Research On Price Discovery Function And Fluctuation Spillover Effect In Corn Futures Market

With the rapid development of international financial markets,the variety of trading products has gradually expanded,and the agricultural futures market has become more and more eye-catching.As one of the three major agricultural products trading varieties in the world,corn plays an indispensable role in both the agricultural futures market and the spot market.Similarly,in our country,corn and rice,wheat are called "agricultural giants".In recent years,the national living standard and the development of energy industry have increased the demand for maize production.China's maize planting area and yield occupy the second place in the world,and maize accounts for 90%of the crude grain commodities in China.It is also an important raw material for fodder,new energy and fuel.It is very important in ensuring national food security.In 1990,the grain wholesale market in Zhengzhou,China,as the first commodity trading market based on spot trading and futures trading mechanism,opened.Since then,China's agricultural futures trading has begun.The corn futures market in China has developed smoothly since it was re-launched in 2004,and there are no big fluctuations.Futures market price guidance function has also been better played.With the introduction of national policies on corn industry,the price of corn has become more market-oriented.At the same time,the role of corn futures market in trading has become increasingly prominent.The futures market price guidance and hedging function is particularly important.The function of hedging depends on price guidance,so further exploring the price behavior of corn futures is of great significance for promoting better service of corn futures market and maintaining the stable development of corn industry.Through the guiding relationship between price fluctuations in futures market and spot market,enterprises can lock in production costs and achieve expected returns by hedging transactions,and use this price signal to guide production and trading activities properly,so as to reduce the risk of sharp price fluctuations in a certain range.Based on the background of corn futures and spot market in China,this paper uses the error correction model BEKK-GARCH to conduct an empirical study on price guidance and volatility spillover of corn futures and spot market in China from 2009 to 2018.Based on the empirical results,this paper analyses the direction,path and volatility intensity of spot price guidance,and strives to have a positive impact on corn futures market in China.Deeply and clearly understand the operation efficiency of China's corn futures market.It has certain theoretical and practical significance to alleviate the losses caused by the sharp price fluctuation of maize,to avoid potential market risks and to improve the construction of agricultural product market system.Based on the empirical analysis of corn futures and spot prices in China and the specific national conditions of domestic agricultural products development,this paper puts forward some suggestions:improving farmers'participation in the futures market,standardizing the construction of the futures market,strengthening the transmission of market information,transforming government functions,etc.