Glossary of vegetable oil trading terms
In short
Plain-English definitions of the terms used in the FOB Dutch mill rapeseed oil market and the wider vegetable oil trade, from FDM and FOB to NOFOTA, FOSFA, swaps and futures.
Broker
An intermediary who brings buyer and seller together for a fee, without owning the oil.
Cash-settled
Settled by a payment based on a published price, with no oil delivered.
Crude degummed rapeseed oil
Rapeseed oil as it leaves the crushing mill, with gums removed but not refined: the product the FDM market trades.
FDM
FOB Dutch mill: rapeseed oil delivered free on board at a crushing mill in the Netherlands. See the FDM contract.
FEDIOL
The EU vegetable oil and protein meal industry association, whose specification for crude degummed rapeseed oil price reporting agencies refer to.
FOB (free on board)
The seller delivers the goods loaded onto the buyer’s transport; from then on, transport and risk are the buyer’s.
FOSFA
The Federation of Oils, Seeds and Fats Associations, based in London, which publishes standard contracts and runs arbitration for the trade.
Forward period
A future delivery month or months, as opposed to prompt delivery.
Futures
Exchange-listed, cleared contracts on a future price. See physical, swaps and futures.
Hedging
Using a trade to protect against an adverse price move on oil you will buy or sell.
Line-up
The schedule of vessels or barges due to load at a mill or port.
Multi-broker screen
A trading screen showing several brokers’ bids, offers and trades in one place. See our trading platform.
NOFOTA
The Netherlands oils, fats and oilseeds trade association, whose trading rules govern FDM trades, with arbitration in Rotterdam.
OTP
Over the phone: traditional broking by phone rather than on screen.
Physical
A trade that delivers real oil.
Position taking
Buying or selling to profit from an expected price move, rather than to cover a physical need.
Price reporting agency
A company that assesses and publishes market prices, such as Argus, Quantum and Platts. See how the FDM price is set.
Prompt
For delivery soon, as opposed to a forward period.
RSO
Rapeseed oil.
Swap (“paper”)
A financial contract settled in cash against a price assessment, used to fix or take a view on a price without delivering oil.
Frequently asked questions
NOFOTA is the Netherlands trade association whose rules govern FDM rapeseed oil trades; FOSFA is the London-based federation whose standard contracts are used elsewhere in the vegetable oil trade.
Over-the-phone broking, as opposed to trading on a screen.
Rapeseed oil as it leaves the mill, with gums removed but not refined.
Page updated 1 November 2026