FMC not to allow launch of Aug'13 soyabean/soyameal contract

Move taken to curb excessive volatility in prices of the two commodities during the lean months

In order to curb excessive price volatility in lean months, commodity markets regulator FMC has decided not to permit the launch of the August 2013 contract in soyabean and soyameal futures trade.

While soyabean is used for extraction of edible oil, soyameal is used as animal feed.

Retail prices of edible oils have come under pressure in view of possible drop in production of oilseeds following poor monsoon. Deficit rain has also led to livestock feed and fodder shortages.

Against this background, the Forward Markets Commission (FMC) has "decided not to allow launch of August 2013 in soyabean and soyameal contracts."

The step has been taken to curb excessive volatility in prices of these two items during the lean months, the Commission said in a directive to MCX, NCDEX, ACE and NBOT.

As per the Agriculture Ministry data, oilseeds acreage has dipped to 16 million hectare till August 17 of the ongoing kharif season from 16.73 million hectare in the same period last year.

On NCDEX, the country second biggest commodity bourse, soyabean prices were ruling firm at Rs 3,990 per quintal in the October 2012 contract.

FMC has been keeping a close watch on price movement of agriculture commodities against the backdrop of deficit monsoon. It has also taken a slew of measures to check speculation.