pork-related futures this year to help stabilise spot market prices, Huang Hai, assistant to the Commerce Minister, said in December.