NSE to launch first agricultural commodity futures contract next month

By: |
November 9, 2020 4:48 PM

Leading stock exchange NSE on Monday said it will launch its first agricultural commodity futures contract for crude degummed soybean oil on December 1.

Rally in Stock Market ContinueNow with Diwali just around the corner, investors must cherry pick their trades so they can reverse the trend and see the returns of their portfolios multiply.

Leading stock exchange NSE on Monday said it will launch its first agricultural commodity futures contract for crude degummed soybean oil on December 1. The contract will facilitate the soybean oils processing and allied industries in India and overseas, a perfect hedging tool for managing their price, the National Stock Exchange (NSE) said in a statement.

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.

“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,” he added.

The Solvent Extractors’ Association of India (SEA) Executive Director B V Mehta said the exchange traded derivatives contracts are a very useful tool that make price risk management convenient and easy for the industry. “More such futures contracts should be launched going ahead so that we can have a vibrant commodity markets ecosystem in India,” he added.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Petrol price crosses Rs 82-mark, diesel above Rs 72 a litre
2NDTV shares: Sebi bars two promoters, other individuals, entities for insider trading activities
3FPI investment crosses Rs 60,000 cr in November; will they pump in more or start pulling away now?