Actual problems of innovative economy

The journal is added to the the List of printed scientific professional publications in the field of economic Sciences by the Ministry of education and science of Ukraine from 11.07.2016 No. 820
The journal is indexed in the International Scientific Center of Index Copernicus International
The journal is included in the list of printed scientific professional publications of category «Б» in the field of eco-nomic sciences by the order of the Ministry of Education and Science of Ukraine dated 28.12.2019 № 1643

The problem of grain futures functioning at the insurance market in Ukraine

УДК: 330.334:339.172:303.72

DOI: https://doi.org/10.36887/2524-0455-2020-3-14

Reznik N.,
доктор економічних наук, професор, завідувач кафедрою
менеджменту ім. проф. Й.С. Завадського, Національний університет біоресурсів і
природокористування України,
ORCID ID: 0000-0001-9588-5929
Yarmoliuk А.,
аспірант, Уманський державний педагогічний
університет ім. Павла Тичини,
ORCID ID: 0000-0003-1326-0779

Abstract.

Introduction. The article proves the need to create markets for the main types of agricultural products in the agro-industrial complex, as a result of which their activities are based on modern infrastructure and markets, therefore, the futures market will help buyers and sellers to insure their price risks. Moreover, fluctuations in world markets will not particularly affect the income of farmers and the agricultural sector of our country in general. Farmers will gain confidence in their income for the year, and they will not be so worried about losing the “good” price, because all their possible losses or theoretical income will go to a futures contract to speculators.

The purpose of this work is to study the problems of grain futures at the insurance market in Ukraine in modern conditions and prospects for their solution.

Results. The methodological basis of the study is the current legal framework, legislation, regulations, instructional materials, special literature. General scientific methods of analysis and synthesis, induction and deduction, ascent from the abstract to the concrete are used in the article, as well as specific methods of analysis. The possibility of delivery or receipt of cash, which helps the market to properly assess the futures on the cash market at the end of the contract is proved, ie at this time the prices in the futures and cash markets converge. It is highlighted that this process makes hedging an effective way to protect against adverse price changes in the real market, and the lack of supply in this case should not cause distrust of the tool as a whole. Conclusions. Problems of risks insurance of price change for grain by means of futures contracts are considered. In modern conditions, the use of financial instruments to ensure the price risks of grain is becoming increasingly important, in this context, the basic principles and the possibility of their use in modern economic and legal components in the country are analyzed. In modern conditions, we can talk not only about the impact of stock exchange futures on spot prices in the country, but also about the impact of spot prices on futures.

Keywords: futures, futures market, grain futures, world market, insurance market.

References.

  1. Black, D. (1995). Success and failure of futures contracts: Theory and practice. Materials of Chemonix.
  2. Goss, B. A. (1981). «The Forward Pricing Function of the London Metal Exchange». Applied Economics. №13, 133-150.
  3. Fama, F. (1970). «Efficient Capital Markets: A Review of Theory and Emperical Works», Journal of Finance. № 25, pp. 383-417.
  4. Belikova, A. (2008). «Trading on world exchanges, fantasy or reality». Fondovyj rynok. № 10, рр. 23-24.
  5. Exchange business / Halanov, A., Bass, А. І. (еd). (2001). Finance and Statistics. Moscow. Russia.
  6. Burenin, A. N. (1995). Futures, forward and options markets. [Futures, forward and options markets]. Trivola. Russia.
  7. Vasiliev, G. A., Kameneva, N. G. (1991). Tovarnyye birzhi. [Commodity exchanges]. Higher school. Moscow. Russia.
  8. Voskobiynyk, Yu. P. (2007). Organization and efficiency of exchange trade in agricultural products in Ukraine. [Orhanizatsiia ta efektyvnist’ birzhovoi torhivli sil’s’kohospodars’koiu produktsiieiu v Ukraini]. Abstract of Ph.D. Thesis.
  9. Galushko, P., Kovtun, O. A. (1995). «Pricing and marketing in agro-industrial complex of developed countries». Ekonomika APK. № 9, рр. 89-93.
  10. Gnoevy, V. G. (2002). «Theoretical principles of market formation of futures contracts for agricultural products». Regional prospects. № 1, pp. 87−89.
  11. Golomsha, N. E. (2009). «Competitiveness of grain in the agricultural market». Ekonomika APK. № 12, 83-87.

The article was received 02.05.2020