Research On Risk Conduction And Evasion Strategies Of Price In Corn Industry Chain

Since ancient times,agriculture has always been the industrial foundation of our national economy,providing basic raw materials for people's daily lives.With the increasing influence of domestic and foreign market factors on the prices of agricultural products,the prices of agricultural products in China have fluctuated sharply in recent years.As an important agricultural product,corn is subject to severe price risks.However,the increasingly complex and volatile economic environment has prompted various financial products to be developed and used one after another.Futures are a typical example of these emerging financial products and play a decisive role in stabilizing industrial development.In the case of corn futures,it is possible to provide price discovery,risk aversion,and resource allocation efficiency for production and business entities in each link of the corn industry chain.This paper analyzes the price risk transmission of the corn industrial chain,and analyzes the basic characteristics of the price risk of the corn industry chain,explains the causes of the price chain,reveals the transmission mechanism of the price risk of the corn industry chain through empirical analysis,and presents the specific conditions of each operating entity of the corn industry chain.Price risk aversion strategy.First of all,analyzing the risks faced by the main players in the upper,middle and lower reaches of the corn industry chain,it is found that each subject is more likely to be affected by unpredictable and uncertain factors,which increases the probability of price risk.Secondly,the price risk transmission in the corn industry chain was studied.The VEC model was used to analyze the price of corn in the middle reaches of the corn industry chain and the price of corn in the downstream of the corn industry chain.The results showed that the price fluctuations of corn were in the middle and lower reaches of the industrial chain.All have an impact.The change in corn prices has a major impact on the corn industry chain.Thirdly,the introduction of futures hedging tools to evade the price risk in the corn industry chain and the hedging program design for the upstream production enterprises of the corn industry chain,the trading companies in the middle reaches of the corn industry chain,and the downstream processing enterprises in the corn industry chain.The risk aversion strategy of the main body of production and operation in each link of the industrial chain.Finally,from the emphasis of each entity on the role of the futures market in avoiding risks,establish a corresponding price risk prevention system.Policy makers propose targeted policy recommendations based on the price risk transmission system of the corn industry chain and other relevant industrial policies.Maintain the healthy development of the corn industry.