DCE No.2 Soybeans

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DCE No.2 soybean futures trade on the Dalian Commodity Exchange (DCE). They were launched on September 22, 2004[1]. DCE No.2 soybeans futures contract is for GMO (genetically modified organism) soybeans, which are primarily imports from overseas, and therefore, almost anyone who might be trading this contract is currently trading overseas soybeans futures, like CME Group Soybeans.

Each DCE No.2 soybeans futures contract represents 10 tons of deliverable grade No.2 yellow soybeans, which is defined in accordance with DCE Delivery Quality Standard FB/DCE D001-2005, while substitutions at differentials that meet DCE delivery rules are also good for delivery, and its last delivery date is set as the 3rd day after the last trading day of the delivery month[2].

Each DCE No.2 soybeans futures contract is subject to a margin rate equivalent to seven percent of contract value (e.g., 2251 yuan = 4502 yuan [B901 last price on June 3, 2008] x 10 [tons/contract] x 5 percent) as well as a trading fee of no more than 4 yuan (RMB) / contract.

In 2008, DCE No.2 soybeans futures traded only 85,582 contracts (+113.62 percent YOY) and its turnover amounted to a mere 3.8 billion yuan (+137.97 percent YOY), making it the most inactive (in terms of volume) and smallest (in terms of turnover) futures contract on the DCE.

DCE Monthly Volume by Product.JPG



No.2 Soybeans futures
Exchange Dalian Commodity Exchange
Settlement Physically delivered
Contract Size 10 tons / contract
Pricing Unit 10 yuan (RMB)
Tick Value 10 yuan (RMB)
Contract Months Jan, Mar, May, July, Sep, Nov
Last Trading Day 10th Trading Day of the Delivery Month
Note: This contract is electronic ONLY -- no open outcry
  No Open Outcry Electronic
Trading Hours N/A 9:00 - 11:30 am., 1:30 - 3:00 pm. Beijing time
Ticker Symbol N/A B
Price Limits N/A 4% of last settlement price (temporarily 5%)

References

  1. DCE History. Dalian Commodity Exchange.
  2. No.2 Soybeans. Dalian Commodity Exchange.