[Photo/Piao Feng]
In a landmark event, 5,000 tons of Brazilian soybeans have been dispatched from the bonded trading warehouse of Liaoning Port Co Ltd, under the supervision of Dayaowan Customs, part of Dalian Customs.
This event marked the successful completion of China's first offshore trading of futures-to-spot soybean imports in Jinpu New Area in the city of Dalian.
The transaction involved Changchun Soybean Technology Co Ltd, a subsidiary of Jiusan Group, as the buyer and Liaoning Port Co Ltd as the seller. After reaching an agreement, both parties bought and sold futures contracts for the ‘Yellow Soybean No. 2’ futures on the Dalian Commodity Exchange. They then converted their respective futures positions into spot positions at the Qianhai Mercantile Exchange, completing the spot trading of imported soybeans.
Liaoning Port Co Ltd is one of the four primary bonded trading warehouses for imported soybeans in China and the only one in the north of the country. Using the bonded trading warehouse as a domestic storage facility allows imported soybeans to bypass the need for a predetermined processing facility before customs clearance. Instead, they can be transferred and distributed upon entering the warehouse.
This new policy has revolutionized the traditional import purchase and sale model for agricultural products, significantly improving circulation efficiency.
In the futures-to-spot business model, enterprises can open and close positions through direct negotiation based on spot trading conditions. This method removes the necessity for transaction parties to engage in centralized matching transactions on the futures exchange, thereby saving market marking costs and avoiding the risks of 'slippage' associated with centralized trading.
