Analysis of the Impact of the Covid-19 on Agricultural Product Futures and Prospect

Abstract

Although COVID-19 has come to an end for a few years, the impact that it has on the economic market cannot be ignored. This paper analyzes the effect of COVID-19 on agricultural product futures in the United States market. And mainly analyze the price changes of agricultural product futures and the correlation between the different futures during and after the pandemic. In addition, this paper also discusses how to reduce risk with the hedging method. Moreover, the article also explores future research directions, including deepening research on hedging strategies. From the analysis, it seems that the pandemic enhanced the volatility of the price of agricultural product futures. And affected the price correlation between each two futures contracts. After analyzing various data on agricultural product futures, there is an opportunity for investors to hedge risk hedging. However, A good commodity price hedging strategy needs to be fully analyzed and timely adjusted according to market conditions to achieve the goal of better risk control and maximization of returns.