Physical, swaps and futures: how they fit together
In short
There are three ways to trade the FDM rapeseed oil price. Physical trades move real oil from a Dutch mill. Swaps are financial contracts settled against a published price assessment, with no oil changing hands. Since April 2025, the CME has also listed cash-settled European FOB Dutch Mill Rapeseed Oil (Argus) futures.
Physical trade
A physical trade is a contract to deliver crude degummed rapeseed oil free on board at a Dutch mill, under NOFOTA rules. Buyers who need the oil (for biodiesel, food or feed) and the mills that produce it trade physically. See the FDM contract.
Swaps (“paper”)
A swap fixes a price for a future period and is settled in cash against a published assessment, so no oil is delivered. Swaps let a buyer or seller lock in a price, or take a view on it, separately from moving the oil. Rapeseed oil swaps settled against the Argus FOB Dutch mill quote have traded since 2010.
CME futures
The CME European FOB Dutch Mill Rapeseed Oil (Argus) futures started trading on 28 April 2025. Each contract is 20 metric tonnes and is settled in cash against a monthly average of the Argus daily prompt price, and trades are cleared through the exchange. In March 2026 the underlying assessment changed to a prompt price assessed 5 to 40 days forward.
How they fit together
Many participants use more than one: a buyer may agree the physical oil and hedge the price on paper, or a mill may sell forward and use paper to manage the timing. Which mix suits you depends on your requirement. See our brokerage services and how the FDM price is set.
Frequently asked questions
A physical trade delivers oil; a swap is settled in cash against a price assessment and no oil changes hands.
The European FOB Dutch Mill Rapeseed Oil (Argus) futures started trading on 28 April 2025.
20 metric tonnes, settled in cash against a monthly average of the Argus daily prompt price.
Page updated 1 November 2026