NCDEX launches soyabean meal futures

Agri-commodity bourse NCDEX today launched futures trading in soyabean meal, used as animal feed, so as to provide complete hedging to investors.
The exchange already offers futures trade in soyabean and refined soya oil.
NCDEX unveiled futures trade contracts in soyabean meal for delivery in March and April.
The future price of soyabean for March delivery opened at Rs 22,490 per tonne on the first day of trading, rose to the high of Rs 22,800 a tonne and then fell down to the level of Rs 22,740 per tonne at 1300 hours, as per the exchange data.
The spot price of soyabean meal was ruling at Rs 22,800 per tonne today.

"This launch completes the soya basket on the exchange platform... We are encouraged by the continued support of the industry and look forward to a successful launch of the contract," NCDEX Managing Director and CEO Samir Shah said in a statement.

The availability of a national benchmark price will help the entire soya value chain in India, which is the fifth largest producer of soyabean and exporter of soyameal.
The feed industry - poultry, livestock and dairy - will now have an effective tool to manage their price risk and get transparent and relevant price signals.
In the statement, NCDEX said that there has been an erratic production of soyabean in the country, which has led to decline in export of soyabean meal, thereby putting pressure on the oil milling industry who are heavily exposed to price risks.

"The availability of the soyabean meal contract now provides the value chain participants with a complete hedging solution," the exchange said.
The transaction charge is Rs 2 per Rs 1 lakh and has no risk management fee, making it a highly cost effective contract, it added.
Soyabean production is estimated to rebound to 142.23 lakh tonnes in the 2016-17 crop year (July-June) on account of good monsoon, as against 85.92 lakh tonnes in the last year.
Soyabean is grown mainly in the kharif (summer) season.