The National Commodity and Derivatives Exchange (NCDEX) has launched NCDEX SOYDEX, the bourse's second sectoral agri-index futures contract. NCDEX SOYDEX is a price-based index that tracks price movement in the futures contracts of its underlying, Soybean and Refined Soy Oil, on a real-time basis. The exchange said this is the second successive offering in the sectoral indices in agri-commodities basket, the first being the NCDEX GUAREX that was launched on August 16.
The weightage of Soybean and Refined Soy Oil in the new index will be 67.92 per cent and 32.08 per cent, respectively. Launch of NCDEX SOYDEX futures contract comes as the oil seeds segment has been experiencing volatility due to global and domestic fundamentals. NCDEX SOYDEX comprises Soybean and Refined Soy Oil, both these commodities are at the threshold of the new season.
NCDEX Managing Director and Chief Executive Officer Arun Raste said ‘We are confident that the contract will evoke a very good response and soon become one of the well participated contracts in line with the underlying’. India produces around 10-12 million tonnes of soybean annually, and Madhya Pradesh and Maharashtra are the top two producing states together accounting for 70-75 per cent of the country's output. In the current oil year ending October, India's Soymeal exports are likely to reach nearly 2 million tonnes.