China’s securities approved an application to launch a hog futures contract

Vastavam web: China’s securities regulator has approved an application from the Dalian Commodity Exchange to launch a hog futures contract, the exchange said in a statement late on Monday, paving the way for major changes to trading in the world’s top pork market.Details on the type of contract and timing for the launch have yet to be decided, an official at the China Securities Regulatory Commission told.The hog futures approval also comes ahead of a long-awaited crude oil futures contract, for which regulatory approval is expected soon.

China consumes about 55 million tonnes of pork a year, half of the global total, but production is highly cyclical. Futures will help pig farmers hedge the risks of price swings in the highly volatile market, the exchange said in its statement.Around 200 companies were producing more than 50,000 hogs a year in 2016, it said, about 8 percent of the national output.