In order to adapt to changes in the spot market and futures delivery needs, and further optimize the layout of delivery warehouse and enhance the overall qualification of delivery warehouse, DCE issued the Notice on Adjusting the Ordered warehouse of No.1 Soybeans, Corns and Soybean Oil on June 14 in order to adjust the delivery warehouse of soybeans, corns and soybean oil.
According to the Notice, this adjustment involves a total of 11 ordered warehouses for No. 1 soybean, corns and soybean oil, under which, three ordered warehouses and a standby warehouse have been established. A standby warehouse has been enabled and 6 ordered and standby ones which have no delivery services or initiatively apply for giving up the qualification have been cancelled.
As a result, for No. 1 soybean, the China Grain Logistics Group Beiliang Co., Ltd. has been established as an ordered warehouse, China Shipping Industry Materials Dalian Co., Ltd. has been established as a standby warehouse and the State Grain Reserves Dalian Depot has been enabled as an ordered warehouse. After adjustment, the total capacity of ordered warehouse for Yellow soybean No. 1 has increased by 34.4% with the minimum guaranteed capacity increased by 9%.
As for the corn, the China Grain Logistics Group Beiliang Co., Ltd. has been established and the State Grain Reserves Dalian Depot has been enabled as an ordered warehouse. After the adjustment, the total capacity of ordered warehouse for corn has increased by 25.9% with the minimum guaranteed capacity being increased by 16.6%.
As for the soybean oil, Sinograin Oils (Tianjin) Co., Ltd. and Sinograin Rizhao Grain Reserves have been established as the ordered warehouse. After adjustment, the total capacity of ordered warehouse for soybean oil has increased by 16.6%.
According to the person in charge of the DCE Agricultural Products Division, in past years, the Dalian futures market ran stably and all delivery businesses were carried out smoothly, but there was great change in the spot market of some varieties, especially agricultural products. In this context, in order to further strengthen the management of warehouses, improve their service capacities and better serve for the development of agricultural industry, DCE has strictly followed the regulatory requirements and carried out adjustment in warehouses of agricultural products by taking the new ordered warehouse management system as basis based on the comprehensive review and in-depth analysis on the pattern of soybeans, corn and soybean oil spot market and the history of ordered warehouse.
He also pointed that this adjustment mainly added large enterprises with obvious logistical advantages and strong service capabilities as ordered warehouse and standby warehouse and canceled some warehouses which had no delivery business for many years and initiatively gave up the qualification or were difficult to provide delivery services. In addition, DCE also enabled a standby warehouse according to the delivery characteristics of different product variety. The 4 ordered warehouses newly established and enabled for Yellow soybean No. 1, corns and soybean oil are affiliated companies of large state-owned enterprises, which are characterized by convenient geographical location and advanced logistics facilities. Coupled with the rich experience of these companies in the goods storage and service management, they would be helpful to ensure the stable operation of the futures market and the full play of industrial service functions.
All market participants welcome this adjustment and many members participating in the delivery of the above varieties throughout years believe that the current spot market of No.1 yellow soybeans, corns and soybean oil is running smoothly. As the adjustment mainly focuses on the optimization of warehouse qualification and newly added ordered warehouses are located in the existing delivery region, the market will not be impacted. After the adjustment, the minimum guaranteed capacity of the ordered warehouse for Yellow soybean No. 1, corns and soybean oil has increased significantly, which will improve the delivery service level of the three futures varieties and provide effective services for industry customers to help them better participate in and utilize the futures market and will further contribute to the consolidation of futures and spot market and the full play of advantages of the futures market.