RCX submits fresh application for soybean oil contract

In the wake of removal of ban on soybean oil futures trading, Rajkot commodity exchange (RCX) has moved a fresh application to Forward Market commission (FMC) to start soybean oil future contract.

Commodities market regulator FMC had banned futures trading in soybean oil last year to control rising prices of the commodity. RCX, which is known for its castor futures contract, had applied for launching soybean oil contract but it had to drop the idea due to ban on the futures trading of soybean oil.

With the lifting of the ban on soybean oil futures, the exchange has submitted a fresh application seeking permission to start soybean oil contracts at the exchange.

"Initially, we are expecting a volume of about 10,000 tonnes per day in soybean oil future contract if the permission is granted", said Rajubhai Pobaru, president, RCX.

RCX also have applied to FMC for new contracts in palmolein, soybean, cotton and cotton cake. However, the exchange wants to focus more on castor and soybean oil. "Exchange is hopeful of getting FMC permission for soybean oil contract within three months. In castor exchange have a turnover of Rs.10 to Rs. 15 crore a day.", said P. B. Pathak, Executive Director of RCX. Currently, spot prices of soybean oil are hovering around Rs. 470 per 10 kg.