Use Futures Market Promote The Development Of Sugar Industry In China

As an agricultural country, agricultural cultivation, production, current, consumption is directly related to the economic and social development. While the agricultural product futures market for agricultural products market system is the important constituent. Its effectiveness is directly related to the products of industry chain, downstream, in the accrual of the enterprise and market competition ability. In China, sugar is the fourth big crop of our country. Its production, circulation and planting is related to the national economic development in every aspect. Many of the sugar consumption enterprises are the food and beverage industry. So the sugar market stability is directly related to people’s livelihood problem.This article through to the sugar industry development present situation analysis, pointed out that our country sugar price volatility on sugar production enterprises, sugar consumption circulation enterprises and enterprise have big effect. This article analyzed the impact of white sugar price fluctuation, analyzes our country sugar price fluctuation. Through empirical analysis, determine the white sugar futures price and spot price of sugar, a causal relationship between the two variables stationary, but insufficient, illustrate hedging in futures market for sugar in shortage. This article pointed out the sugar industry chain, downstream, in different subjects are available through stored in the futures market. It can enhance the period of white sugar spot prices stable causal relationship, at the same time, and facilitates the implications of sugar enterprise risk aversion.This article in view of our country sugar production enterprises, sugar consumption circulation enterprises and enterprise survival situation, summed up the sugar price volatility is to restrict our country sugar industry developed by leaps and bounds of reason. The article discussed our country sugar price fluctuation. This article analyzed the relationship between duration of the price of goods. Considering Eviews5.0measurement software, we analyzed the white sugar spot price index and the recent settlement of futures price Granger causality test and co-integration test. The article puts forward our country sugar industry development should rely on sugar futures basic function.