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Ahmedabad, Dec. 14 National Multi-Commodity Exchange (NMCE) has reactivated futures trading in castor seed with the induction of 27 new members, as many more have shown their readiness to join the country’s first national commodity exchange.

It has been revived after a series of meetings with local traders and other participants as per their recommendations and suggestions, while certain changes are also being incorporated in due course, an Exchange release said on Thursday. Castorseed trading is active in local commodity exchanges, but the market has been looking at a wider, transparent and dependable platform, which NMCE has been providing for the last five years.

At present, 27 new members from the castor seed fraternity have joined NMCE for availing this opportunity, as many more prospective members evinced interest to join soon.

Members and their clients can take position for futures trading in the commodity in the existing three series for February 2008, March 2008 and April 2008 contracts, as well as in the new series being launched on Monday (December 17, 2007) for the May 2008 contract, running concurrently.

Castor seed is traded online at the exchange in lots (units) of 10 tonnes, while its price is quoted in rupees per quintal (100 kg), as per the quality and price band specified by the Exchange.

The open position limit for members in 15,000 tonnes and that for clients is 5,000 tonnes.

India is the world’s largest producer of castor seed, contributing to about 60 per cent of the global production. Gujarat accounts for over two-third of the country’s production, followed by Andhra Pradesh and Rajasthan,

Meanwhile, NMCE has launched new series in 14 other commodities and six ‘spread series’ in pepper and rubber, to be available for futures trading on NMCE terminals with effect from Monday, December 17, 2007.

Out of these 15 new contracts, including that of castor seed 10 tonnes, the trading cycle of cardamom, coconut oil, copra, cumin seed, gold, silver, guar gum and isabgul seed will expire on March 15, 2008, rubber and sacking on April 15, castor seed 10 tonnes on May 15, kilo gold on June 5 and that in pepper on June 14, 2008.

The six new ‘spread series’ include three each in rubber and pepper, which will be available for futures trading, spread over November 16 to December 15, January 15 and February 15, 2008, respectively.

NMCE provides electronic platform for trading also in other commodities — such as base metals, turmeric, raw jute, menthol crystal, chana, soyaoil and guar seed — having different schedules of introduction and expiry days.

More Stories on : Commodity Exchanges | Derivatives Markets

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NMCE reactivates castorseed futures

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