China to launch sunflower oil futures and options trading on November 12

The Zhengzhou Commodity Exchange (ZCE) has announced that sunflower oil futures trading will begin on November 12, 2026, following approval from the China Securities Regulatory Commission. The new contracts will allow market participants to trade sunflower oil for future delivery, expanding opportunities for price risk management and exchange-based price discovery.

Initially, four futures contracts will be available for trading — SO2705, SO2707, SO2709 and SO2711, corresponding to delivery months in May, July, September and November 2027. Daytime trading sessions will run from 9:00 to 11:30 and from 13:30 to 15:00 Beijing time, while evening trading will take place from 21:00 to 23:00. The initial margin requirement will be 8%, with a standard daily price fluctuation limit of 7%, rising to 14% on the first trading day. Transaction fees for futures will be set at 0.01% of the transaction value, including intraday position closures.

The exchange will also introduce sunflower oil options trading, scheduled to begin on the evening of November 12. Initially, options contracts will be available for the May and July 2027 delivery months. The transaction fee for options will be 1.5 yuan per contract, while closing positions within the same trading session will be exempt from additional fees.

For physical delivery, the exchange has introduced price adjustments based on product specifications. In particular, crude sunflower oil produced through solvent extraction will be subject to a discount of 100 yuan per ton. Meanwhile, first-grade sunflower oil produced through pressing and delivered from certified factory warehouses will qualify for a premium of 300 yuan per ton.

The introduction of these new exchange-traded instruments could strengthen price discovery mechanisms in China’s sunflower oil market and provide importers, processors and traders with additional opportunities to hedge price risks. Over time, ZCE quotations could become an additional benchmark for international vegetable oil trade, including exporters from the Black Sea region. However, their actual influence will depend on the liquidity of the new contracts and market participation.

Tags: China, sunflower oil