Since 2010, there have been major fluctuations in the prices of agricultural products such as soybeans and garlic. There are many reasons for this, and the basic reason is that the production cycle of agricultural products is relatively long. When determining the quantity of the supply market, the future price is not known, and the forecast price and the actual price often have large deviations, causing the price and supply of agricultural products to fluctuate greatly. . The large fluctuations in the prices of agricultural products are not conducive to optimizing the allocation of resources and are not conducive to stabilizing the income of farmers. They also expose agricultural enterprises to greater risks in their production and operations.

Agricultural futures markets provide opportunities to avoid risks of agricultural product price fluctuations, reduce resource waste, safeguard the interests of farmers and consumers, and control the operational risk of agricultural enterprises. After more than 100 years of development, the modern futures market is not only sensitive to changes in commodity prices, but also extends the linkage effect of such prices to changes in the prices of related stocks. The volatility of agricultural futures prices reflects the supply and demand relationship in the spot market and affects the operating performance of agricultural listed companies, leading to fluctuations in their stock prices. Therefore, there is a strong correlation between the agricultural product futures market and the agricultural listed company. The hedging and price discovery functions of the "futures market + agricultural listed company" model can be used to evade the risk of agricultural product price fluctuations. In this process, the following points should be noted.

Producers of agricultural products should actively participate in the development of agricultural industrialization and order agriculture. Farmers indirectly participate in the futures market through the form of “company + farmer” and can use the futures tools indirectly to hedge. In the operation process of “company + farmer” or order agriculture model, the risk of agricultural product price fluctuation is borne by the order enterprise. Even if the agricultural product price falls during the harvest season, the order enterprise must purchase the agricultural product at the price specified in the contract, so that the market risk of the farmer household is obtained. dispersion. Through the operation of the futures market, order enterprises can also spread the price risk of agricultural products to many market investors, that is, the futures market can become the ultimate “export” of price risk in agricultural industrialization operations or order agriculture. Diversification and risk avoidance through the futures market will not only help the company stabilize the stock price and realize profits, but also guarantee the performance of the contract and the expected income of the agricultural products, and achieve a win-win situation for both producers and operators.

Agricultural listed companies should use the futures market and the stock market for hedging. When the spot market price fluctuates, its impact will be transmitted to the futures market and the stock market. The relevant companies shall consider the situation of the futures market and the stock market as a whole, arrange production and sales plans according to the prices of agricultural futures, hedge the raw materials and finished products in the futures market to lock in production costs and operating profits, and pass the market The establishment of positions with opposite buying and selling directions avoids the risk of sharp fluctuations in the company's stock prices caused by the volatile price fluctuations in the futures market.

Market investors should improve the scientific nature of investment decisions. Only by understanding the characteristics of agricultural futures investment and securities, investors can grasp the factors affecting the futures market and the stock market and their interaction mechanisms through comprehensive and scientific analysis, and make accurate comparisons of prices and trends of futures markets and stock markets. Judgment, to maximize the benefits under certain risk control.

Market managers should ensure that the market regulates operations and develops healthily. Establish an operational model for linking the agricultural industry chain with the agricultural product futures market and the stock market, and provide agricultural products producers, circulation dealers, processors, and traders with financial instruments that can effectively avoid market risks. Improve the market information transmission mechanism of agricultural products, strengthen the communication of information between the futures market and the stock market, establish a corresponding information release system, improve the timeliness and openness of market information disclosure, reduce information asymmetry, and promote agricultural product futures prices and agricultural enterprise stock prices. stable. At the same time, it will further regulate and reform the development of the stock market and futures market, improve its market function, and increase market efficiency.