Home » Futures Daily: DCE and the Central Meteorological Observatory jointly carry out the theme of “2022 World Meteorological Day” to promote early warning and early action to avoid risks and promote stability

Futures Daily: DCE and the Central Meteorological Observatory jointly carry out the theme of “2022 World Meteorological Day” to promote early warning and early action to avoid risks and promote stability

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Futures Daily: DCE and the Central Meteorological Observatory jointly carry out the theme of “2022 World Meteorological Day” to promote early warning and early action to avoid risks and promote stability


Recently, DCE and the Central Meteorological Observatory jointly launched the “2022 World Meteorological Day” theme publicity campaign, with the theme of “Early Warning, Early Action”, reminding the public to pay attention to weather changes, be prepared and Be able to take action in advance to reduce the impact on production and life.

According to the reporter of Futures Daily, in recent years, the weather risks caused by extreme weather changes have been increasing, and the losses caused to the social economy have increased year by year, and the weather risks have attracted more and more attention from all walks of life. According to relevant statistics, 30%-50% of the global GDP is exposed to weather risks. In the 1990s, based on the strong demand for climate change and risk management in all walks of life, the international market launched weather indices and their derivatives.

my country has a vast territory and complex and changeable climatic conditions. In recent years, the frequency of extreme weather and climate events and meteorological disasters around the world has been increasing, which has brought many adverse effects on the production and operation of enterprises in agriculture and other related fields. , one of the important constraints of sustainable economic and social development. According to experts, combining weather indices that characterize the strength of weather phenomena such as temperature, precipitation, snowfall, and hurricanes with the derivatives trading mechanism, developing weather derivatives based on weather indices, and transferring weather risks by market-oriented means can be used in the whole society. range to attenuate or offset weather risks.

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Taking temperature derivatives as an example, if farmers are worried about theirsoybeanorcornIn order to avoid risks, you can buy temperature index futures according to your own situation. If there is an abnormally high temperature, the temperature index will rise accordingly, and the corresponding compensation will be obtained after the position is closed, which can hedge the risk of production reduction caused by the high temperature to a certain extent.

In a study of soybean and corn producers in different regions such as Illinois in the United States using temperature index derivatives to hedge their risk performance, some foreign scholars found that purchasing related derivatives can reduce their income risks measured by yield by 10.8%— 46%.

DCE is based in Northeast China, and always regards serving “agriculture, rural areas and farmers” and promoting agricultural development as the foothold to give full play to its market functions. It is understood that as early as 2002, DCE set up a special research and development team, and began to pay attention to, track and study the development of the international temperature index and other weather derivatives. In 2005, DCE signed a cooperation agreement with the Central Meteorological Observatory to further focus on the research and development of weather series indexes and related index derivatives related to the yield of bulk crops such as accumulated temperature, precipitation, and soil moisture. Since then, DCE has continued to deepen the research and development of weather futures. In 2009, DCE cooperated with the Central Meteorological Observatory to complete the compilation of daily average temperature and other indices, which were publicly released on the official website of DCE and China Weather Network. Since DCE signed a strategic cooperation agreement with the Central Meteorological Observatory in 2017, the two sides have carried out a lot of research on the development of weather futures, including the more in-depth and internationally innovative “crop yield meteorological factor series index” cooperative research and development, etc. , in order to ensure the high-quality development of my country’s agriculture, better serve the rural revitalization and the national food security strategy. Since 2021, the two sides have further cooperated to update the temperature fluctuation data of cities in my country for the past 30 years, and to improve the temperature index compilation plan based on refined weather forecasts, which will be released on their respective official websites. As one of the key varieties of DCE’s business expansion into the index sector.

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According to market participants, DCE has in-depth cooperation with the Central Meteorological Observatory to scientifically and rationally design various weather indices and expand the application scope of meteorological information, which can provide relevant industries with a convenient channel to understand weather risks, enhance the awareness of agricultural weather risk management, and provide the next generation. Further exploration and development of corresponding futures derivatives will lay a solid foundation.

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