Hog futures are allowed to be listed and traded on the Dalian Commodity Exchange. According to an announcement issued by the China Securities Regulatory Commission on April 24, the China Securities Regulatory Commission recently approved the Dalian Commodity Exchange to carry out live pig futures trading. This is a new measure for the futures market to implement the market-oriented allocation of capital factors and increase the supply of effective financial services. It is also a concrete manifestation of the capital market playing a central role and serving the real economy more effectively. Live pigs are my country’s most valuable agricultural and sideline products, and live pig futures will be the first live delivery variety listed on my country’s futures market. Industry insiders believe that pig futures will play a positive role in stabilizing price expectations, large-scale industrial development, and targeted poverty alleviation.
Futures night trading will officially resume on the night of May 6. On April 24, three commodity futures exchanges and Shanghai Energy issued notices respectively that night futures trading would officially resume on the night of May 6 (Wednesday). Previously, due to the need for epidemic prevention and control, futures night trading was suspended from February 3. During this period, the international market coincided with sharp fluctuations, and some domestic products experienced gaps and price discontinuities, which put a series of pressures on investors’ trading risk control. Industry insiders said that as the domestic epidemic situation gradually becomes clearer, the market conditions for resuming night trading are now relatively complete. The resumption of night trading will not only promote closer linkage between domestic and foreign markets and improve the continuity of price trends of listed products, but will also help the country strengthen its pricing power of global commodities and minimize the interference of international pricing on domestic commodity price fluctuations. .
The three major commodity futures exchanges have “guaranteed and expanded their boards” before the holiday to prevent risks. The three major domestic commodity futures exchanges have recently issued notices one after another, adjusting the margin standards and price limits for certain types of trading during the 2020 Labor Day period. Industry insiders remind that the recent global situation is complex and changeable, and there are many uncertain factors affecting market operation. Investors should control their positions in a timely manner and pay attention to risks. At the same time, all futures operating institutions must also do a good job in risk warning to customers, strengthen market risk prevention, and ensure the smooth operation of the market.
Worldometers real-time statistics show that as of 5:50 on April 27, Beijing time, the cumulative number of confirmed cases of new coronary pneumonia worldwide exceeded 2.98 million, reaching 2,988,945, and the cumulative number of deaths The number of cases exceeded 206,000, reaching 206,728. The United States has the most cumulative confirmed cases of COVID-19 in the world, with more than 980,000 cases, reaching 985,060, and the cumulative number of deaths has exceeded 55,000, reaching 55,357.
Last week, May WTI crude oil futures fell into negative territory for the first time, the lowest level since U.S. crude oil trading data was available in 1946. June WTI crude oil was not spared and fell sharply at the same time. The sentiment in the commodity market is sluggish, and the U.S. dollar index has broken through the 100 mark, further suppressing the trend of industrial products. Among them, fuel oil, crude oil, and palm oil were the top losers for the week, all falling by more than 7%, while ethylene glycol, eggs, asphalt, and styrene fell by more than 4%. In addition, rapeseed meal, rapeseed, ferrosilicon, Shanghai gold, LPG, and apples ended last week with gains of more than 1%.
The May Day holiday will begin this Friday. For investors, whether to hold positions to celebrate the holiday or hold currency to celebrate the holiday is a question worth thinking about. During the domestic Labor Day holiday, the impact of the external market may continue to affect the domestic market. What aspects should we pay attention to in the future market conditions of energy, chemical, agricultural products, metals and other sectors?
The road to bottoming for oil prices is long and the chemical industry is still uncertain
Last week Industrial products were green on a large scale, with energy and chemical products leading the decline. Among them, fuel oil fell sharply by 8.95%; ethylene glycol followed closely, falling by 6.40%; asphalt also fell by nearly 6.00%; ferrosilicon bucked the trend and rebounded, rising by 1.79%.
Affected by the WTI May contract falling into negative values, fuel oil continued to fall sharply. International crude oil prices have fallen sharply, and the domestic heavy oil market has opened a downward channel. The transaction prices of slurry and residual oil have dropped significantly, and the trading atmosphere has turned dim. The recent crude oil contract premiums for June and December have remained at high levels, triggering traders to hoard oil for arbitrage, and the continued surge in sea freight VLCC has driven demand for some marine fuels. Currently, Singapore’s 0.5% sulfur marine fuel market is still oversupplied, but traders are unwilling to sell supply in the spot market due to the futures premium structure of the market.
Yu Pengsen, an energy researcher at Zhaojin Futures, told the Futures Daily reporter that taking the main Brent contract as an example, from April 21 to April 22, Brent crude oil The main contract began to decline from 26.33 US dollars/barrel, falling to as low as 15.98 US dollars/barrel, a drop of more than 39%; from the lowest point on April 22 to the highest point of 23.22 US dollars/barrel before 3 pm on April 23, the increase continued. More than 45%. “A 40% increase or decrease occurred within three days, resulting in a large-scale drop in domestic chemical products on April 22 and a large-scale rise on April 23. In this abnormal movement, crude oil and the direct downstream performance of crude oil The most obvious ones are those that are highly correlated with crude oil and have large differences in market outlook expectations in terms of fundamentals, and they rise and fall in a wide range,” he said.
International crude oil prices first declined and then rose last week, which represents the recovery of market sentiment. However, in essence, there is a gap between the weakness on the demand side caused by the epidemic and the continued pressure on the supply side. The conflict has not been alleviated. Zhong Meiyan, director of energy and chemical industry at Everbright Futures Research Institute, believes that although crude oil has opportunities for a periodic rebound, the real “bottom” of oil prices is not solid, and oil prices will run at low levels for longer than expected.
“The current pricing of crude oil will take into account the flow of; The price limit for styrene futures contracts is adjusted to 11%, and the margin levels for hedging and speculative transactions are adjusted to 11% and 12% respectively; the price limits for soybean oil and palm oil futures contracts are adjusted to 9%, and hedging The margin levels for trading and speculative trading are adjusted to 9% and 10% respectively; the margin levels for hedging and speculative trading of plywood futures contracts are adjusted to 40%, and the price limit remains unchanged; Soybean No. 1 and Soybean No. 2 , soybean meal, corn, corn starch, japonica rice, eggs, polypropylene, ethylene glycol and fiberboard futures contracts’ price limits and trading margin levels remain unchanged. After the resumption of trading on May 6, the following adjustments will be made from the settlement of the first trading day when the futures contract with the largest open interest of each variety does not have a price limit or continuous quotation on one side: the price limit range of the soybean oil and palm oil futures contracts Recovery to 7%, hedging transactions and speculative trading margin levels recovered to 7% and 8% respectively; iron ore, coke, coking coal, polyethylene, polyvinyl chloride, liquefied petroleum gas, styrene and plywood maintained their gains during the holidays The price limit range and trading margin level will remain unchanged and will not return to pre-holiday standards; the price limits for futures contracts of soybean No. 1, soybean No. 2, soybean meal, corn, corn starch, japonica rice, eggs, polypropylene, ethylene glycol and fiberboard varieties. Ranges and trading margin levels remain unchanged. </p
