#United States #Chicago #CME Group #South Asia #Edible Oil Futures

CME Group to Introduce New Edible Oil Futures in South Asia

On March 2, 2026, CME Group is set to launch four innovative futures contracts tailored specifically for the South Asian edible oil market. As the largest importer of edible oils globally, South Asia stands to benefit significantly from these newly introduced cash-settled contracts, aimed at improving price discovery and risk management in this vital sector.

The upcoming contracts include:

• - South Asia Soybean Oil (Fastmarkets) Futures
• - South Asia Crude Palm Oil (Fastmarkets) Futures
• - South Asia Soybean Oil (Fastmarkets) vs. CBOT Soybean Oil Futures
• - South Asia Crude Palm Oil (Fastmarkets) vs. USD Malaysian Crude Palm Oil Futures

John Ricci, CME Group’s Managing Director and Global Head of Agricultural Products, emphasized the strategic importance of these contracts in the context of South Asia’s import dynamics. By utilizing Fastmarkets indices, market participants will have enhanced tools at their disposal to mitigate risks associated with fluctuations in soybean and palm oil prices. This initiative marks a significant step in equipping local traders with the necessary infrastructure to hedge against market volatility.

Przemek Koralewski, Global Head of Market Development at Fastmarkets, highlighted that South Asia accounts for an impressive 45% of global soyoil and 30% of palm oil trade, making it a critical hub for oil distribution and marketing. He remarked that the integration of Fastmarkets pricing indices with CME Group’s futures contracts will offer much-needed transparency, allowing traders to manage risks more efficiently.

The introduction of these contracts is partnered with ICAP, known for its long-standing expertise in fostering market developments. James McKay, Co-Head of APAC Ags, Softs & Biofuels at ICAP, noted the firm’s enthusiasm for enhancing liquidity in Asia-centric markets and supports the growth of trading in these emerging sectors.

In 2025, CME Group reported outstanding performance in its agricultural products sector, achieving a record average daily volume (ADV) of 1.9 million contracts, with exceptional demand for soybean futures and soybean oil futures generating 293,000 and 182,000 contracts respectively.

As these futures contracts are finalized and listed, they will be governed by the rules of the Chicago Board of Trade (CBOT), further solidifying CME Group's position as a leader in the global derivatives marketplace. By offering a diverse suite of products across various asset classes including interest rates, equity indexes, foreign exchange, and commodities, CME Group continues to be a pivotal player in assisting market participants globally to optimize their trading strategies.

For further details on the new South Asia edible oils futures contracts, interested parties are encouraged to visit CME Group's official website.

CME Group prides itself on enabling traders in futures, options, and over-the-counter markets, continuously seeking innovative solutions to help clients navigate complex market landscapes. As the marketplace evolves, initiatives such as these edible oil futures signify a substantial shift towards responsive and informed trading practices in key global markets.