Soy Oil Futures to Be Launched Next Monday

Jan.18,2006 China, the world's second-largest soy oil consumer, will launch soy oil futures next Monday in the Dalian Commodity Exchange, a move that is expected to attract more participants and capital to the market.

"The introduction of soy oil futures, which has long been anticipated by crushers and traders, is a boost to the futures market," said Kang Bing, a soybean analyst with Beijing-based Jingyi Futures Co, Ltd.

Trailing only behind the United States for soy oil consumption, China consumed about 7.5 million tons last year, up from 3.67 million in 2002, according to data provided by the Dalian exchange.

"As a major soy oil consumer and producer, soy oil futures is badly needed in China," Kang said.

The launch of soy oil futures in the Dalian exchange, which also trades soybeans and soy meals, means the bourse now has a complete product line on soybean, further strengthening its position as country's biggest agriculture commodity futures exchange.

"It will definitely bring more participants, such as crushers, traders and even distributors, and capital into the market," Kang said.