Commenting on the launch, Mr. Vijay Kumar, MD & CEO, NCDEX, said, “With the launch of hi-pro soybean meal contract, we have achieved a key milestone of having all the major tradeable products in soybean complex on our derivatives platform. There is no doubt that the contract will replicate the success we have achieved in soybean and refined soy oil futures contracts.”
“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,” Vijay Kumar said.
According to the trade body SOPA’s estimate, India’s soymeal exports have increased nearly six-fold to 3.36 lakh MT in January 2021 from 58,000 MT in January last year. Indonesia, France and Germany were among the top buyers of India’s non-GMO soybean meal.
Hi-pro soybean meal, as the name suggests, is an animal feed with high 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 MT.
“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 their price risks in local currency in the extremely volatile domestic and international markets,” said Mr. Kapil Dev, EVP head of business & products, NCDEX.
Soybean is the largest-produced edible oilseed in India accounting for around 35% of the country’s 30-million-metric tonne oilseed basket. Madhya Pradesh, Maharashtra and Rajasthan are the top three producing states of the soybean. 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 MT over South American peers due to the use of non-genetically modified seed.
