Research On The Application Of Soybean Meal Derivatives In Company A' Procurement Cost Control

On March 31,2017,Dalian Commodity Exchange officially listed and traded soybean meal options contract,marking the domestic futures market enter the era of options.The listing of soybean meal options contract is the beginning of the transformation,which commodity derivatives financial instruments have changed from single futures instruments to dual futures and options instruments.Compared with futures contracts,options contracts have institutional comparative advantages,but at the same time,they also pose higher challenges to the participants in the options market.Since the soymeal futures contract was listed on July 17,2000,the soymeal spot market has withstood the adverse impact of many extreme market events and is still running smoothly.Therefore,as a new type of derivatives instrument,soymeal options expect to run smoothly after the listing.Soybean meal,as a companion product of soybean industry chain and an important source of plant protein feed,involves a wide range of subsectors and a long information transmission chain in the market.In order to investigate the impact of soymeal options on the industry chain related to soymeal,this paper investigates the operation of soymeal futures and soymeal options since they are list,and explores the subtle impact of soymeal options on the soymeal derivatives financial instruments system through statistical tests.Spot enterprises as important market participants of commodities,the hedging behavior of which in raw material procurement cost control is mainly the balance between soybean meal futures and soybean meal options.Therefore,based on the feed industry,this paper takes company A as a case study to compare and analyze the application of soybean meal options over soybean meal futures,so as to provide practical reference for spot enterprises to optimize procurement cost control with soybean meal options.This paper expounds the theory,puts forward the research methods and ideas,and provides scientific basis for empirical research.Based on the relevant research results,this paper discusses the procurement cost control of soybean meal options in feed enterprises.Firstly,this paper introduces the present situation of soybean meal derivatives and the application of soybean meal in the industry,and expounds the listing and trading of soybean meal futures;the background of introducing soybean meal options and the listing and trading status of soybean meal options.Then,this paper analyses company A's present procurement cost control situation and the improvement by introducing hedging tools.Through analyzing company A's hedging business model and the hedging effect of using soybean meal futures and options,it is concluded that soybean meal options have comparative advantage in feed raw materials procurement's financial cost,hedging strategy and etc.So reasonable use of soybean meal options can bring optimization effect to the raw material procurement cost control of the feed enterprises.