Euronext.liffe, the international derivatives business of Euronext, today announced that it will launch Rapeseed Oil futures and options on Monday 22 January 2007.
The contract has been designed to meet growing demand for new price risk management tools from the European edible oils trade and industry. In particular, the need for Rapeseed Oil futures and options has been strengthened by the significant increase in the use of European edible oils for the production of bio-diesel. This new contract will also enable hedge funds and other investors to gain direct exposure to price movements in rapeseed oil for the first time.
The Euronext.liffe Rapeseed Oil contract will be the first non-genetically modified organism (GMO) edible oils futures contract in the world.
Ian Dudden, Director of Commodity Products at Euronext.liffe commented: "We have seen unprecedented growth, in our portfolio of agricultural futures and options contracts throughout 2006. Going forward into 2007 we expect Rapeseed Oil to become an important part of this contract portfolio as demand for price risk management tools continues to increase across the European agricultural trade and industry."
Jean-Manuel François, oilseeds trader at SAIPOL France said: "The volumes of rapeseed oil traded by SAIPOL have been growing rapidly and will continue to grow in the coming years. It is essential for us to have a viable hedging and pricing mechanism. The new Euronext.liffe contract responds to these needs, and we will be a proactive participant in this market."
Jiirgen Kiefer, Managing Director of H. Jürgen Kiefer GmbU commented: "In light of the emergence of the European biofuel sector in recent years the market has shown a constantly increasing interest in a European Rapeseed Oil contract .... The design of the contract provides an excellent hedging tool for almost all market participants. We as brokers are proud to have been part of this project from the beginning ... We look forward to trading the contract."
