Leading commodity bourse MCX on Tuesday announced the launch of cotton seed wash oil futures. Each contract will have a trading unit of 5 tonne with a base value quoted in Rupee per 10 kg at Ex-Tank Kadi, Gujarat, MCX said in a statement.
The margin requirement for entering into the contract is approximately 12 per cent, providing participants with affordable access to hedging.
Contracts will be cash-settled, providing greater convenience and efficient opportunity for risk management for participants across the supply chain, the statement added.
According to MCX, the futures trading in cotton seed wash oil will help the cottonseed oil industry, particularly the crushers, who often grapple with price volatility due to fluctuating market dynamics, raw material availability, and unpredictable international trend.