The Hindu Business Line : 23% drop in commodity exchanges’ turnover

Mumbai, July 24 The total turnover of the three national commodity exchanges for the fortnight ended July 14, 2007 has taken a knock compared to same period last month.

Market regulator, Forward Markets Commission, data shows that MCX turnover during the fortnight ended July 14 dropped 26 per cent to Rs 81,936 crore against Rs 1,11,101 crore in the fortnight ended June 15.

Similarly, NCDEX turnover dipped 11 per cent to Rs 29,709 crore, against Rs 33,501 crore in the comparative fortnight last month.

NMCE (National Multi-Commodity Exchange) turnover was also down 9 per cent to Rs 598 crore in the fortnight against Rs 658 crore for same fortnight last month.

However, few regional commodity exchanges reported negligible rise in their turnovers, during the fortnight under review.

The total turnover of all the 23 exchanges, including the three national commodity exchanges, was down 22 per cent at Rs 1.17 lakh crore in the fortnight, against Rs 1.50 lakh crore in the comparative fortnight last month.

“Apart from waning interest in commodity futures trading due to frequent changes in regulation, the fall in turnover can also be attributed to curbs in open interest position in many of the commodities,” said a trader. The rise and fall in commodity prices also impacts turnover of the exchanges.

Of the 27 commodities traded on MCX, only 10 contributed to the total turnover. And, among them gold, silver and copper registered the highest traded volume.

At the NCDEX, only 10 of 33 commodities traded were actively dealt during the fortnight under review. Among them guarseed, gold and pepper logged the highest traded volume. Rubber, pepper and raw jute recorded the highest volume of trade in NMCE.

Reflecting the volatility in agriculture commodity futures prices, pepper for July delivery during the fortnight under review touched a high of Rs 15,375 per quintal on July 2 and plunged to a low of Rs 13,830 per quintal on July 10. The total trade value on the NCDEX was Rs 3,591 crore.

Near month guarseed futures in the fortnight hit a high of Rs 1,707 per quintal on July 13 and dropped to a low of Rs 1,608 on July 10. Total traded value in NCDEX was Rs 5,169 crore.