The underlying commodity for the new cash settled soybean futures contract is export type soybeans, in bulk, transferred to and sold at the Paranagua port, Parana state.
The contract will use the SFI ticker symbol and its trading is authorized as of May 2011. Each futures contract will be quoted in US dollars and represents 450 60-net kilogram bags of soybeans, or 27 metric tons.
The maximum daily price fluctuation will be +/- 5% from the previous day’s settlement price.
According to the stock exchange, the new call and put options on cash settled soybean futures, meanwhile, can be traded as of 29 January 2011. These are American options, which the holder may exercise at any time.
The unit, symbol, trading times, and expiration dates for the options contracts will be the same as for the futures contract.
Settlement to be based on a price index created by the Exchange and CEPEA.
The new soybean futures and options on futures will have the Paranagua port, Parana state, as their reference point and will be settled in accordance with the ESALQ/BM&FBOVESPA Soybean Price Index.
The new soybean contracts join futures and options in ethanol, corn, and live cattle and complete the BM&FBOVESPA portfolio of cash settled commodity derivatives.
In the case of the soybean contract with physical delivery, trading will remain authorized in the exchange’s electronic trading environments.
