NCDEX modifies castor seeds and coriander contracts

The National Commodity & Derivatives Exchange Limited (NCDEX) has made some modifications in castor seed and coriander contracts expiring in January 2015.
As per the directives of commodity market regulator Forward Market Commission (FMC), the staggered delivery in both commodities would commence from December 29; which would ordinarily have begun from January 12, 2015, a statement issued here said.
This has been done to facilitate smooth deliveries of goods in light of the growing OI (open interest) on the exchange platform, the statement said.
Additionally, pre-expiry margin in case of January 2015 contract would be levied from December 26 in a progressive and linear manner everyday, so that buyers and sellers may pay cumulative margins equal to 100 per cent of the value of the contract as margin on the contract expiry date, the statement said.

The OI in castor seed has been consistently rising, it stood at 444,850 MT on December 19, which along with rising deposits in exchange approved warehouses, has prompted the move to begin early deliveries so as to encourage smooth deliveries through the exchange's clearing system.
In the case of coriander, with no lean month contracts in February and March 2015, early delivery is being facilitated.
The OI in coriander stood at 31,320 MT on December 19.
"We have extended our support to the market and we see a reduction in OI concentration in the January 2015 contract and rolling positions to the February 2015 contract in castor seeds, giving hedgers a platform for rollovers", NCDEX Managing Director Samir Shah said in the statement.