Research On The Risk Management Of Raw Material Price Of Z Soybean Processing Company Based On Futures Option Tool

At present,China's soybean processing industry has experienced decades of development,and the industry has formed oil,protein and food processing systems,but most domestic soybean processing companies generally have problems such as small scale,low processing level and operating difficulties.In recent years,the international situation is unstable and the financial attributes of agricultural products are enhanced,resulting in drastic price fluctuations of agricultural products,which will bring greater operational risks to soybean processing companies.Soybean processing company takes soybean as the processing raw material,and the raw material cost accounts for more than 95% of the company's total cost.The drastic fluctuation of raw material price will make the company's cost change greatly,thus affecting the company's operating profit.At present,domestic soybean processing companies due to the impact of their own internal environment,business is difficult,raw material price volatility will only add to the company's business.Therefore,under the condition that the domestic environment cannot be changed in the short term,raw material price risk management may become another scheme for soybean processing companies to improve their operations.In Z company,for example,this paper use hedging theory,basis theory and the theory of options trading,analysis the sources of the raw material price risk Z company,forming factors and characteristics,through to our country soybean processing enterprise risk management motivation,situation and means,put forward the Z company raw material price risk management ideas.The soybean of Z Company is from domestic soybean,and the representative of domestic soybean futures is Yellow soybean No.1.Through the introduction of the general situation of yellow soybean No.1 futures and the analysis of soybean price trend,the management scheme of raw material price risk is formulated from two aspects of the source of raw material price risk of the company.Using futures option hedging scheme to manage the risk of sharp price fluctuation of soybean;Establish virtual inventory and use base difference trading to manage the single risk of purchasing mode of the company.Finally,this paper proposes the guarantee measures for the effective implementation of the raw material price risk management scheme from the internal and external aspects of Z Company,so as to ensure the effective and smooth implementation of the scheme.At the internal level,Z Company should strengthen the risk managementawareness,establish an independent derivatives trading department,improve the relevant systems of the company,introduce professional financial personnel,establish the correct concept of derivatives risk management,flexibly use a variety of derivatives instruments,and pay attention to the reinsurance effect of options on futures.The external level is the foundation of Z Company's raw material price risk management,which requires the improvement of the futures market regulatory system and the guarantee of futures market liquidity.Through the research of this paper,it is an inevitable trend for Chinese soybean protein processing enterprises to manage raw material price risk by using derivatives such as futures and options,while doing well in their own operations,enterprises should also put the prevention of raw material price risk into practical and effective action,carried out in the daily operation of enterprises.