China’s Zhengzhou Commodity Exchange has begun trading the world’s first apple futures contracts, according to media reports.
Fuji apple futures were listed on the exchange late last month, with fruit trading at RMB7,800 (US$1,184) per tonne.
As the world’s largest apple producer and consumer, pricing in China is heavily dictated by market demand.
Fang Xinghai, deputy head of the China Securities Regulatory Commission, told China Daily the futures market had the potential to make pricing more transparent, helping growers hedge against market fluctuations and deliver a stable source of income for farmers in impoverished regions.
Fang added there was a strong onus on the Zhengzhou exchange to closely regulate trading.
Bloomberg reports the apple contracts will be ready for delivery in May, July, October, November and December.
