Five commodities generate bulk of national commexes' turnover

Barring National Multi Commodity Exchange (NMCE), all national commodity exchanges remained heavily dependent on the top five commodities, which generated more than 75 per cent of their turnover in the first quarter of the current calendar year. The business of NMCE, however, remained somewhat diversified, spreading across all listed commodities on this platform.

Data compiled by the derivatives market regulator, the Forward Markets Commission (FMC), showed the top five commodities — silver, gold, crude oil, copper & nickel — generated 86.8 per cent of business on the country’s largest commodity exchange, the Multi Commodity Exchange (MCX), to the tune of Rs 31,38,706 crore in the first quarter of 2012. While silver contributed the most with 32 per cent of the exchange’s business, gold, crude oil and copper were 26 per cent, 16 per cent and 11 per cent, respectively, of the overall quarterly turnover. MCX continued to lead in the commodity futures business, with 82 per cent of market share during the quarter.

Soy oil, rape/mustard seed, chana, soybean and guar seed remained the leading five performing commodities on India’s second largest commodity futures market, the National Commodity & Derivatives Exchange (NCDEX). They were followed by pepper and jeera, that also contributed significantly to the exchange’s business, worth Rs 5,22,657 crore during the quarter. The share in the overall commodity futures business remained 11.9 per cent. NCDEX remained the second largest commodity exchange, with an overall volume of trade at 116.5 mt.

With a total market share of 3.35 per cent, the Ahmedabad–based NMCE generated total business worth Rs 147,718 crore by trading 19.6 mt of commodities during the quarter. Aluminium, soy oil, nickel, lead and copper constituted a major share of the value of commodities traded, with each between seven to nine per cent of the exchange’s business, aggregating 40 per cent of quarterly business. Consequently, the exchange remained diversified in terms of commodities traded.

Despite emerging a major player in non-agri futures trade, Indian Commodity Exchange (ICEX), under the Reliance ADA Group, remained largely dependent upon five major commodities -- silver, gold, crude oil, copper and iron ore -- which generated 95 per cent of turnover in the quarter.

Kotak-anchored Ace Derivatives & Commodity Exchange has emerged as one of the fastest growing commodity future exchanges, with a market share of 0.9 per cent in a span of less than two years of its national accreditation. Ace generated a total value of commodity trade worth Rs 39,526 crore, with 8.4 mt of commodity business.