26 Dec 2022, Singapore – Straits Financial Services Pte Ltd (“Straits Financial”) is among the first batch to successfully conclude the trades in soybean No. 1 futures (a2305), soybean meal futures (m2305) and soybean oil futures (y2305) on Dalian Commodity Exchange (“DCE”). The trades were carried out on behalf of China Commercial Foreign Trade (Singapore) Pte. Ltd. (“CCFT Singapore”) through Xinhu Futures Co., Ltd (“Xinhu Futures”).
China opens its No. 1 soybean, No. 2 soybean, soybean meal, and soybean oil futures and options to international participation on DCE from December 26. The soybean varieties will adopt the same set of rules that were in place previously for RBD palm olein and other DCE listed options, keeping the trading, settlement, and risk management methods unchanged. International traders can use RMB, standard warrants, treasury bonds, and foreign exchange funds as margins. The internationalization of soybean varieties will bring more dynamism to the soybean market and spark a deeper integration with the global soybean industry chain.
CCFT (Singapore) specializes in the import and export business of agricultural products from Southeast Asia, the European Union, the Black Sea, America, and Australia, focusing on bulk trades of palm oil, sunflower oil, non-GMO soybean oil, GMO vegetable oil, and refined sugar, with a focus on export trading to China. The internationalisation of soybean oil futures offers better hedging for cross-border service providers in the supply chain, resulting in smoother industrial mobility and increased trade flexibility.
Straits Financial is one of the overseas intermediaries for internationalized futures products. With the support of Xinhu Futures, it has built strong momentum in recent years in servicing clients to gain access to internationalised products upon launch, including crude oil futures, iron ore futures, TSR 20 futures, low sulphur fuel oil futures, copper futures, and palm olein futures. Mr. Roger Quek, Managing Director of Straits Financial Services Pte Ltd, said, “We are pleased to demonstrate the strength of our business and continue solidifying our leading position in offering Chinese internationalised products. Together with Xinhu Futures and our partners, we are confident in delivering timely services in the evolving financial markets and capturing the many untapped opportunities. We look forward to unlocking more possibilities for our clients in the future as China continues to open its market.”
Mr. Hu Weizhe, General Manager of the Department of International Business of Xinhu Futures, said, “DCE is the world’s largest soybean meal and soybean oil futures market. We have learned that many foreign traders have expressed a strong interest in this sector. The internationalization of soybean varieties will strengthen the link between China’s domestic and international markets and the ability to meet the risk management needs of firms in the soybean industry. It will also enhance China’s influence over pricing. We have worked closely with Straits Financial to achieve a win-win scenario and repeated successes for internationalised products. Xinhu Futures will continue to grow and serve the rest of the world from China, providing better one-stop consulting, training, and trading services for foreign investors in accessing the Chinese futures market.”