In order to cope with fluctuations in agricultural prices, we can also try futures, such as onions.

Agricultural products market has a long-term significant feature: price volatility is intense and presents a certain periodicity. In addition to the well-known "garlic you ruthless", "ginger you army", "beans you play" and "forward onion", the price of fruit market in recent years, "roller coaster" market has also attracted widespread attention, such as "Ping what", "banana people worry".

In the process of "roller coaster" of agricultural product prices, excessive price increases often cause consumers to complain, while excessive price falls will spoil farmers. Due to the lack of appropriate means of hedging, farmers often have to face the dilemma of "slow sales" of agricultural products during the fall in agricultural prices. For example, in 2011, potato producing areas suffered a large loss, bananas in Hainan Province were unsalable, bananas, red tips, grapes and lychees in Guangxi were difficult to sell, and the discount was serious.

Behind these large fluctuations in agricultural prices, hot money is often one of the main drivers of price fluctuations. As we all know, garlic market often shows astonishing growth and decline under hot money and speculation. In addition, there is a similar situation in the apple market. Whenever the price of Apple reaches a historic high, some pigs and garlic collectors rush to buy apples, but when the price falls, these funds have disappeared. In this process, once the peasants make a wrong judgment, they will face the result of losing their blood.

From the point of view of economic cycle, under the background of market economy, the emergence of the sharp rise and fall of agricultural products has its complex and diverse causes. This includes not only the pattern of supply and demand, but also the macroeconomic cycle and financial sentiment.

From the point of view of market response, the current spot market mainly adopts the electronic commerce mode with the characteristics of forward trading to avoid price risk. For growers and businesses, the number of scheduled models is basically fixed. However, the price is not fixed in the agreement, which depends on the scale of fresh production and market conditions. Therefore, the forward model will not change the cycle of price fluctuation. Once the output of an agricultural product fluctuates sharply in a certain year, such as a sudden large increase or decrease in output, the sharp price fluctuations will also be inevitable.

Price fluctuation of agricultural products involves all kinds of main bodies in the market. These main bodies should make decisions by camera and actively manage the risk of price fluctuation. Relevant departments or industry organizations can give full play to their own advantages to guide and supervise. One of the important points is to learn to use futures markets with dual functions of price discovery and risk management.

In recent years, with the gradual promotion of the "insurance + futures" model and the recognition and application of the market, farmers and government departments, the price risk management model of agricultural products linked to futures products has gradually matured.

Compared with the forward trading mode mentioned above, commodity futures have unique advantages in terms of credit performance. The non-standardized contracts negotiated by the buyers and sellers of forward transactions have high credit risk for the purpose of commodity delivery. The futures market does not aim at the delivery of commodities, has the guarantee of performance of the exchange, and mainly aims at managing and avoiding the fluctuation of commodity prices.

With the continuous progress of storage and logistics technology, the variety of agricultural futures is also constantly enriched, which provides basic tools for the price hedging of agricultural products. For example, the egg futures listed on the Dalian Commodity Exchange in 2013, the first generation of fresh futures, and the apple futures and jujube futures listed in the listing plan launched by Zheng Shang Suo in recent years. With the gradual improvement of the scale of domestic agricultural products planting, the increasing financial awareness of farmers, breakthroughs in logistics and warehousing technology, fresh futures of agricultural products or a wide range of "blossom", some insiders suggested that potatoes, onions and other products can also try to launch futures products.