Commodities

NCDEX daily turnover quadruples as agri commodities zoom to new highs

Our Bureau Mumbai | Updated on May 05, 2021

As most agriculture commodity prices hit new high forcing many value-chain participants to hedge their position

The National Commodity and Derivatives Exchange (NCDEX), an agriculture-focused derivatives exchange, has reported that its average daily turnover more than quadrupled to ₹2,905 crore in April from ₹698 crore registered during the same month a year ago.

Price of most agriculture commodities linked to the international market has hit a new high due to excess liquidity in the system. The exchange had captured over 80 per cent market share in April despite the disruption cased by Covid-19 pandemic during the month.

The average open interest also increased 92 per cent year-on-year to 876,600 tonne. The exchange delivered 44,646 tonnes of commodities in April, an increase of 44 per cent year-on-year. Refined soy oil, RM seed, chana, soybean and cotton seed oilcake were the top-traded derivatives contracts during the month.

The average daily turnover in refined soy oil was ₹685 crore, making it the country’s top-traded agri-derivative contract in April, while it was ₹551 crore in for RM seed. Contracts in chana, soybean and cotton seed oilcake posted an average daily turnover of ₹506 crore, ₹474 crore and ₹246 crore during the month.

Similarly, the average daily turnover in the evening session crossed ₹200 crore in April, indicating an enhanced alignment of internationally referenceable commodities such as refined soy oil, kapas and steel with the global market.

Kapil Dev, Chief Business and Products said the sharp growth in volumes since last few months and April in particular indicates that agri-value chain participants have been using the NCDEX platform more aggressively for hedging during the extremely volatile agri-commodity market.

Published on May 04, 2021

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