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Dalian Commodity Exchange prepares to launch live pig futures


China’s Dalian Commodity Exchange is preparing to launch the long-awaited future contracts for live pigs to help farmers and traders hedge risks in the world’s largest live pig industry, said Li Zhengqiang, the chairman of the Dalian Commodity Exchange, at a corn industry conference in the city of Dalian on Wednesday.

China Pork prices surged 46.7 per cent from a year earlier in August, according to data released by China’s National Bureau of Statistics, while live pig prices doubled in September from a year earlier, according to China’s Ministry of Agriculture.

Former CSRC chairman Shang Fulin in March warned one major obstacle remains, because live pigs in China vary greatly in size and weight, making it hard to standardise contracts and delivery.

“In the US, large scale pig farming ensures that a pig’s weight is generally within a range of 180 to 210 pounds (82kg to 95kg), but in China, a pig’s weight can range from anything from [90kg to 140kg] – making it hard for standardised contracts,” said Shang.