Core Viewpoint - The increasing geopolitical conflicts, differentiated economic recovery, and rising protectionism have led to significant volatility in commodity prices, creating unprecedented uncertainty for businesses. In this context, the futures market is becoming a crucial anchor for companies to stabilize costs and manage operational expectations [1][2]. Group 1: Futures Market Functions - The futures market provides three core functions: price discovery, risk management, and resource allocation, which help businesses cope with uncertainty by transforming unpredictable absolute price risks into relatively controllable basis risks or cost-defined business models [2][3]. - A case study involving a large state-owned cable company illustrates how customized solutions, such as a "floating quantity, fixed price" copper trading scheme, can stabilize production costs and enhance operational predictability amid market fluctuations [2][4]. Group 2: Challenges in Risk Management - Companies face significant challenges in utilizing futures tools for risk hedging, including mismatched price structures where some agricultural products exhibit a "spot premium, futures discount" scenario, leading to potential losses for producers [3][5]. - The lack of professional teams and the inability to grasp hedging opportunities further complicate the situation, as standardized futures contracts often do not meet the specific needs of businesses regarding quality, delivery location, and procurement timing [3][5]. Group 3: Service Model and Solutions - Hongyuan Futures has developed a service model centered on "standardized systems + professional manuals + scenario-based implementation," facilitating the transition from risk avoidance to risk management for enterprises [4][6]. - The company has successfully implemented full-process services, such as "options + delivery" for ethylene glycol and "circuit breaker cumulative put options" for cotton, demonstrating effective risk mitigation strategies [4][6]. Group 4: Market Adaptation and Recommendations - There are three main areas where the futures market needs to improve its adaptability to better serve the real economy: 1. Addressing the gap between available futures products and actual business needs, particularly in emerging sectors like renewable energy [5][6]. 2. Enhancing the market ecosystem to increase participation from industrial clients and improve the integration of futures and spot markets [5][6]. 3. Transitioning futures companies to become "risk management intermediaries" by investing in research and talent to better meet the diverse needs of businesses [6][7]. Group 5: Education and Perception - Many companies still perceive the futures market as high-risk due to misunderstandings about trading mechanisms, the amplification of negative speculative cases, and insufficient investor education [6][7]. - Hongyuan Futures is addressing these issues by enhancing educational initiatives, focusing on positive case studies, and improving the understanding of risk management value in futures trading [7].

Core Viewpoint - The article emphasizes the increasing importance of the futures market as a "key anchor" for enterprises to stabilize operational expectations amid rising commodity price volatility and economic uncertainties [1][2]. Group 1: Market Context - The year has seen heightened geopolitical conflicts, differentiated economic recovery, and a rise in protectionism, leading to significant volatility in commodity prices [1][2]. - Enterprises are facing unprecedented uncertainty, making the demand for stable operational expectations and market risk management more urgent than ever [2][4]. Group 2: Futures Market Functions - The futures market provides three core functions: price discovery, risk management, and resource allocation, which help enterprises manage uncertainties [2][4]. - While the futures market cannot eliminate price volatility, it can transform unpredictable absolute price risks into relatively controllable basis risks, thereby stabilizing business expectations and investment confidence [2][4]. Group 3: Case Studies - A large state-owned cable company utilized a "floating quantity, fixed price" copper trading scheme to lock in procurement costs, stabilizing production plans and profit expectations despite market price fluctuations [3]. - In a volatile cotton market, a customized "circuit breaker cumulative put option" allowed a client to secure high selling prices and receive cash compensation, effectively mitigating price decline risks [6]. Group 4: Challenges in Risk Management - There are significant mismatches between market offerings and enterprise needs, such as price structure contradictions and a lack of tailored risk management solutions [4][7]. - Many enterprises lack professional teams to effectively utilize hedging tools, and standardized futures contracts often do not meet their specific requirements [4][7]. Group 5: Recommendations for Improvement - The article suggests accelerating product innovation and optimizing contract designs to better align with enterprise needs, particularly in emerging sectors like renewable energy [8]. - It also recommends enhancing market ecology by fostering industry client participation and improving the integration of futures and spot markets [8]. - Futures companies should transition to "risk management intermediaries" by investing in research and talent to better serve the diverse needs of enterprises [8]. Group 6: Perception Issues - Many enterprises still perceive the futures market as high-risk due to misunderstandings about trading mechanisms and the amplification of negative speculative cases [9]. - To address these issues, the company is enhancing investor education by sharing positive case studies and focusing on the value of risk management through futures [9].

Core Viewpoint - The volatility of commodity prices has significantly increased this year due to geopolitical conflicts, uneven economic recovery, and rising protectionism, creating unprecedented uncertainty for businesses. In this context, the futures market is becoming a crucial anchor for companies to stabilize costs and manage expectations [1][2]. Group 1: Futures Market Functions - The futures market provides three core functions: price discovery, risk management, and resource allocation, which help businesses cope with uncertainty by transforming unpredictable absolute price risks into relatively controllable basis risks [2][4]. - A case study involving a large state-owned cable company illustrates how customized solutions, such as a "floating quantity, fixed price" copper trading scheme, can stabilize production costs and enhance profit expectations despite market volatility [3][5]. Group 2: Challenges in Risk Management - Companies face significant challenges in utilizing futures tools for risk hedging, including mismatches between market structures and actual needs, such as certain agricultural products showing a "spot premium, futures discount" scenario [4][8]. - Many businesses lack professional teams to effectively manage hedging opportunities and often find standardized futures contracts inadequate for their specific requirements [4][8]. Group 3: Recommendations for Improvement - To address existing issues, it is recommended to accelerate the innovation of futures products and optimize contract designs, particularly in emerging sectors like renewable energy [9]. - Enhancing the market ecosystem by fostering industry client participation and improving the integration of futures and spot markets is essential for better functionality [9]. - Futures companies should transition towards becoming "risk management intermediaries" by investing in research and talent to better meet the evolving needs of businesses [9]. Group 4: Education and Perception - There is a prevalent misconception among companies regarding the high risks associated with the futures market, often stemming from misunderstandings of trading mechanisms and a lack of investor education [10]. - To reshape corporate perceptions, companies are implementing educational initiatives that focus on the value of risk management and the benefits of futures as a hedging tool [10].