Study On Corn Spot Price Volatility And Its Influencing Factors In Liaoning Province

Food is not only a necessity for people’s lives, but also strategic materials of the country. The development of agriculture in the most important position of all the work is crucial. In the international food crisis, China has some grain stock reserves, basically self-sufficient. With grain reserves,they can talk about the country’s stability and development in other areas, otherwise everything is just castles in the air.Lenin said:"The real economy is based on food reserves, without which the socialist system is just a wish."Corn is one of the three most widely grown crops in the world.lt not only can be used as food rations and fodder, but it is an important industrial raw materials.lt is the daily necessities of the people and the strategic materials of the country. As the main source of food and agriculture, the fluctuations in corn prices directly affect the vital interests of the majority of corn growers.Resources and geographical advantages, the Northeast has become a grain production base in China and it is the main producing areas of corn.Liaoning Province is not only the main origin of corn and grain circulation province, but also the main maize production and trade base. Corn price fluctuations in the Liaoning province related to the vital interests of the people.In the basic development of the corn industry in Liaoning Province as a background paper,it analyzes the price fluctuations of corn nearly a decade of Liaoning Province. Based on the corn price formation mechanism,we get the main factors in the fluctuations of corn’s price.Using econometric models and Eviews software,1 have done an in-depth analysis.Finally, we put forward the proposed policy.Specific content is divided into five parts:The first chapter is an introduction, focuses on the background and significance of this study.By reading a lot of literature,the formation of a literature review, research objectives and content, research methods and insufficient, route and innovation. The introduction of the study focuses on the background and significance. By summarizing research, it can form a literature review and clearly stated research objectives, content, research methods and innovation and inadequate.The second chapter is the corn industrial development in Liaoning Province.The chapter will be briefly outlined on the development of food industry, getting a dominant position in the corn crop development. Then it introduced the development of the corn industry in Liaoning Province in terms of corn production, acreage and yield per unit area. corn acreage and total production are located in the seventh in Liaoning Province, and the corn yield per unit area of Liaoning ranks third of the conclusions in the country.Finally, this paper analyzes the corn price formation mechanism, providing the basis for the corn market price volatility using SPSS.The third chapter is corn price fluctuations influencing factors in Liaoning Province.First of all,it qualitative analysis corn price fluctuations in Liaoning Province. It has carried out a statistical description on the factors affecting the price of corn and examines the correlation between the market price of corn and various factors between Liaoning Province.The fourth chapter is empirical analysis of factors affecting corn price fluctuations in Liaoning Province.This chapter uses the empirical model to analyze the price fluctuation of corn market in Liaoning region from 2005 to 2014.The dynamic relationship between the price fluctuation and the influence factors of corn in Liaoning region was obtained by using the unit root test and cointegration test;The impulse response function is used to get the impact of the price of corn market in Liaoning area; The contribution of factors affecting the market price of corn was got in Liaoning Province by using variance decomposition.The price of corn in Liaoning is mainly influenced by the change of its price.Disposable income of urban residents and the price of international crude oil price fluctuations have a significant impact on the price of corn and the effect of long-term. The price of corn in Liaoning has some time delay in the international crude oil price and the change of the disposable income of urban residents.The fifth chapter is conclusions and policy recommendations.In this chapter, a summary of the paper is made.According to these conclusions, a series of policy suggestions are put forward to ensure the stability of the corn market price, ensure the income of the farmers and promote the healthy development of policy recommendations corn industry.For example,the government can increase the amount of subsidies, reduce taxes to increase consumer disposable income and reform temporary storage policy to ensure stable development of corn industry in Liaoning Province.