November 22, 2007

China to tap on live pig futures to stabilize pork prices

Chinese experts proposed for the launch of live pig futures to stabilize pork market on sharp price hikes.

Industry experts believe that live pig futures will play positive functions in stabilizing pork prices.

Dalian Commodity Exchange, one of China's three futures marketplaces, has set up a team of experts to research and design live pig futures contracts.

Presently, related study work is being sped up. Live pig delivery places are also selected.

However, experts said that it would take time for the proposal to materialize due to lack of general criteria on inspection of live pigs in commercial trade activities in the country.

According to China's National Bureau of Statistics, domestic pork prices in October surged 54.9 percent on an annual basis. It has been rising sharply since the second half of 2006 due to inadequate live pig supply.