Urea futures will be listed on the Zhengzhou Commodity Exchange on August 9

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Urea futures will be listed on the Zhengzhou Commodity Exchange on August 9. Author/Source: Sinochem News Network Date: 2019-08-06 Clicks: 73 Reporters learned from the Zhengzhou Commodity Exchange that urea futures will begin trading there on August 9 this year. The first batch of urea futures contracts to be listed for trading are UR2001, UR2002, UR2003, UR2004, UR2005, UR2006, and UR2007, with each contract having a listing benchmark price of 1,850 yuan per ton. According to the regulations, on the day urea futures are listed, the price limit is ±8% of the contract’s listing price, and the trading margin is 5%. Regarding fee charges, the fee for trading urea futures is 5 yuan per contract, while the fee for closing positions within the same day is also 5 yuan per contract. The handling fees for urea futures delivery, warrant transfer, and futures-to-spot conversion are charged at 0.5 yuan per ton. It is reported that China is a major country in agricultural production, as well as the world’s largest producer and consumer of urea. Fertilizers are production materials closely related to agricultural products, and are known as the \"food of food\". Fertilizers mainly include nitrogen fertilizers, phosphorus fertilizers, and potassium fertilizers; among them, urea is the most commonly used nitrogen fertilizer and also the largest type of fertilizer. Market experts believe that the introduction of urea futures can provide companies in the upstream and downstream sectors, as well as storage firms and other related entities, with means and tools for determining prices and managing risks, thereby stabilizing their profit levels. Furthermore, farmers and agricultural cooperatives can use urea futures directly or indirectly to hedge risks and protect their incomes.