Dalian Commodity Exchange (DCE) has become the world's second biggest agricultural products futures exchange in terms of trading volume, according to new statistics released by the US Futures Industry Association (FIA).

The trading volume of agricultural products on the DCE accounted for 29 percent of the total world volume, behind only the Chicago Board of Trade (CBOT). The Tokyo Grain Exchange was previously ranked the number two agricultural products futures exchange.

The transaction volume of soybean meal on the DCE ranked first among other exchanges in the world. Its corn and soybean trade ranked second and fourth globally.

China's futures exchange market has developed quickly in recent years. Of the 54 futures exchanges globally, the DCE ranked 17th in total goods traded including agricultural in 2007. Its transaction volume of futures products was up 54.23 percent year on year, the FIA said.

Other Chinese commodity exchanges also performed well in 2007. The Shanghai Futures Exchange ranked 27th globally, boosted by a transaction volume that increased 47.25 percent over the previous year.

Central China's Zhengzhou Commodity Exchange in Henan Province, the country's second biggest futures exchange market, ranked 24th.It moved up six places globally compared with 2006. Its transaction volume increased 100.99 percent year on year.

The combined turnover of China's three domestic futures exchanges hit 40.974 trillion yuan (US$5.612 trillion) in 2007, up 95 percent over 2006, according to the DCE.

Analysts attributed the rapid growth of domestic futures markets to fluctuating agricultural product prices in international markets, a surging demand for agricultural products and positive central government policies.

"The government has introduced a series of policies to regulate and supervise its futures commodity markets. This boosted the market's development," said Hu Yuyue, a Beijing Industrial and Commercial University professor.

The DCE was established in 1993. It trades in corn, soybean meal, soybean oil, palm oil and linear low-density polyethylene.

(Xinhua News Agency April 5, 2008)