National Commodity & Derivatives Exchange Limited (NCDEX) will relaunch futures contracts in hi-pro (high-protein) soyabean meal from February 17.
The monthly contract will be available for trade from March to September.
The launch of a futures contract for soyameal provides a synergy for the agri-commodity exchange, which has active contracts for soyabean and soya oil.
As per market sources, a standardised contract and the synergy between the three contracts will benefit primarily the soyabean processors by allowing them to lock the spread and use hedging mechanisms for input and output.
“This is a modified contract from the earlier yellow soyabean meal contract. Soyabean meal containing 50% or more protein is called as Hi-pro Soyabean meal. Soya meal market is slowly moving towards high protein soyameal and based on the market trend and feedback from trade participants, Exchange has modified the specification to Hi-pro quality,” informed a source at NCDEX.
The minimum initial margin required is 10 per cent. The unit of trade and delivery unit is 10 tonnes and the ticket size is ₹10 per tonne. “This is a compulsory delivery contract,” the source added. The delivery centres are Indore in Madhya Pradesh and Latur in Maharashtra. Upon the expiry of the contract, all the outstanding open position shall result in compulsory delivery.
On expiry, the futures price will be matched and settled at the cut-off price of the spot market.