Business Standard

MCX steps up efforts on agri commodities

Guar contracts attract significant traders' interest

Dilip Kumar Jha  |  Mumbai 

Known for being non-agri, the Multi Commodity Exchange (MCX) has gradually stepped up efforts to attract participation in also.

Though contributing insignificantly to the exchange’s overall turnover, like mentha oil, sugar, potato and cardamom are preferred by traders on the MCX. With around 90 per cent of the market share in overall commodity futures trade, the continued its leadership in almost all non-agri commodities, including base metals, precious metals and energy.



The re-launch of guar contracts, however, has also gained momentum on the after the exchange intensified its efforts to attract participation in this animal feed, along with its derivative – guar gum.

While the National Commodity & Derivatives Exchange (NCDEX) attracted immense traders’ interest, also gained momentum in guar segment.

has stepped up efforts on agri commodities, which resulted in participation in guar contracts,” said Naveen Mathur, associated director, Angel Broking.

On the first day of guar relaunch on May 14, clocked Rs 3.58 crore turnover in guargum against Rs 28.60 crore by NCDEX. Similarly, MCX’s guar seed contracts generated a total business of Rs 20.54 crore on May 14 against Rs 53.76 crore by NCDEX.

Gradually, however, the business from the two recently launched contracts remained volatile across both exchanges. On May 27, the turnover in both guar gum and seed at ended at Rs 7.82 crore and Rs 29.39 crore in comparison with Rs 23.28 crore and Rs 42.42 crore, respectively, on the NCDEX.

The Forward Markets Commission (FMC), the commodity derivatives market regulator, allowed futures trading in guar contracts after over a year following the price of seed and guar gum shooting up abnormally high in domestic markets without fundamental support .

The ministry of consumer affairs investigated into the issue over complaints by a number of traders and discovered some traders had manipulated the price to achieve quick gains. The matter is being further investigated.

According to an analyst, traders are a bit cautious now.

RECOMMENDED FOR YOU

MCX steps up efforts on agri commodities

Guar contracts attract significant traders' interest

Guar contracts attract significant traders' interest Known for being non-agri, the Multi Commodity Exchange (MCX) has gradually stepped up efforts to attract participation in also.

Though contributing insignificantly to the exchange’s overall turnover, like mentha oil, sugar, potato and cardamom are preferred by traders on the MCX. With around 90 per cent of the market share in overall commodity futures trade, the continued its leadership in almost all non-agri commodities, including base metals, precious metals and energy.

The re-launch of guar contracts, however, has also gained momentum on the after the exchange intensified its efforts to attract participation in this animal feed, along with its derivative – guar gum.

While the National Commodity & Derivatives Exchange (NCDEX) attracted immense traders’ interest, also gained momentum in guar segment.

has stepped up efforts on agri commodities, which resulted in participation in guar contracts,” said Naveen Mathur, associated director, Angel Broking.

On the first day of guar relaunch on May 14, clocked Rs 3.58 crore turnover in guargum against Rs 28.60 crore by NCDEX. Similarly, MCX’s guar seed contracts generated a total business of Rs 20.54 crore on May 14 against Rs 53.76 crore by NCDEX.

Gradually, however, the business from the two recently launched contracts remained volatile across both exchanges. On May 27, the turnover in both guar gum and seed at ended at Rs 7.82 crore and Rs 29.39 crore in comparison with Rs 23.28 crore and Rs 42.42 crore, respectively, on the NCDEX.

The Forward Markets Commission (FMC), the commodity derivatives market regulator, allowed futures trading in guar contracts after over a year following the price of seed and guar gum shooting up abnormally high in domestic markets without fundamental support .

The ministry of consumer affairs investigated into the issue over complaints by a number of traders and discovered some traders had manipulated the price to achieve quick gains. The matter is being further investigated.

According to an analyst, traders are a bit cautious now.
image
Business Standard
177 22

MCX steps up efforts on agri commodities

Guar contracts attract significant traders' interest

Known for being non-agri, the Multi Commodity Exchange (MCX) has gradually stepped up efforts to attract participation in also.

Though contributing insignificantly to the exchange’s overall turnover, like mentha oil, sugar, potato and cardamom are preferred by traders on the MCX. With around 90 per cent of the market share in overall commodity futures trade, the continued its leadership in almost all non-agri commodities, including base metals, precious metals and energy.

The re-launch of guar contracts, however, has also gained momentum on the after the exchange intensified its efforts to attract participation in this animal feed, along with its derivative – guar gum.

While the National Commodity & Derivatives Exchange (NCDEX) attracted immense traders’ interest, also gained momentum in guar segment.

has stepped up efforts on agri commodities, which resulted in participation in guar contracts,” said Naveen Mathur, associated director, Angel Broking.

On the first day of guar relaunch on May 14, clocked Rs 3.58 crore turnover in guargum against Rs 28.60 crore by NCDEX. Similarly, MCX’s guar seed contracts generated a total business of Rs 20.54 crore on May 14 against Rs 53.76 crore by NCDEX.

Gradually, however, the business from the two recently launched contracts remained volatile across both exchanges. On May 27, the turnover in both guar gum and seed at ended at Rs 7.82 crore and Rs 29.39 crore in comparison with Rs 23.28 crore and Rs 42.42 crore, respectively, on the NCDEX.

The Forward Markets Commission (FMC), the commodity derivatives market regulator, allowed futures trading in guar contracts after over a year following the price of seed and guar gum shooting up abnormally high in domestic markets without fundamental support .

The ministry of consumer affairs investigated into the issue over complaints by a number of traders and discovered some traders had manipulated the price to achieve quick gains. The matter is being further investigated.

According to an analyst, traders are a bit cautious now.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard