The Relationship of Commodity Futures Market Price and Spot Market Price

The function of commodity futures market in China was analyzed using empirical research. The relationship between futures price and spot price of corn was also explored using varieties through August2011 to December 2012 data and econometric analysis methods. It was discovered that corn futures price and spot price change trend,in the long-term equilibrium price appeared deviation that can perform certain callback. In addition the spot price will guide the futures price changes. It was also analyzed that the corn test results of cointegration and the extension of Chinese agricultural product futures market and spot market. At last some suggestion are given.