Study In Functions And Effects Of China's Agricultural Futures Market

In developed countries, the futures market have been developed and improved continuously. And at the same time it provides a better nsk-avoiding mechanism for every related industry. In the circumstances of building and developing market economy, China should develop futures market vigorously to provide services for related industries. Especially, on the conditions of in existence, how to develop agricultural futures market to serve agriculture, rural area and farmers should be an important research project for the economic community.The theoretical foundation of this thesis are price theory, hedging theory, markets' liquidity theory, markets' effect theory, economic cycle theory, monetary theory, and so on. According to these theories, the thesis deeply analyzed the operation state of the agricultural futures market and the influence factors on the price of agricultural product futures, discussed the function of finding price and hedging of futures market in detail, systematically studied the function of the agricultural futures market on the agricultural allowance, agricultural industrialization, agricultural globalization and the governmental administration on agriculture. At the same time, the thesis studied agricultural option pricing theory and it's function via B-S option pricing model. In the end, according to the innovation theory, the thesis discussed the necessity and the feasibility of the innovation & development of the futures market in China from the view to domestic and international institution, technique, management, variety, and participants in futures market and showed clearly the development orientation of futures market..The essential conclusions of this thesis are as follows: (1) It should be realized that the agricultural futures market in china are running in good shape. (2) When study the futures market, we must research futures price as well as it's influence factors seriously, and only in this way can we grasp the changing rule of the market. (3) Futures price can make up for the deficiencies of spot price, and resources can be allocated more effectively if futures price worked in the price mechanism. (4) We can take advantage of the developing hedging theory to avoid the production and management risks of spot enterprises. (5) The vital economic function of futures market can service for agriculture allowance policy to magnify it's function; can avoid the production and management risk of the agriculture industrialization main body—leading enterprises and farmers; can improve the international competitiveness of Chinese agricultural product so to ensure the development of the agricultural internationalization; and can help government to increase farmers' income, to adjust the agriculture planting structure, to regulate farm produce price, and to ensure the nation's food safety. (6) Scientific option price can be established according to option pricing model, which will enable the option market to develop normatively and to exert its essential function effectively. (7) The Chinese futures market should to be innovated and improved in institution, techniques, management, variety, and participants. (8) Chinese agricultural futures market should be developed and improved as soon as possible so to service the development of agriculture better.According to this study, we can conclude that China should develop agricultural futures market actively. It will be helpful to the implementation of national agriculture allowance policy and the industrialization of agriculture, enhancing the international competitiveness of Chinese agriculture, improving government management capability on agriculture, and ultimately it can provide powerful help for the reform and development of agriculture, and to solute the problem of "Three Agricultures".