NMCE clocks lower deliveries in Robusta

The National Multi-Commodity Exchange of India's (NMCE) second physical delivery witnessed 2.38 per cent delivery of Robusta coffee at 125 mt against total trading volume of 5,250 mt.

The reason for the poor offtake was on account of the new format of screen-based commodity futures and also owing to the fact that some states such as Tamil Nadu are not part of the value-added tax regime.

While majority of prices were in line with the global trend, the Coffee Robusta prices fell by around 12 per cent at NMCE too during August-September.

The prices were Rs 5,721 per quintal as on August 16, which came down to Rs 5,069 per quintal as on September 10.

The Robusta coffee prices fell by around 12 per cent at LIFFE from $1,034 per tonne on August 15, to $900 per tonne on September 15, owing to higher crop production estimate in Brazil.

For September 2005 series, NMCE witnessed physical delivery of 499 mt in pepper against its volume of 6,190 mt. In rubber, 1,351 mt of physical delivery was registered which was 0.96 per cent of the traded volume of 1,40,214 mt. For cardamom, the physical delivery was 41 quintals against the volume of 15,392 quintals, which is 0.26 per cent.

Pepper September 2005 series maintained a remarkable distance at the upper end compared with spot prices. Maintaining the distance throughout the series, the futures ended a little higher over the spot price.

Rubber September 2005 series started with initial contango (postponing payment) but gradually it started moving in tandem with the spot prices, and towards the end of the series both lines seemed to have merged with each other.

With the latest round of deliveries, a total of 9,982 mt, 15,459 mt, 1,117 quintals and 581 mt of pepper, rubber, cardamom and coffee Robusta has taken place at the NMCE since the launch of futures trading in these commodities.