Business Standard

MCX steps up efforts on agri commodities

Guar contracts attract significant traders' interest

Related News

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, agri commodities 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 MCX 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, MCX also gained momentum in guar segment.

“MCX 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, MCX 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 MCX 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.

Read more on:   
|
|
|

Read More

FMC approves pepper re-launch with mandatory mineral oil wash

The Forward Markets Commission (FMC), the commodity derivatives market regulator, has for the first time approved the re-launch of pepper contract ...

Quick Links

 

Market News

HKEx aims to expand mini contracts to more metals and coal

Hong Kong Exchanges and Clearing Ltd (HKEx) plans to expand the range of its three "mini" contracts to include more base metals as well as coal, ...

Adverse market conditions forcing closure of oilseed crushers

Refiners prefer to import crude palm oil from Malaysia and Indonesia, finding this cheaper than local crushing

Muhurat trading: Sensex gains 64 points; Nifty ends at 8015

Markets gained for the fifth straight session to end the customary 'Muhurat' trading session held to usher in Samvat 2071 on a firm note

Financial Technologies gains 10% on heavy volumes

The stock zoomed 46% from its 52-week low of Rs 136 touched during intra-day on Wednesday.

PMC Fincorp soars over 25% in two days post stock split

The stock rallied 27% to Rs 213 from Rs 168 (adjusted to stock split) on October 22 on the Bombay Stock Exchange.

Back to Top