| China has large output and consumption of soybean. With the expanding and deepening of financial market, the financial properties of soybean and its products are strengthened gradually and become more important than commodity property. The strengthened financial property causes the price fluctuating more frequently which leads to more risks for beans related producers, wholesalers and retailers. Beans related futures provide producers and consumers a good way to avoid risks. Therefore, the efficiency of futures market determines how well beans providers could hedge against the fall of price.Bean futures market effectiveness characterizes the efficiency of a local futures market of soybean, soybean oil and soybean meal futures in an aspect of value discovery and risk aversion, which has a significant impact on market participants. This article first makes an introduction to the theoretical basis of the article’s empirical analysis----the effectiveness theory of market. Then it gives comprehensive insights into beans’general profile by analyzing supply and demand relationship, statistical characteristic and price mechanisms, and clarifies the importance of financial property, high marketization, seasonal characteristic and co-movement with outer disk. The empirical analysis is based on the qualitative analysis and creatively uses the co-movement of all kinds of futures in the market to test the efficiency. It uses data from2012to now to create co-integration model of Soybean crush margins. Then it uses filtration method to test the efficiency of beans related futures between2006and2011which includes boom, crisis and recovery periods, and analyses the effects of economy on beans related futures. In the end, the article presents some policy suggestions to improve market efficiency, like avoiding the price fluctuation in crisis, promoting beans related enterprises to participate in hedging, bringing out beans related options and improving price mechanism of beans in stock. |
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