Newspaper article THE JOURNAL RECORD
China Could Benefit from Futures Trading
In recent years, China has increased its grain production and is becoming a bigger exporter on the world markets.
But whether importing or exporting, China definitely could benefit from the price protection afforded by the futures market, said Pat Catania, vice president for education at the Board of Trade.
Commodity merchants can minimize their risks by buying or selling grain, livestock, gold, oil and a variety of other products at a fixed price for future delivery.
The agreement, signed late in April in Peking by Board of Trade Chairman John F. Gilmore, merely sets up an exchange of delegates beginning later this year to learn more about each country's marketing practices.
""But the objective of the board is always to increase its utilization,'' said Catania.
Under the agreement, each year the Board of Trade and China will exchange delegates and officials for week-long educational institutes.
The agreement demonstrates China's ""tremendous interest in agriculture and financial futures and options,'' Gilmore said in a statement.
""China is one of the world's largest importers and exporters of grain,'' he noted. The country's International Trade Research Institue ""has a great need for increased information on our markets and we need to learn more about their market needs and participation in international exchanges. …