Leading agri-commodity bourse NCDEX on Monday said it will launch futures trading in animal feed 'Hi-pro soybean meal’ on February 17.
The futures contracts in Hi-pro soybean meal, expiring in the months of March to September will be available for trading at the time of the launch.
The contract will have a trading and delivery unit of 10 tonne. The basis centre and additional delivery centre for the contract would be Indore in Madhya Pradesh and Latur in Maharashtra, respectively, the exchange said in a statement.
Hi-pro soybean meal is an animal feed with the high protein content of 50 percent or more as compared with around 46 per cent in normal soymeal.
With the launch of Hi-Pro soybean meal contract, NCDEX Managing Director and Chief Executive Officer Vijay Kumar said the exchange has achieved a key milestone of having all the major tradeable products in soybean complex on the derivatives platform.
"There is no doubt that the contract will replicate the success we have achieved in soybean and refined soy oil futures contracts."
Kumar mentioned that India’s resurgence in the quality-sensitive Asian and European Soybean meal markets, as reflected in the recent spurt in exports, raises the need for domestic producers and exporters to have a proper risk management tool in local currency.
"I am confident this contract will serve the purpose across the Soybean value chain," he added.
According to the trade body Soybean Processors Association of India (SOPA) estimate, India’s soymeal exports have increased nearly six-fold to 3.36 lakh tonne in January this year from 58,000 tonne in the year-ago period.
Indonesia, France and Germany were among the top buyers of India’s non-GMO soybean meal.
India’s importance in the world food and feed market is on the rise.
Our launch of Hi-pro soybean meal contract coincides with the buoyancy in India’s soymeal exports.
The contract will serve the soybean processing industry as the most cost-effective tool to manage their price risks in local currency in the extremely volatile domestic and international markets, Kapil Dev, Executive Vice President, NCDEX said.
Soybean is the largest-produced edible oilseed in India accounting for around 35 percent of the country’s 30-million-metric tonne oilseed basket.
Madhya Pradesh, Maharashtra and Rajasthan are the top three producing states of the soybean.
Crushing of the oilseed gives 80-82 percent of the meal and rest is the oil.
Indian soymeal commands a premium varying from USD 25-50 per tonne over South American peers due to the use of the non-genetically modified seed, the exchange said.
NCDEX already has soybean, refined soybean oil futures contracts in its portfolio and the launch of Hi-pro soybean meal will complete the bouquet of soy complex.
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