The Hindu Business Line : Commodity exchanges turnover up 65%

Mumbai, Jan. 26 After minor hiccups, commodity exchanges seem to have hit the bull phase again. Total turnover of 20 regional and three national commodity exchanges in the fortnight ended January 15 zoomed 65 per cent to Rs 2.10 lakh crore against Rs 1.27 lakh crore logged in the sequential quarter ended December 31, 2007, according to Forward Markets Commission data.

Year-on-year, the turnover has risen 43 per cent from Rs 1.47 lakh crore.

The three national commodity exchanges—MCX, NCDEX and NMCE—have contributed Rs 2.02 lakh crore of the total turnover.

MCX turnover jumped 70 per cent to Rs 1.69 lakh crore (Rs 99,675 crore) in the fortnight under review, while NCDEX turnover was up 50 per cent to Rs 32,682 crore (Rs 21,806 crore). NMCE registered a turnover of Rs 634 crore, up 42 per cent.

Trading volume

The gold trading volume across contracts in MCX during the fortnight recorded a 105 per cent increase to Rs 72,704 crore against Rs 35,517 crore logged in the fortnight ended December 31, 2007. The total volume of trade was 654,998 kg (342,615 kg).

On January 16, MCX registered the highest ever turnover in gold turnover of Rs 10,803 crore, bettering its previous record of Rs 9,094 crore set on April 20, 2006. The gold turnover was almost 81 per cent of the total exchange on Jan 16.

Silver contracts turnover in MCX increased 119 per cent to Rs 3,193 crore (Rs 1,455 crore) in the fortnight under review.

“Gold turned volatile in the international markets after the crude oil prices touched $100 per barrel mark. Traders found Indian commodity exchange a better place to hedge as it takes care of rupee-dollar volatility as well,” said Mr Sushil Sinha, regional head, Karvy Commodities.

In NCDEX, guarseed (Rs 4,987 crore), soya oil (Rs 4,820 crore), soy bean (Rs 4,496 crore) and RM Seed (Rs 3269 crore) recorded highest turnover in the fortnight.

Among the regional bourses, the Indore-based National Board of Trade, which deals in soya oil, registered a turnover of Rs 4, 994.62 crore in the first fortnight of January.

Four regional exchanges—Spices and oilseeds Exchange Ltd, Sangli; Central India Commercial Exchange Ltd, Gwalior; East India Cotton Association, Mumbai; Bullion Association Ltd, Jaipur—did not record any business in the fortnight ended January 15.

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