Soybean meal, as the largest and most active agricultural product futures in China, involves a wide range of industries and a wide range of industries. After the Sino US trade friction, the raw material cost of soybean meal has risen, and the price fluctuates greatly. It is important to explore the impact of trade friction on the price discovery function of Chinas soybean meal futures, which will improve the efficiency of Chinas soybean meal futures market and promote it to better serve the real economy. significance. This article compares the discovery function of soybean meal futures market before and after the Sino US trade friction, and analyzes the reasons for the difference. Co integration test, causality test, variance decomposition, and PT IS model are used to analyze the soybean meal futures and spot prices from 2014 to 2020. The empirical results show that, in general, the soybean meal futures market plays a leading role in the price discovery process, but trade The price discovery function in the period after the friction occurs is relatively weaker than in the previous period. Finally, specific suggestions are put forward in terms of improving the structure of market participants and the information disclosure system. Zhang Jiayu | Zhang Yuan "Analysis of Soybean Meal Price Discovery Function in China" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd47601.pdf Paper URL : https://www.ijtsrd.com/home-science/food-and-nutrition/47601/analysis-of-soybean-meal-price-discovery-function-in-china/zhang-jiayu
International Journal of Trend in Scientific Research and Development (IJTSRD)
Volume 5 Issue 6, September-October 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470
@ IJTSRD | Unique Paper ID – IJTSRD47601 | Volume – 5 | Issue – 6 | Sep-Oct 2021
Page 1251
Analysis of Soybean Meal Price Discovery Function in China
Zhang Jiayu
1
, Zhang Yuan
2
1Postgraduate Student, Majored in Securities and Futures,
2Postgraduate Student, Majored in Political Economy,
1,2School of Economics, Beijing Wuzi University, Beijing, China
ABSTRACT
Soybean meal, as the largest and most active agricultural product
futures in China, involves a wide range of industries and a wide range
of industries. After the Sino-US trade friction, the raw material cost
of soybean meal has risen, and the price fluctuates greatly. It is
important to explore the impact of trade friction on the price
discovery function of China's soybean meal futures, which will
improve the efficiency of China's soybean meal futures market and
promote it to better serve the real economy. significance. This article
compares the discovery function of soybean meal futures market
before and after the Sino-US trade friction, and analyzes the reasons
for the difference. Co-integration test, causality test, variance
decomposition, and PT-IS model are used to analyze the soybean
meal futures and spot prices from 2014 to 2020. The empirical results
show that, in general, the soybean meal futures market plays a
leading role in the price discovery process, but trade The price
discovery function in the period after the friction occurs is relatively
weaker than in the previous period. Finally, specific suggestions are
put forward in terms of improving the structure of market participants
and the information disclosure system.
Keywords: soybean meal futures; price discovery function; trade
friction; common factor model
How to cite this paper: Zhang Jiayu |
Zhang Yuan "Analysis of Soybean Meal
Price Discovery Function in Chin