ABSTRACT
Agricultural futures market plays an important role from both the perspective of risk aversion and the perspective of investment. Since 2004, China government has put forward nine No. 1 Central Documents which highlighted the importance of actively developing agricultural futures market to evade risks. At present there are three famous agricultural futures markets which are Zhengzhou Commodity Exchange (ZCE), Dalian Commodity Exchange (DCE), and Shanghai Futures Exchange (SFE), and there are 15 agricultural futures varieties in China. According to the U.S. Futures Industry Association (FIA) statistics, China’s agricultural futures trading volume accounted for 58% of that of the global agricultural futures market in 2011, which implied China has become the world’s largest agricultural futures markets.
