China’s securities regulator has given approval to the Zhengzhou Commodity Exchange to trade futures contracts in rapeseed and rapeseed meal, a move aimed at helping companies manage price risks. The Zhengzhou Commodity Exchange plans to introduce rapeseed futures and rapeseed meal futures starting on Friday [Dec 31, 2012].
The exchange said the benchmark price of the first rapeseed futures will be 5,000 yuan ($793.9) a metric ton, and for rapeseed meal futures, it will be 2,360 yuan [US$379] a metric ton. The contract units of rapeseed futures and rapeseed meal futures have both been set at 10 tons. The contracts will help companies hedge against price fluctuations at a time of increasing market risk and imports, the China Securities Regulatory Commission said.
China’s rapeseed output this year fell 9.1% to 12.2 million tons from a year earlier, the China National Grain and Oils Information Center said last month.