(Yicai Global) Jan. 29 -- China launched options for natural rubber, cotton and corn yesterday, adding to the tools available to hedge price risks in the world's biggest commodity market.

Approved by the China Securities Regulatory Commission earlier this month, the new commodities available on the Shanghai, Zhengzhou and Dalian exchanges double the amount of options on the market.

The options for natural rubber include eight trading contracts, while those for cotton include four contracts while corn options have five contracts.

Options give holders the right to buy or sell a commodity at a particular agreed price and allow for greater flexibility for commercial hedgers such as processors and traders.

China launched soy meal and sugar options in 2017, its first such commodity derivatives. It started copper option trading in September 2018.

Spot commodity prices for natural rubber, cotton, and corn frequently fluctuate, CSRC spokesperson Gao Li said, adding that the trading of related options will help companies to manage risks in a sophisticated manner.

It will also help reduce insurance costs for farmers and better serve the vitalization of rural areas, Gao said.

Launching these options will expand the scope of option products and enrich derivative tools that can serve the real economy, said Luo Xufeng, general manager at Nanhua Futures.