- What products will be launched?
- What is the product design?
- What are the underlying instruments?
- How are final settlement prices determined?
- How are daily settlement prices determined?
- Are there price limits?
- What are the hours for trade entry on CME ClearPort?
- Are trades executed at 1:30 p.m. CT for today or tomorrow’s trade?
- Are there position limits?
- What is the difference between a position accountability level and a position limit?
- I am a bona-fide hedger and I need to exceed position limits. Can I apply for a hedge exemption?
- Are block trades available for the futures contracts?
- Is there a minimum block size that needs to be met?
- Where can I find information for margin requirements and margin offsets?
- How do I access the privately negotiated markets for these products?
- What is an EFRP and are EFPRs available for trading in South Asia Vegetable Oil futures?
- What would be an example of how EFRPs can be used in South Asia Vegetable Oil futures?
1. What products will be launched?
CME Group, in partnership with Fastmarkets, will launch a range of South Asia Vegetable Oil products listed on CBOT for managing exposures linked to the India imports prices These include the following products:
Outright contracts
- 7IF- South Asia Soybean Oil (Fastmarkets) futures
- IPF- South Asia Crude Palm Oil (Fastmarkets) futures
Differential contracts
- 7IS - South Asia Soybean Oil (Fastmarkets) vs. Soybean Oil futures
- IPS - South Asia Crude Palm Oil (Fastmarkets) vs. USD Malaysian Crude Palm Oil futures
2. What is the product design?
The South Asia Vegetable Oil futures contracts are financially settled futures. The final settlement prices for the contracts are based on the calendar month average of the corresponding underlying instruments. A calendar month average (CMA) is the arithmetic average of daily prices over the entire calendar month. While the outright contracts represent the India delivered soybean oil and palm oil cargo prices, the differential contracts closely resemble the CFR basis markets but via a calendar month average, which provides a more balanced representation of the market instead of a single, more volatile value.
3. What are the underlying instruments?
Outright contracts
7IF- South Asia Soybean Oil (Fastmarkets) futures
The underlying instrument for the South Asia Soybean Oil (Fastmarkets) futures is the price assessments for ”Soyoil CFR India $/mt” by Fastmarkets. The prices are published in Fastmarkets’ “All vegetable oils prices & news” Daily Market Newsletter, symbol “AG-SYB-0032”.
IPF- South Asia Crude Palm Oil (Fastmarkets) futures
The underlying instrument for the South Asia Crude Palm Oil (Fastmarkets) futures is the price assessments for ”crude palm oil, cfr west coast India, $/tonne” by Fastmarkets. The prices are published in Fastmarkets’ “All vegetable oils prices & news” Daily Market Newsletter, symbol “AG-PLM-0013”.
Differential contracts
7IS- South Asia Soybean Oil (Fastmarkets) vs. Soybean Oil futures
The South Asia Soybean Oil (Fastmarkets) vs. Soybean Oil futures represents the price differential of the South Asia Soybean Oil (Fastmarkets) futures and the calendar month average of daily prices of the nearest CBOT Soybean Oil futures contract month that is not in the delivery month (nearest non-spot).
IPS- South Asia Crude Palm Oil (Fastmarkets) vs. USD Malaysian Crude Palm Oil futures
The South Asia Crude Palm Oil (Fastmarkets) vs. USD Malaysian Crude Palm Oil futures represents the price differential between the South Asia Crude Palm Oil (Fastmarkets) futures and the USD Malaysian Crude Palm Oil Calendar futures.
4. How are final settlement prices determined?
Outright contracts
7IF- South Asia Soybean Oil (Fastmarkets) futures
The final settlement price for the South Asia Soybean Oil (Fastmarkets) futures is the calendar month average (CMA) of the underlying Fastmarkets Soyoil CFR India assessments. The calendar month average is rounded to the nearest $0.25 for the final settlement price calculation
IPF- South Asia Crude Palm Oil (Fastmarkets) futures
Similarly, the final settlement price for the South Asia Crude Palm Oil (Fastmarkets) futures is the calendar month average rounded to nearest $0.25 of the Fastmarkets Crude Palm Oil CFR West Coast India assessments.
7IF- South Asia Soybean Oil (Fastmarkets) futures and IPF South Asia Crude Palm Oil (Fastmarkets) futures
June 2025 final settlement price calculation example
| Product title | South Asia Soybean Oil (Fastmarkets) futures | South Asia Crude Palm Oil (Fastmarkets) futures |
|---|---|---|
| Underlying | Fastmarkets Soyoil CFR India | Fastmarkets Crude Palm Oil CFR West Coast India |
| Date | Price in $/mt | Price in $/mt |
| 6/2/2025 | $1,073.00 | $1,030.00 |
| 6/3/2025 | $1,075.00 | $1,045.00 |
| 6/4/2025 | $1,092.00 | $1,056.00 |
| 6/4/2025 | $1,074.00 | $1,043.50 |
| 6/6/2025 | $1,075.00 | $1,040.00 |
| 6/9/2025 | $1,085.00 | $1,045.00 |
| 6/10/2025 | $1,096.00 | $1,032.50 |
| 6/11/2025 | $1,073.00 | $1,022.50 |
| 6/12/2025 | $1,069.00 | $1,022.50 |
| 6/13/2025 | $1,075.00 | $1,031.00 |
| 6/16/2025 | $1,115.00 | $1,067.50 |
| 6/17/2025 | $1,112.00 | $1,065.00 |
| 6/18/2025 | $1,101.00 | $1,071.00 |
| 6/19/2025 | $1,098.00 | $1,060.00 |
| 6/20/2025 | $1,115.00 | $1,060.00 |
| 6/23/2025 | $1,085.00 | $1,065.00 |
| 6/24/2025 | $1,093.00 | $1,042.50 |
| 6/25/2025 | $1,090.00 | $1,041.00 |
| 6/26/2025 | $1,098.00 | $1,047.50 |
| 6/27/2025 | $1,108.00 | $1,047.50 |
| 6/30/2025 | $1,110.00 | $1,041.00 |
| Final settlement price | $1,091.00 | $1,046.50 |
Differential contracts
7IS- South Asia Soybean Oil (Fastmarkets) vs. Soybean Oil futures
The South Asia Soybean Oil (Fastmarkets) vs. Soybean Oil futures represents the price differential of the South Asia Soybean Oil (Fastmarkets) futures (Leg 1) and the calendar month average of the daily prices of the nearest non-spot CBOT Soybean Oil futures contract (Leg 2). The CBOT Soybean Oil futures calendar month average is rounded to the nearest $0.25 for the final settlement price calculation. In addition, the CBOT Soybean Oil futures daily prices are converted from cents per pound to dollars per metric ton before the average by applying a conversion factor of 2204.623 pounds per metric ton.
For example, during June 2025, the CBOT Soybean Oil July futures is the nearest contract month that is not in its delivery month. The final settlement price for the 7IS June 2025 contract is therefore equal to difference between the final settlement price of the South Asia Soybean Oil (Fastmarkets) futures June 2025 contract and the calendar month average (converted and rounded to nearest $0.25) of the CBOT Soybean Oil July futures for the month of June 2025.
7IS- South Asia Soybean Oil (Fastmarkets) vs. Soybean Oil futures
June 2025 final settlement price calculation example
| 7IS June 2025 contract final settlement price (Leg 1 - Leg 2) | -$21.50 | |||
| Leg 1 - South Asia Soybean Oil (Fastmarkets) futures June 2025 contract | $1,091.00 | |||
| Leg 2 - CBOT Soybean Oil calendar month average for June 2025 | $1,112.50 | |||
| CBOT Soybean Oil futures calendar month average calculation | ||||
|---|---|---|---|---|
| Date | Underlying COBT Soybean Oil futures contract month | CBOT Soybean Oil futures original price in ¢/pound | CBOT Soybean Oil futures converted price in $/mt | |
| 6/2/2025 | July 2025 | ¢46.28 | $1,020.2995 | |
| 6/3/2025 | July 2025 | ¢46.81 | $1,031.9840 | |
| 6/4/2025 | July 2025 | ¢46.81 | $1,031.9840 | |
| 6/4/2025 | July 2025 | ¢46.65 | $1,028.4566 | |
| 6/6/2025 | July 2025 | ¢47.50 | $1,047.1959 | |
| 6/9/2025 | July 2025 | ¢47.38 | $1,044.5504 | |
| 6/10/2025 | July 2025 | ¢47.79 | $1,053.5893 | |
| 6/11/2025 | July 2025 | ¢48.02 | $1,058.6600 | |
| 6/12/2025 | July 2025 | ¢47.61 | $1,049.6210 | |
| 6/13/2025 | July 2025 | ¢50.61 | $1,115.7597 | |
| 6/16/2025 | July 2025 | ¢55.11 | $1,214.9677 | |
| 6/17/2025 | July 2025 | ¢54.79 | $1,207.9129 | |
| 6/18/2025 | July 2025 | ¢54.77 | $1,207.4720 | |
| 6/20/2025 | July 2025 | ¢54.47 | $1,200.8581 | |
| 6/23/2025 | July 2025 | ¢53.24 | $1,173.7413 | |
| 6/24/2025 | July 2025 | ¢52.17 | $1,150.1518 | |
| 6/25/2025 | July 2025 | ¢51.82 | $1,142.4356 | |
| 6/26/2025 | July 2025 | ¢52.52 | $1,157.8680 | |
| 6/27/2025 | July 2025 | ¢52.45 | $1,156.3248 | |
| 6/30/2025 | July 2025 | ¢52.51 | $1,157.6475 | |
| CBOT Soybean Oil calendar month average (rounded to nearest $0.25) | $1,112.50 | |||
IPS- South Asia Crude Palm Oil (Fastmarkets) vs. USD Malaysian Crude Palm Oil futures
The South Asia Soybean Oil (Fastmarkets) vs. Soybean Oil futures represents the price differential of the South Asia Crude Palm Oil (Fastmarkets) futures (Leg 1) and the USD Malaysian Crude Palm Oil Calendar futures (Leg 2).
For example, the final settlement price for the IPS June 2025 contract is equal to the difference between the final settlement price of the South Asia Crude Palm Oil (Fastmarkets) futures June 2025 contract and the final settlement price of the USD Malaysian Crude Palm Oil Calendar futures June 2025 contract.
IPS- South Asia Crude Palm Oil (Fastmarkets) vs. USD Malaysian Crude Palm Oil futures
June 2025 final settlement price calculation example
| 7IS June 2025 contract final settlement price (Leg 1 - Leg 2) | $108.00 | |||
| Leg 1 - South Asia Crude Palm Oil (Fastmarkets) futures June 2025 contract | $1,046.50 | |||
| Leg 2 - USD Malaysian Crude Palm Oil Calendar futures June 2025 contract | $938.50 | |||
5. How are daily settlement prices determined?
Daily settlement for all contracts will be determined by Exchange staff based on relevant market data including, but not limited to, pricing data from market participants such as broker quotes, cleared prices, the settlement prices of related products and any other pricing data from sources deemed reliable by staff.
6. Are there price limits?
There are no price limits.
7. What are the hours for trade entry on CME ClearPort?
Trades may be entered on CME ClearPort Sunday 5:00 p.m. – Friday 5:45 p.m. CT, with no reporting Monday – Thursday from 5:45 p.m. – 6:00 p.m. CT.
8. Are trades executed at 1:30 p.m. CT for today or tomorrow’s trade?
All trades executed through 5:45 p.m. CT will be considered today’s trade.
9. Are there position limits?
Outright contracts
7IF- South Asia Soybean Oil (Fastmarkets) futures
Has a maximum position limit of 5,000 contracts in the spot month and a position accountability level of 6,500 contracts in any single month or in all months combined.
IPF- South Asia Crude Palm Oil (Fastmarkets) futures
Has a maximum position limit of 10,000 contracts in the spot month and a position accountability level of 13,000 contracts in any single month or in all months combined.
Differential contracts
7IS- South Asia Soybean Oil (Fastmarkets) vs. Soybean Oil futures
Has a maximum position limit of 5,000 contracts in the spot month and a position accountability level of 6,500 contracts in any single month or in all months combined. In addition, positions in the South Asia Soybean Oil (Fastmarkets) vs. Soybean Oil futures will aggregate into the South Asia Soybean Oil (Fastmarkets) futures.
IPS- South Asia Crude Palm Oil (Fastmarkets) vs. USD Malaysian Crude Palm Oil futures
Has a maximum position limit of 10,000 contracts in the spot month and a position accountability level of 13,000 contracts in any single month or in all months combined. In addition, positions in the South Asia Crude Palm Oil (Fastmarkets) vs. USD Malaysian Crude Palm Oil futures will aggregate into the South Asia Crude Palm Oil (Fastmarkets) futures.
10. What is the difference between a position accountability level and a position limit?
Position limits are levels which a market participant may not exceed unless they have an approved exemption.
Position accountability levels are levels which a market participant may exceed and not be in violation of an Exchange rule. A market participant who exceeds an accountability (or reportable) level may be asked by the Market Regulation Department (the “Department”) to provide information relating to the position, including, but not limited to, the nature and size of the position, the trading strategy employed with respect to the position and hedging information, if applicable.
A more detailed explanation is found in Rules 559, 560 of the CBOT Rulebook.
11. I am a bona-fide hedger and I need to exceed position limits. Can I apply for a hedge exemption?
Yes, you can apply for a hedge exemption. Market participants may be eligible to receive an exemption from position limits in accordance with Rule 559 based on having bona fide hedging positions (as defined by CFTC Regulation §150.1) risk management positions and/or arbitrage and spread positions.
To obtain an exemption application or for further information on the exemption application process, please contact us at Hedgeprogram@cmegroup.com
12. Are block trades available for the futures contracts?
Yes, the futures contracts can be privately negotiated as blocks and registered for clearing through CME ClearPort.
13. Is there a minimum block size that needs to be met?
Yes, for all South Asia Vegetable Oil contracts, there is a minimum block size of 10 contracts and trades need to be reported within 15 minutes.
14. Where can I find information for margin requirements and margin offsets?
Current margin requirements and margin offsets available for the South Asia Vegetable Oil contracts can be found on product margins.
15. How do I access the privately negotiated markets for these products?
The easiest and most convenient way you can access these privately negotiated markets would be through inter-dealer brokers (IDBs). View a list of IDBs.
16. What is an EFRP and are EFPRs available for trading in South Asia Vegetable Oil futures?
The term EFRP is an acronym for exchange for related position. An EFRP is a transaction that involves a privately negotiated, off-exchange execution of an exchange futures or options contract and, on the opposite side of the market, the simultaneous execution of an equivalent quantity of the cash product, by-product, related product or OTC derivative instrument corresponding to the asset underlying the exchange contract.
Types of EFPRs include: Exchange of futures for physical (EFP), Exchange of futures for risk (EFR) and Exchange of option for option (EOO).
EFRPs may be executed for any futures or options contracts on any CME Group exchange, provided that all exchange and CFTC regulatory requirements are met. More information is available on the CME Group website .
17. What would be an example of how EFRPs can be used in South Asia Vegetable Oil futures?
One example would be in the use of EFPs to price physical shipments. Buyers and sellers can enter into an agreement to purchase physical vegetable oil shipments using basis pricing. Basis pricing refers to a premium or discount to the South Asia Vegetable Oil futures contracts. The buyer would then purchase a similar tonnage in futures contracts, whose prices, when added with the premium/discount, will determine the final price of the physical contract. The buyer would then EFP these futures contracts to the seller in the final stage. The benefit of transacting using basis pricing is that it gives the buyer and seller the ability to determine the final price at other dates and times independently of one another. By the use of futures contracts and EFPs, both buyers and sellers will have more flexibility in terms of pricing.
South Asia Vegetable Oil (Fastmarkets) futures
Learn about South Asia Vegetable Oil futures, including contract specs, listing cycle and more.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
