CONTRACT SPECIFICATIONS

Ticker Additional Delivery

Commodity Symbol Basis Delivery center Logic

Hipro SBMEALIDR Ex- Latur (within a radius of 50 km from the Compulsory Commodity at a Glance
Soybean warehouse municipal limits) Delivery
Meal Indore Location Premium/Discount as notified by the
Exchange from time to time. NCDEX Hipro Soybean Meal Futures
Quotation/ Trading and Position Limits
base value GST Delivery Unit Tick Size Expiry date Aggregate Near Month

Rs. per MT Exclusive 10 MT Rs. 10 per 20th of the Member Client Member Client
MT delivery month 6,70,000 67,000 1,67,500 16,750

Moisture : 11% Max

Protein: 50% Min
Oil: 1.5% Max
Fiber: 4% Max
Sand/Silica: 1% Max
Urease (by EEC method): Min 0.05 mgN/g/Min, Max 0.30 mgN/g/Min Units (By EEC Method)
Quality Indian solvent extracted toasted with pure yellow Soybean meal.
Specifications
No Red / Black / Over toasted / Sweepage / Admixtured / Contaminated or water damaged
Soybean Meal will be accepted.
Free from pesticide (especially organochlorine compound group e.g. DDT, dieldrin including
aldrin and heptachlor)
Free from poisonous seeds and/or foreign seeds, free from castor seeds and/or husk, free
from lumps, free from weevils, free from urea and/or other chemical substance.

For detailed contract specifications visit website www.ncdex.com

Benchmark Futures contract for Hipro Soybean Meal

Hedging and price risk management tool for value chain
Efficient and transparent price discovery
Robust delivery mechanism
Connects the entire value chain

National Commodity & Derivatives Exchange Limited

CIN: U51909MH2003PLC140116
Ackruti Corporate Park, 1st Floor, Near G.E.Garden, L.B.S. Marg, Kanjurmarg (West), Mumbai - 400 078
T : (+91-22) - 66406789 | F : (+91-22) - 66406899 | Toll Free : 1800 26 62339 | E-mail: askus@ncdex.com | www.ncdex.com

TrustNCDEX @ncdex /TrustNCDEX LinkedIn

Disclaimer: Trading in commodities contracts is subject to inherent market risks and the traders/investors should understand and consult their
brokers/financial advisers before trading/investing. The content in this notice are for guidance only and should not be treated as re-commendatory or
definitive. NCDEX or their affiliates, associates, representatives, directors, employees or agents shall not be responsible in any manner to any person
or entity for any decisions or actions taken on the basis of this notice. No part of this notice may be redistributed or reproduced without written
permission from NCDEX.
General Introduction – Hipro Soybean Meal PRICE VOLATILITY HIPRO SOYBEAN MEAL
• In terms of consumption, currently the soybean meal takes up over 60 percent of the world’s
total consumption of protein meal. (Source: Dalian Commodity Exchange) 40.0%

• World production of Soybean Meal stood at 2384.88 lakh tons in 2019-20.

35.0%

30.0%

• China, United States and Brazil are the top 3 producing countries in the world with 29%, 19% 25.0%

and 14% share respectively. (as per 2019-20 production data) 20.0%

• India is the 6th largest producer of Soybean Meal, contributing around 3% of the world total
15.0%

production. 10.0%

5.0%
• Major exporting countries of Soybean Meal: Argentina, Brazil and United States. (as per
2019-20 USA data for exports) 0.0%
April May June July August September October November December January February March

• Major importing countries of Soybean Meal: European Union, Indonesia and Vietnam. (as
per 2019-20 USA data for exports) 2016-17 2017-18 2018-19 2019-20

• India is a net exporter of Soybean Meal.

Source - NCDEX Spot Prices

PRICE RISK HEDGING

End Consumer locks in the End Consumer locks in the
Soybean Meal Futures price at Soybean Meal Futures price at
A gain of A gain of
Rs. 32,000/MTfor a long A gain of Rs. 400 A gain of Rs. 400
Rs. 400 in Rs. 400 in
Rs. 32,000/MT for a short
in Spot market. in Futures market.
position Futures market Spot market position
Long Hedge Short Hedge
600 600 Realized Price
400 Realized Price 400 If the price of Soybean Meal
Profit/ Loss in Rs per MT

Profit/ Loss in Rs per MT

If the price of Soybean Meal
decreases in the physical
decreases in the physical 200 200
market, the loss in the
market, the gain in the
0 0 physical market is offset by
physical market is offset by the 31600 31700 31800 31900 32000 32100 32200 32300 32400 31600 31700 31800 31900 32000 32100 32200 32300 32400 the gain in the Futures
loss in the Futures market -200 -200
market
-400 -400

-600 -600 If the price of Soybean Meal

If the price of Soybean Meal
A loss of A loss of
increases in the physical
increases in the physical A loss of Rs. 400 Long Futures Short Physical A loss of Rs. 400 Short Futures Long Physical
Rs. 400 in Rs. 400 in market, the gain in the
market, the loss in the physical in Futures market. in Spot market.
Spot market Futures market
physical market is offset by
market is offset by the gain in
the loss in the Futures
the Futures market
Graphs : For illustrative purposes only market

USES OF HIPRO SOYBEAN MEAL FACTORS AFFECTING PRICES – HIPRO SOYBEAN MEAL
Soybean Meal is a good source of protein for With advancement of science and Crop situation in the countries where India is exporting Soybean Meal
livestock and poultry technology, Soybean Meal can also be put to
a wide number of other uses. Insufficient rainfall at the growth period and heavy rainfall at the maturity period
It is also used in health foods for humans,
cosmetics as well as in making antibiotics Prices of the other competitive feed grains and cereals.