The world’s first apple futures contracts started trading on Zhengzhou Commodity Exchange in central China’s Henan Province Friday morning [22 December 2017]. China is the world largest apple grower and consumer, and its apple output and farms have been increasing over the past decade. In 2016, China had 2 million hectares of apple trees with an output of 43.88 million tonnes, accounting for 57 percent of global supply…Full Article: ECNS.cn Dec 2017

Key Note

  • According to China’s Ministry of Agriculture, the country has 122 key apple growing cities and counties.

ChinaAg Comments

  • In August 2017, the ZCE began trading cotton yarn futures
  • In July 2017, the China Securities Regulatory Commission (CSRC) gave approval for cotton yarn futures to be launched by the ZCE.
  • In April 2017, the Zhengzhou Commodity Exchange (ZCE) launched white sugar options. At the time, China reportedly had 40 million sugarcane farmers. It should be noted that commodity options differ from futures contracts in that investors exercise the option to buy or sell the underlying assets at a predetermined price without the obligation to buy/sell.
  • In March 2017, the Dalian Commodity Exchange launched new soymeal options.
  • In 2016, Henan Province produced approximately 4.38 million MTs of apples. Only Shaanxi Province (~11 million MTs) and Shandong Province (~9.7 million MTs) produced more apples.
  • In December 2014, the Zhengzhou Commodity Exchange announced they would launch evening (21:00 to 23:30) trading for products such as cotton, sugar, and rapeseed meal in order to trade at the same time as New York’s Intercontinental Exchange (ICE).
  • In 2013, China produced 39.6 million MTs of apples, of which, Shaanxi produced 9.4 million MTs or 24% of the country’s total output. The next largest produces were Shandong Province at 9.3 million MTs or 23% of total output, and Henan Province at 4.4 million MTs or 11% of output.
  • In late 2013, the Zhengzhou Commodity Exchange (ZCE) expanded its rice futures contracts from one variety (Indica rice) to three rice varieties (e.g. short-grain rice – Japonica rice and late Indica rice).
  • In late 2012, the ZCE announced plans to expand to include rapeseed and rapeseed meal futures contracts.
  • Founded in 1990, the Zhengzhou Commodity Exchange (ZCE) was the first experimental futures market approved by the Chinese State Council. The listed products on ZCE includes wheat (including strong gluten wheat and hard white winter wheat), cotton, white sugar, pure terephthalic acid (e.g. PET bottles), rapeseed (including rapeseed oil and meal), early long-grain rice, Japonica rice, late rice, cotton yarn, methanol, and other commodities.

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