Author(s)

Zhihui Li, Xiaoming Guo, Junliang Zhang

Corresponding Author

Zhihui Li

Abstract

Based on the daily data of the egg futures and spot market prices from November 8, 2013 to August 9, 2019, the binary BEEK-GARCH model and DCC-GARCH model were used to analyze the spillover effect and dynamic correlation between the egg futures and spot market, under the policy of the corn temporary storage and direct subsidy. The results show that there are significant two-way mean spillover and fluctuation spillover effects between the egg futures and spot market under the policy of the corn direct subsidy. The futures market plays a leading role in price guidance and information spillover. The correlation coefficient of the egg futures and spot market has obvious time variability, and it is gradually rising after the implementation of the direct subsidy policy. It is suggested to improve the operation mechanism and market monitoring and early warning mechanism of the egg futures market, and establish the guarantee mechanism of "futures + insurance" to reduce the risk of farmers.

Keywords

Eggs, the Futures and spot market, Spillover effects, Dynamic relevance, the Policy of direct subsidies for agricultural products