Commodity exchanges re-launch four banned commodities

Commodity exchanges re-launch four banned commodities

New Delhi: Futures trading in soya oil, chana, potato and rubber resumed on 4 December on the MCX, NCDEX, NMCE and NBOT platforms, after a near six-month ban on the four items ended on 30 November.

At 1100 hours, while soya oil and chana opened weak, potato and rubber were firm.

Soya oil, which has been re-launched on NCDEX, MCX and NBOT, opened weak, taking cues from the international market.

Soya oil for January 2009 delivery fell 2.71% at Rs447.55 per 10 kg on NCDEX, while it dipped by 4% at Rs451.20 on the MCX. Soya oil on the regional bourses also began on a modest note.

Chana on NCDEX and MCX were trading negative. The most-active January contract fell 0.8% at 2,231 per quintal on NCDEX and 1.54% at 2,240 on MCX.

Interestingly, potato futures, re-launched on the MCX, started on a bullish note. Both the Agra and Tarkeshwar (West Bengal) varieties for March 2009 delivery were up by 4% at 47 per quintal and 270 per quintal, respectively.

Rubber both on MCX and NMCE were trading firm. The January contract rose 3% at Rs6,180 a tonne, while there was no trading in February and March contracts. Rubber on NMCE was trading at Rs6,378 per tonne.

Market analysts said that traders’ participation was seen firm in these re-launched contracts.

Traders are happy trading in these commodities have resumed, but they will take some time for active participation, Karvy Comtrade analyst Veeresh Hiremath said.

The government had suspended futures trading in the four items for four months on 6 May under pressure from the Left, which blamed futures markets for price rise. The ban was later extended till 30 November.