New in commodity market: sugar and sunflower oil indices
The methods for calculating the two new commodity indices — the regional sugar index in the Central Federal District and the sunflower oil export index — have been approved by the interagency working group. The indices are to be calculated by Joint-Stock Company National Mercantile Exchange based on the information about transactions that shall be submitted to it by market participants.
An index is a benchmark for market participants that they can rely on when addressing their business tasks and launching price risk hedging instruments. Besides, an index can be used in the regulation of commodity markets.
Today, the sunflower oil index is already used to calculate the rates of the export customs duties, and the sugar index has been proposed by the exchange as an underlying asset for launching a cash-settled futures contract. The approved indices will become part of the national system of price indices. In the future, the Bank of Russia and competent agencies will explore the possibility of using them in the regulation.