NCDEX introduces direct delivery refined soy oil futures

National Commodity & Derivatives Exchange Limited (NCDEX), the leading commodities and derivatives exchange today said it has introduced direct delivery refined soy oil futures contract with modified contract specifications.

The contract specification has been modified to help the buyers and sellers conveniently trade on the exchange. The exchange is offering contracts expiring in July 2014, August 2014 and September 2014 for trading, NCDEX said in a statement.

The exchange has empanelled National Collateral Management Services Ltd for testing the parameters as per contract specifications of soya oil under direct delivery mechanism at specified delivery centers.

Seller can get the goods pre-tested from the empanelled assayer before tendering physical delivery as a precaution.

"NCDEX has introduced products as per the requirements of market participants. Enhancing the contract specifications of this contract will be a win-win deal for both the buyers and sellers.

"We have made this product delivery friendly which will ensure better price discovery as compared to the earlier model of intention matching. Reducing the lot size to 5 MT would help in increasing participation from the smaller clients," NCDEX MD & CEO Samir Shah said.

Introduction of direct delivery mechanism will make the contracts more aligned to international contracts which are also deliverable. It will help in delivering goods from seller's premises without bearing the high costs of storage and other operational costs, it said.