Leading stock exchange -- the National Stock Exchange (NSE) has said it will launch its first agricultural commodity futures contract for crude degummed soybean oil on December 01. It added that the contract will facilitate the soybean oils processing and allied industries in India and overseas, a perfect hedging tool for managing their price.
The contract is a monthly expiry cash settled futures contract with a trading lot size of 10 metric ton (MT) and price basis as Kandla. Vikram Limaye, MD and CEO of NSE said the exchange is dedicated to deepen the Indian commodity markets by providing convenient and cost-effective onshore hedging products.
He said ‘India being one of the largest consumers of edible oils in the world, requires an efficient hedging mechanism for crude soybean oil as well. This product will work as a perfect price risk management tool for the market participants and the commodity ecosystem at large’.