Minmetals Futures Microservices
Insurance + Futures
On October 31, Minmetals Futures successfully completed the risk hedging of the pig “insurance + futures” project in Changsha County, Hunan in 2022. The project provides price guarantee for 4,980 live pigs in Changsha County, and is expected to pay 309,700 yuan in compensation.
Hunan Province is a major province of pig breeding and transfer. In recent years, with the support of relevant national policies, Changsha County has continuously expanded the scale of pig breeding. In 2021, 664,800 pigs will be slaughtered, with an annual output value of nearly 800 million yuan. However, the main body of live pig farming has been plagued by the “pig cycle” for a long time. Especially since the epidemic, the price fluctuation of live pigs has intensified, which has seriously affected the stable development of the industry and the stable operation of the market.
According to the operating pain points of local breeding entities, Minmetals Futures uses the “insurance + futures” model to diversify the risk of live pig prices to the futures market, providing a more convenient and efficient risk management tool for the local pig industry. The overall operation of the project is good, and the compensation effect is better, which will help to form a good demonstration effect, guide more farmers to scientifically manage business risks through the “insurance + futures” model, and promote industrial upgrading.
Live pigs are the most valuable agricultural and sideline products in my country, and are related to the national economy and people’s livelihood. Minmetals Futures will give full play to its professional advantages, actively promote the “insurance + futures” business, and provide strong support for stabilizing the production capacity of live pigs and helping to ensure stable supply and stable prices.
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