NSE starts 1st agricultural commodity futures contract

New Delhi: Leading stock exchange NSE on Wednesday said it launched its first agricultural commodity futures contract on crude degummed soybean oil on December 1.

The contract will facilitate the soybean oils processing and allied industries in India and overseas, a perfect hedging tool for managing their price.

The contract is a monthly expiry futures contract with a trading lot size of 10 metric tonne (MT) and price basis as Kandla, the National Stock Exchange (NSE) said in a statement.

The first trade was executed by East India Securities Ltd and Budge Budge Refineries Ltd, one of the premier edible oil refiners.

According to the exchange, day one recorded trading of more than 4,200 tonne with turnover exceeding Rs 44.67 crore indicating positive interest of market participants in the CDSO Futures.