Abstract

This paper focuses on hog futures and their effects in smoothing price fluctuations in China's hog market. We analyze the reasons for the current market situation in China based on theories of herding development and the cobweb model. We explore hog futures' functions and actual influences. Based on the data from Muyuan, China's largest listed hog enterprise, we examine how hog producers utilize lots to ensure their profits. We make theoretical predictions development of China's hog futures and possible changes in the whole market.

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