Red bean futures
Red adzuki beans
Red adzuki bean, also known as adzuki bean, red bean and adzuki bean. It is produced in all parts of the province. In addition to cooking directly, it is the main raw material for food bean paste. The bean noodles and pastry fillings made with red adzuki beans are used to prepare substitute food, which increases the variety of pastries in the food industry and improves people's life. The rice, porridge and soup made of red bean are delicious, and the old and young like to eat them; Red bean ice-cream has a delicious color. It is a cool summer food with flavor. Its skin can be used to extract pigment. Red bean is a good food therapy product. It is sweet and cold in nature. It has the effects of curing blood, expelling concentration, detumescence, and detoxification. It can cure heart and kidney, small organ swelling, pain and swelling, and rib dislocation. Adzuki bean is nutritious, widely used, and popular all over the world.
Adzuki bean is a kind of small coarse grain with high protein, low fat and multi nutrition, which is less planted in the world. China is the country with the largest planting area and output of adzuki bean in the world. The annual output is generally 300000 to 400000 tons, and a considerable part of it is exported to Japan, South Korea and Southeast Asian countries. Japan is the world's largest consumer of adzuki bean, with an annual consumption of about 100000 to 120000 tons, while its annual output is only 60000 to 90000 tons. Most of the adzuki bean imports come from China, and the import volume plays a decisive role in the price trend of adzuki bean in the international market.
Distribution of adzuki bean and adzuki bean futures in China
In China, there are mainly 10 kinds of high-quality red adzuki beans (also called Tianjin red adzuki beans, which are mainly distributed in Tianjin, Hebei, Shanxi and Shaanxi), Tangshan red (Tangshan Yutian and its surrounding areas in Hebei), Baoqing red (Baoqing and its surrounding areas in Heilongjiang), Dahongpao (Qidong in Jiangsu), among which red adzuki beans enjoy a good reputation in Japan for their unique quality, It is listed by Tokyo Grain Exchange as the only alternative delivery of the subject matter of the red bean futures contract. The annual output of vermilion adzuki bean is about 60000 tons, which is mainly exported to Japan, South Korea and Southeast Asian countries.
The output of adzuki bean is greatly affected by natural conditions, climate change and domestic and foreign market demand, and its price fluctuates frequently. In the early 1950s, Japan was the first in the world to launch the trading of red bean futures contracts. After nearly half a century of transformation, supplementation and improvement, the futures contract of adzuki bean in Tokyo Grain Exchange has become the most influential adzuki bean futures market variety in the world today.
Since the 1990s, China has also been constantly exploring how to use adzuki bean futures trading for production and circulation services. Eight exchanges, including Beijing, Shanghai, Dalian, Changchun and Hainan, have launched adzuki bean futures trading, of which Tianjin Stock Exchange and Jiangsu Stock Exchange are the most active. In this round of future market variety adjustment, adzuki bean has been retained and will be listed on the Zhengzhou Commodity Exchange.
Review of Adzuki bean futures trading
The first period: September 1994 January 1996, launch period.
Due to the successful example of adzuki bean futures trading in the Tokyo Grain Exchange, and the fact that cinnabar adzuki bean produced in Tianjin and its surrounding areas plays a leading role in the export of adzuki bean Tianjin Port More than 50000 tons of adzuki bean were shipped to Japan). The Tianjin Stock Exchange took the lead in launching adzuki bean futures contracts for trading in September 1994. The subject matter of the transaction is Tianjin adzuki bean which can be replaced for delivery in the Tokyo Grain Exchange. Baoqing Red and Tangshan Red high-quality adzuki bean can be delivered at a discount. In November 1994, it was stipulated that ordinary adzuki bean can also be delivered at a discount.
The price of Tianjin Red declined from 5600 yuan/ton to 3680 yuan/ton for 503 contracts shortly after its listing. After the 507 contract was listed, due to the continued downturn in the spot market, the futures price fell all the way. When the price drops to about 3800 yuan/ton, the main bulls, on the one hand, purchase a large number of spot goods in the spot market, on the other hand, absorb enough chips at a low price to gradually raise the future price. With the addition of hot money in the market, the trading volume and positions of 507 contracts began to increase from the middle of May. At the beginning of June, the main force of the bulls started to work, pulling two limit plates in a row, rising to 5151 yuan/ton. In order to curb excessive speculation, the Exchange continuously issued documents on June, July and August requesting to increase the trading margin. On the 9th, the main market bulls raised the futures price to 5000 yuan and 4980 yuan, and at 9:30, all terminals in the market were shut down. The next day, the Exchange announced that the trading on the 9th was invalid and the 507 contract was closed for two days. Subsequently, the Exchange took measures to require members to compulsorily close their positions. This is the "Tianjin Red 507 Incident".
From June 1995 to January 1996, Suzhou Red Futures came from behind.
Suzhou Commodity Exchange officially launched the trading of red bean futures contracts on June 1, 1995, and its trading object is second-class red bean. Due to the downturn of the spot market of adzuki bean, Suzhou Red 1995 series contracts faced huge firm offer pressure once they were listed. The warehouse inventory has been continuously increasing, resulting in the consecutive record low futures prices. 9511 hit a low price of 1640 yuan/ton. The low futures price and the yield reduction of red bean in 1995 and other positive news prompted many funds to enter the market to copy the bottom. With the successive listing of various contracts in 1996, the main multi position players used the defects of the delivery terms of the exchange and the restrictions on the position, and used the support of the positive news to deliberately close the gap on the 1996 series of contracts. The contract price of 9602 contract rose to a high of 4155 yuan/ton from 3380 yuan/ton in the middle of October to November 9, and then fell back to settle down and entered the boom stage again in December. On December 15, the Suzhou Stock Exchange informed that the delivery of old and new beans was strictly prohibited. On December 19, it announced that the inventory was only 5450 yuan/ton. Bulls took the opportunity to hype crazily, and the price rose from 3690 yuan/ton to 5325 yuan/ton in the past month. The main short seller suffered heavy losses, and at the same time, many hedgers were pulled out.
On January 8, 1996, the China Securities Regulatory Commission (CSRC) believed that the Suzhou Red Bean contract and trading rules were not perfect and required that the positions of each position contract should be reduced and forward contracts after 9608 should not be opened. On January 9 and 10, Suzhou Red Bean would be closed down if it did not open, which also exposed the long positions at high positions to the risk of exploding positions and huge losses. After that, the Suzhou Stock Exchange launched a series of compulsory closing measures, and the futures price was significantly reduced. On March 8, the CSRC issued a notice to stop the trading of red bean futures contracts in the Suzhou Stock Exchange.
The second period: from February 1996 to October 1997, the exchange modified the delivery terms, and the 9609 incident broke out, and the exchange strengthened risk monitoring.
After the Suzhou Red Bean incident, the red beans originally stored in the delivery warehouse of the Suzhou Stock Exchange poured into the Tianjin market. In order to prevent risks, Tianlian Exchange has stipulated a maximum delivery volume of 60000 tons. The bulls then concentrated their capital advantages, unified allocation, and manipulated the market by means of position splitting, position shifting, and excessive position holding, which made the contracts in 1996 a continuous trend of multi closing, and finally led to the 9609 event, which again sounded the alarm bell for the risk supervision of the exchange. At the end of the year, stimulated by the possible increase of Japan's import quota of adzuki bean, the futures price further rose, and the 9705 contract reached 6800 yuan/ton at the beginning of 1997. From before the Spring Festival in 1997 to the end of October, the futures prices were in a downward trend to seek support, which failed to reverse the decline.
The decline of the market at this stage has the following basic reasons: ① it is the rational regression of the consequences of early closing; ② The import quota of Japanese adzuki bean was significantly lower than the market expectation; ③ The Chinese Chamber of Commerce decided to stop issuing export licenses in response to the situation of national export manufacturers' competitive bargaining. The index of thousands of tons of lipstick beans exported to South Korea was invalid. A large number of spot traders were short selling in the futures market. The real market pressure was heavy, and the market presented a situation of oversupply.
In terms of market delivery and supervision, the SSE launched new Articles of Association and Trading Rules approved by the CSRC. At the beginning of March, the CSRC announced its decision to deal with the Tianjin Red 9609 incident, which dealt a heavy blow to speculators. However, in this stage, the cheaper adzuki beans produced in Shanxi and Shaanxi were not separated from the adzuki beans produced in Tianjin and Hebei, participated in delivery without discount, and the spot traders were unwilling to accept the goods for export, indicating that the Exchange needed to improve its implementation of the principle of fairness, impartiality and fairness.
The third period: from November 1997 to May 1998, the period of gradual standardization. In order to seek to be in line with the Tokyo Grain Exchange, in October 1997, the Tianjin Stock Exchange significantly raised the delivery standards for Tianjin Red and its substitutes. On November 14, the place names of 1997 red beans were sealed and then launched“ agriculture products Industrialization ", and launched the registered brand registration system in early 1998. With the introduction of these measures, the Exchange has actively explored how to further standardize the domestic adzuki bean futures market and seek to integrate with the international adzuki bean futures market. The improvement of the intrinsic value of Tianjin Red has made the futures price have a certain resilience.
