November 22, 2007

Soy futures system shapes up in China

Oils and oilseeds futures system centering on soybean, soybean oil, rapeseed oil and palm oil has taken shape in China, said Jiang Yang of China Securities Regulatory Commission (CSRC).

China's market demand for oils and oilseed products grew steadily in the recent years, thus the rapid development of oil production, trade and processing.

The development of a sound and highly efficient oils/oilseeds futures market is considered an important measure for China to promote production and development of oilseeds. This will also help stabilize prices of edible vegetable oil.

Soybean oil, palm oil and rapeseed oil are three of the most highly consumed vegetable oil in China.

Statistics showed that consumption of the three kinds of oil in 2006/2007 made up 71 percent of China's total consumption of vegetable oil.