Recently, Shanghai Futures Exchange carried out the final evaluation on the pilot project of "insurance + futures" targeted poverty alleviation of natural rubber. The poverty alleviation project of Hongye futures in Mengla County, Yunnan Province, a national poverty-stricken county, was evaluated by the expert group and won the third prize. Farmers in the county received 699000 yuan as a result of Hongye futures' poverty alleviation measures, with an average of nearly 700 yuan per ton of natural rubber.
Mengla County is located in Xishuangbanna, Yunnan Province, with a rubber planting area of 2212042 mu, a cutting area of 16227920 mu, a dry rubber output of 17371400 tons and an output value of 1.7 billion yuan. There are 17966 poor households engaged in rubber industry and a rubber planting area of 224300 mu. Natural rubber is a pillar industry to support local economic development and promote farmers' poverty alleviation and income increase. Hongye futures' poverty alleviation measures in Mengla County have been strongly supported by Mengla County Government and listed as one of the county's key work in 2019.
The "insurance + futures" targeted poverty alleviation project was implemented in guanlei Town, Mengla County from June 30 to November 15, 2019. It was approved by Shanghai Futures Exchange, with Hongye futures and its subsidiary Hongye capital as the main body of application, jointly underwritten by Anxin agricultural insurance and Pacific Property Insurance, coordinated by Mengla County Government and relevant departments in Yunnan Province, and participated in by rubber farmers in guanlei Town, Mengla County Same as completed.
2019 is a "disaster prone" year for China's natural rubber industry. In the first half of the year, there was a drought that has not been encountered for many years. In addition, the customs carried out a strict inspection on "mixed rubber". In addition, the export reduction of three countries in Southeast Asia and other measures to boost rubber have caused the rubber price to rise, fall back and shock in the industry. In the second half of the year, the market of natural rubber has improved to a certain extent due to the continuous shocks, the traditional consumption peak season of "golden nine silver ten" and the impact of rainstorms and fungal diseases in Southeast Asia. In November, China's domestic region began to enter the cut-off period. At this time, funds gradually favor natural rubber, which rose sharply at the beginning of the last ten days. At last, natural rubber stopped falling and rose. The attention of funds increased greatly, and the market rose strongly. Since then, the trend has fluctuated. After a short-term correction, it began to rise again in December. On the 6th, it reached the highest price level in 2019. However, on the 18th, the price dropped sharply due to the sharp increase of domestic inventory on a month on month basis. It ended in December. 2019 has become a history, and the natural rubber market continues to fluctuate.
After the completion of the project, Hongye futures conducted in-depth investigation and return visit to the local farmers, and learned that under the complex situation, it is difficult for rubber farmers to have a precise judgment on the market, lacking scientific planting planning, "insurance + futures" solved the potential loss caused by price fluctuation for them, and also avoided the unstable supply of spot market and spot enterprises caused by "abandoning cutting" and "late cutting" Negative chain reactions such as increased difficulty in cost accounting will ensure the healthy and stable development of local rubber industry.
2020 is bound to be a bumpy year. Affected by the new crown epidemic, domestic rubber processing plants can't return to work normally for a long time, and the spot market also suffers from the lack of normal liquidity due to the epidemic, which makes the rubber price drop all the way. But fortunately, last year's "insurance + futures" project successfully operated in the local area and achieved good results, which makes rubber farmers not suffer losses. On the other hand, Hongye futures, together with Anxin agricultural insurance and PICC Yunnan branch, plans to continue to implement the "insurance + futures" project of natural rubber in 2020, which has been approved and will be implemented in the near future. This action has greatly improved the confidence of local rubber farmers. At present, the planting of natural rubber in this area has been carried out smoothly. Hongye futures will continue to give full play to its advantages in the local natural rubber planting industry to protect the development of the local natural rubber planting industry and overcome difficulties together.
Nanjing Financial Development Association
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