The National Commodity & Derivatives Exchange (NCDEX) will launch futures trading in animal feed ‘Hi-pro soybean meal’ on February 17. The basis centre and additional delivery centre for the contract would be Indore and Latur, respectively. The futures contracts, expiring between March and September 2021 will be available for trading at the time of launch.
Vijay Kumar, MD & CEO, NCDEX, said: “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.”
According to the estimate of trade body SOPA, soymeal exports have increased nearly six fold to 3.36 lakh tonne in January 2021, from 58,000 tonne in January last year. Indonesia, France and Germany were among the top buyers of India’s non-GMO soybean meal. Hi-Pro Soybean Meal is an animal feed with protein content of 50% or more as compared with around 46% in normal soymeal. The contract will have a trading and delivery unit of 10 tonne.
“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 price risks in local currency in the extremely volatile domestic and international markets,” said Kapil Dev, EVP – head of business and products, NCDEX.
Soybean is the largest-produced edible oilseed in India, accounting for around 35% of the country’s 30 million tonne oilseed basket. Madhya Pradesh, Maharashtra and Rajasthan are the top three producing states. Crushing of the oilseed gives 80-82% of the meal and rest is the oil.
Indian soymeal commands a premium varying from $25-$50 per tonne over South American peers due to the use of non-genetically modified seed. The 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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