Ace Commodity Exchange signs MoU with livestock association

MUMBAI: Ace Derivatives and Commodity Exchange Ltd today said it has signed a memorandum of understanding with Compound Feed Manufacturers Association on sharing of information.

By virtue of the MoU, feed manufacturers, who are members of Compound Feed Manufacturers Association ( CLFMA), an association of the country's livestock sector, will receive price information for soymeal, which is an important input and output component for the association and accounts for 30-40 per cent of the total cost of its feed, an exchange release said here.

The Kotak Mahindra Group-anchored Ace Derivatives and Commodity Exchange Ltd (Ace) and Compound Feed Manufacturers Association (CLFMA) will together endeavour to work in the interest of members of the association to participate as hedgers in futures contract and thus protect their business margin, it said.

Ace will get the opportunity to interact directly with players who trade in feed, poultry, fish and prawns, as well as other livestock across the country, as many of them are members of CLFMA.

"This partnership will help the members of CLFMA to protect themselves against price volatility by hedging on Ace, thereby also giving boost to futures trading," Ace Derivatives Chief Executive Dilip Bhatia said.

Ace currently offers trading in nine agri-commodities -- refined soy oil, soybean, soybean meal, RBD palmolein, cotton, mustard seed, castor, chana and sugar.