In less than five months, China’s apple futures have fueled a “speculative boom” among investors, with the highest daily turnover reaching 616.3 billion yuan ($96.65 billion). Chang Qichao is an apple dealer in Lingbao, central China’s Henan province. He has paid close attention to the changes in the price of apple’s futures recently…Full Article: China Daily May 2018

Key Point

  • On 16 May 2018, Zhengzhou Commodity Exchange (ZCE) recorded its most active day in apple futures contracts as the trading volume for that day was larger than China’s annual apple output.

ChinaAg Comments

  • In early February 2018, 26 apple growers in Shaanxi Province reportedly received CNY 94,000 (USD 14,870) [~USD 572 per household] in compensation as part of an “insurance plus futures” hedging project. The project, headed by an insurance and a futures firm, compensated grows as the market price for apples fell below the target price.
  • In 2016, China produced 43.8 million MTs of apples on roughly 2 million hectares of orchards.
  • In December 2017, the Zhengzhou Commodity Exchange (ZCE), Henan Province, launched the world’s first apple futures contracts. The minimum trading unit was 10 MTs of apples.
  • In 2016, China produced 43.8 million MTs of apples on roughly 2 million hectares of orchards. Regionally, the top producers were Shaanxi Province (~11 million MTs), Shandong Province (~9.7 million MTs), and Henan Province (4.38 million MTs).
  • 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, apples, methanol, and other commodities.

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