The Hindu Business Line : NMCE modifies menthol contracts

Ahmedabad, Dec. 2 The National Multi-Commodity Exchange (NMCE) has modified contract specifications for menthol crystal, with the new series launched on Saturday.

As per the new specifications, the new futures series will expire on the last day of the calendar month and, in case of it being a holiday, on the previous working day (instead of the 15th day of the delivery month). Thus, the new futures series introduced on Saturday will expire on March 31, 2008, NMCE said in a release.

Delivery Centre

In another major change, the delivery centre for menthol crystal will be Central Warehousing Corporation (CWC) warehouse at Chandausi (instead of the existing CWC warehouse in Delhi) for March-2008 series onwards.

The ticker size for trading is also being changed to 10 paisa from the March 2008 contract (instead of the existing 5 paisa) for easier transactions. However, it is traded in lots of one quintal, while the price is quoted in rupees per kg, as before.

The commodity has to be packed in poly bags from now, before being placed inside 25-kg fibre drums lined with thermocol sheet.

The exchange has also effected certain changes in the quality, such as marginally relaxing levo-menthol content on chromatographic to 99.5 per cent (from 99.51 per cent). The changes have been approved by the regulator Forward Markets Commission (FMC).

Confectionery

Menthol crystals have wide use in confectionery and pharmaceutical formulations in domestic and international markets.

The exchange simultaneously launched new series in six non-ferrous base metals and raw jute. The new futures contract in aluminium, copper, lead, nickel, tin and zinc will expire on February 29 and for raw jute on April 30, 2008.

The delivery centre for the metals, as per specified quality, is at the CWC warehouse in Mumbai, and for raw jute at CWC warehouse in Kolkata.

These metals are usually traded in lots (units) of one or two tonnes but prices are quoted in rupees per kg. In case of raw jute, the commodity is traded in lots of 10 tonnes but quoted in rupee per quintal.

Electronic Platform

NMCE at present also provides electronic platform for futures trading in rubber, pepper, turmeric, pulses, oilseeds, edible and non-edible oils.