December 26, 2012

The Zhengzhou Commodity Exchange was given approval by China's securities regulator to trade futures contracts in rapeseed and rapeseed meal, a move aimed at helping companies manage price risks.

The new contracts will help companies' hedge against price fluctuations at a time of rising market risks and growing imports, the China Securities Regulatory Commission (CSRC) said on its website.

The CSRC did not say when trading of the new contracts will start. The Zhengzhou Commodity Exchange has had a rapeseed oil contract since 2007.

Before 2011, China was the world's largest grower of rapeseed, used for making vegetable oil and biodiesel fuel. But as farmers have switched to more profitable crops, its imports have risen from countries such as Canada.

China's rapeseed output this year fell 9.1% to 12.2 million tonnes from a year earlier, the China National Grain and Oils Information Centre said last month.