The introduction of cotton seed wash oil futures was announced by the top commodities exchange, MCX, on Tuesday. According to a statement from MCX, each contract will have a trading unit of five tonnes, with a base value quoted in rupees per ten kilograms at Ex-Tank Kadi, Gujarat.
Participants have inexpensive access to hedging because the contract requires a margin of about 12% to enter into. According to the announcement, contracts would be paid in cash, giving supply chain members more convenience and effective chances to manage risk.
The cottonseed oil business, especially the crushers, which frequently struggle with price volatility owing to shifting market dynamics, raw material availability, and unexpected international trends, will benefit from futures trading in cotton seed wash oil, according to MCX.
