On December 9, Dalian Commodity Exchange (DCE) issued the Notice on the Matters Related to the Listing and Trading of the Corn Futures Contracts, confirming that the corn starch futures will be listed and traded as of December 19, 2014 (Friday) and making clear the matters related to the listing and trading of the corn starch futures contracts.
According to the notice, the first corn starch futures contracts to be listed and traded are CS1503, CS1505, CS1507, CS1509 and CS1511; the trading margin of the contracts is temporarily set at 5% of the contract value, the limit up and down is temporarily set at 4% of the settlement price of the last trading day, and the limit up and down on the first listing day of new contracts is 8% of the benchmark listing price; the trading commission of the contracts is RMB 1.5 / contract, and the trading commission for the same contract opened and then closed on one day will be reduced by half; after settlement on each trading day, DCE will announce relevant trading volumes and open interests of the corn starch futures contracts; the cost of storage and wear and tear for the corn starch is set at RMB 0.8 / ton / day. The benchmark listing price of new contracts will be notified separately by DCE on the trading day prior to the listing.
The notice specifies the designated quality inspection institutions and delivery warehouses: the designated quality inspection institutions for the corn starch are China Certification & Inspection Group Inspection Co., Ltd. and China Certification & Inspection Group Inspection Liaoning Co., Ltd.; the designated delivery warehouse is Yingkou Port Group Corporation, and the designated delivery factory warehouses are COFCO Bio-chemical Energy (Yushu) Co., Ltd., COFCO Bio-chemical Energy (Gongzhuling) Co., Ltd., Shandong Shouguang Juneng Golden Corn Co., Ltd., Baolingbao Biology Co., Ltd., Shandong Zhonggu Starch Sugar Co., Ltd. and Shandong Fuyang Biotechnology Co., Ltd. The designated (factory) delivery warehouses shall be put into use as of the day of listing and trading of the corn starch contracts.
The notice also requires all member units to make effective preparations for the listing of the corn starch futures and pay attention to risk prevention so as to ensure the steady operation of the market.
A market participation said that after the listing the corn starch futures with the corn futures product will form the product line of the corn industry chain, further extending the products of the corn industry chain from the feed field to the deep processing field and expanding and deepening the service of the futures market for the corn industry and the real economy. The listing of the corn starch futures will increase the number of DCE’ s agricultural products to 10 and the total number of the futures products to 16 with the number of China’s commodity futures products to reach 44.