China Hog Futures Market

Hog is large-scale commodity affecting our country's economy and people's living. Many problems are existing in hog Circulation System and related corporations are suffering from large economy loss for a long time. Future market of our country have walked into development with steady steps after having been rectified for seven years, and roles in price discovery, hedging and improvement of Circulation System have been played. However less future products don't meet the need of hog industry, so research on hog future to be listed is meaningful in reality, also it can provide solution for our government to problems of agriculture, country and peasants.Comparison Method is used in this paper. First the paper analyses the cash market of hog and change of price fluctuation in America because of the emergence of hog future. Then based on it, calculates the loss of efficiency in our hog industry. Second it introduces the development of hog future market and hog future contracts and their delivery of Chicago Merchantile Exchange. Third it tries to design the delivery institution of hog future and presents innovatively that it is suitable for hog future to execute physical delivery and cash settlement by cash price index.