NSE Launched Futures Contract of Crude Degummed Soybean Oil

The National Stock Exchange of India Ltd (NSE) has launched its first agricultural commodity futures contract on crude degummed soybean oil (CDSO Futures).

It was launched on December 1, an NSE statement said. The CDSO Futures contract is a monthly expiry futures contract with a trading lot size of 10 metric tonne (MT) and price basis as 'Kandla'.

The first trade was executed by 'EAST INDIA SECURITIES LTD' and 'M/s Budge Budge Refineries Ltd', it said. Day one recorded trading of more than 4,200 tonne with turnover exceeding Rs 44.67 crores indicating positive interest of market participants in the CDSO Futures.

With India being the largest importer of edible oils in the world, the CDSO futures contracts shall be a perfect instrument to hedge the price risk for the soybean oils processing and allied industries, the NSE statement said.