China Has Its Own Apple Launch That's Nothing to Do With IPhones
(Bloomberg) -- They won’t be lining up round the block to get their hands on them, but there’ll no doubt be some buyers keen to snap up China’s new apple futures contracts.
The Zhengzhou Commodity Exchange will list Fuji apple futures on Friday, adding to contracts it already offers including wheat and white sugar, meaning investors could pretty much hedge all the key ingredients of an apple pie. They’ll start trading at 7,800 yuan ($1,184) a metric ton.
The apple contracts will be for delivery in May, July, October, November and December and trading will run from 9 a.m. to 11:30 a.m. and 1:30 p.m. to 3 p.m. local time. Fruit will be 80 millimeters (3.1 inches) or more in diameter, with a 2,000 yuan per ton discount for apples between 75 millimeters and 79 millimeters. China has fresh apple storage capacity of 10 million tons, or about 25 percent of production, according to the Zhengzhou Commodity Exchange.
Apples are the most popular fruit in China and the country is the world’s biggest producer, accounting for more than half of global output. Chinese exchanges this year started options for soybean meal and white sugar and authorities have said they’re studying futures including ginger, hogs and potatoes. Until one of them launches milk futures though, you won’t be able to hedge your custard.
To contact Bloomberg News staff for this story: Niu Shuping in Beijing at firstname.lastname@example.org.
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With assistance from Niu Shuping