Egg futures are likely to be launched in China for the first time by the end of 2012. It is already at the stage of approval procedures according to Liu Xingqiang, general manager of Dalian Commodity Exchange.
Dalian Commodity Exchange is not the first to create egg futures, which have long been developed in international futures markets: eggs are one of the earliest trade contracts on the Chicago Mercantile Exchange market, though the contract has since been cancelled.
According to insiders, similar to hog futures, egg futures have a strong trading practicality as eggs are easy to standardize, which eliminates problems when settling accounts.
Consumers can see the price correlation between eggs sold in the farmer’s market and in futures market– prices of eggs in supermarkets will increase or decrease directly with egg futures.
As one of the most common foods, egg futures arouse general discussion on the Internet. Some worry about hot money in futures market raising eggs’ price and affecting people’s daily life.
Many employees in futures firms also doubt about the possibility of the launch of egg future by the end of 2012 as the “rumor” has been floating for a long time.
However, it was reported that the launch of egg futures will bring the bullish to related companies.
Source: Morning Whistle Nov 2012