The Study On Price Risk Control Of Raw Material Procurement For Soybean Processing Enterprises In China

Since 2004, in the face of serious overcapacity in soybean industry, the monopoly of soybean imports by multinational grain, frequently severe fluctuating price, the reducing profit of industry, large-scale mergers and acquisitions by foreign capital, a large number of domestic crushing enterprises were forced to halt production, go bankrupt or be combined, and have become the focus hunting objects for multinational grain. Therefore, it is significant to strengthen the risk control of domestic soybean processing enterprises, which will help the enterprises go out of the crisis and improve the core management ability.This paper starts with raw material procurement source, procurement pricing of soybean processing enterprises in China, and analyzes the characteristic of procurement management and the status and problems of price risk control. It studies the factors of price fluctuation and the key factors of price seasonal fluctuation. Based on the high correlation between CBOT soybean futures market and DCE soybean futures market, it studies the seasonal fluctuating law of CBOT soybean futures price by seasonal adjustments and long-run persistence by R/S analysis method. For the characteristic of futures and spot procurement combined, it puts forward Hedge as the futures price risk control means and spot price risk control means and also compares the difference. At last, it puts forward the policy and suggestion to control price risk of raw material procurement for soybean processing enterprises in China at the macroscopic and microscopic level.The paper's main conclusions are as follows: first, the soybean processing enterprises in China are confronted with the serious price risk of procurement, second, a lot of middle-size private enterprises are restrained by the limit resources to control the price risk, third, price seasonal fluctuation of CBOT is obvious and it has weak weaker non-cyclical characters, fourth, the hedge to control futures price risk and spots risk control are the import methods to control price risk for the soybean processing enterprises in China.