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Our Bureau

Starting June 2007, there will be two contracts

Mumbai , Jan. 5

National Commodity and Derivatives Exchange Ltd (NCDEX) on Friday included Akola, Nagpur, Itarsi, Sagar (Madhya Pradesh) and Kota (Rajasthan) as delivery centres for soyabean contracts expiring June 2007 and thereafter. For running soyabean contracts, the delivery centres will be limited to Nagpur and Kota.

The commodity futures exchange has also made other changes in specifications of contracts expiring on June 2007. The tick size has been raised from 5 paise to 50 paise and will deliver better value to investors.

"Tick size is the minimum difference in rates between two orders on the same side (either buy or sell) entered on the system for a particular commodity. It plays an important role in deciding on open interest limits," said Mr Satish Gupta, a commodity trader.

Addressing its concern over quality issues, the NCDEX has redefined "sand/silica" impurity to include all "foreign matter". However, the level of impurity has been retained at two per cent.

Starting June 2007, there will be two soyabean contracts running between October and January (soyabean-A) and another from February-September (soyabean-B). While the permitted moisture level for soyabean-A will be 10 per cent, it will be 8 per cent for soyabean-B. Daily price fluctuation limit will remain at 6.5 per cent. If the prices hit the ceiling, the limit will be raised further by 3.5 per cent after a cooling off period of 15 minutes. If the revised limit of 10 per cent is breached, trades below the cap will be allowed.

Members will have an open interest limit of 45,000 tonnes or 15 per cent of the market open interest while client limit will be 15,000 tonnes.

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NCDEX includes new delivery centres for soyabean contracts

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