Research On Hedging Strategy Of White Sugar Risk Management In Y Company

With the development of society,economy and technology,the form of domestic sugar trade has also developed rapidly.It has developed from traditional spot trading to advanced trading forms such as electronic disk,futures and options,which is basically in line with the international market.In 2002-2016 the lowest price of about 2000 yuan,the most high of nearly 8000 yuan,was quite amazing,each Crushing Season amplitude of 1000 yuan-3000 yuan,about 30%-60%,of which 2015/2016 crop sugar prices from the lowest price of 5100 yuan/ton has risen to the highest price of 7500 yuan/ton,the fluctuation rate of about 50%,the sugar to stakeholders(including Sugarcane farmers,Sugar factory,Sugar merchants,Users,Consumers,etc.)directly brought great uncertainty and risk.In order to solve these problems and risks,The relevant departments of the state formally approved the listing of sugar futures on the Zhengzhou Mercantile Exchange on January 6,2006,Use futures to find prices and avoid risks,Pass through hedging by sugar futures,It is helpful to guide the production and management,dissolve the uncertainties and risks,and achieve reasonable and stable returns,which is of great significanceIn this paper,Y company as the research object,Through in-depth understanding and analysis of Y company's operating status and business development,Found a series of problems in Y company,Some improved methods and suggestions are put forward:First,strengthen the analysis of the white sugar market and its influencing factors,Including sugar macro policy and external factors,domestic and international market changes and substitutes,production and marketing and development,Forecast sugar market trends,Market trend analysis is one of the most important links in the selection of sugar futures hedging strategy and the actual income;Two,according to the rule of white sugar futures trading,futures hedging theory and white sugar futures hedging strategy,(including the minimum variance hedging strategy and basis hedging strategy),Combined with the actual operation and management requirements of Y company,Choose and adopt a scientific and reasonable hedging strategy,And put it into effect,In order to obtain reasonable and stable income;Three is to strengthen risk management,It includes strengthening the team building,optimizing the organizational structure,establishing the risk management system,determining the basic principles of the risk control,checking and authorizing the internal control indexes and the procedures(in the case of breakthrough in internal control indicators),The futures hedging of sugar has been in the scope of effective risk management.Research considers,Changes in the market are not dependent on human will,Even because of people's habitual thinking,Markets tend to conflict with expectations,This requires enterprises or individuals involved in sugar futures to maintain a rational and peaceful state of mind,Adhere to established principles,abide by operational discipline,Truly aware of the importance of risk management and futures hedging,In other words,enterprises should be stable,sustained and healthy development,We must adhere to the principle of risk priority,Do a good job in the basic business analysis and Study on the,Balance the risks and benefits,In actual application,we strictly execute the strategy of white sugar futures hedging,Especially the basis hedging strategy,Through continuous practical application to verify and sum up the business model suitable for their own enterprises.