Business Daily from THE HINDU group of publications
Tuesday, Jul 25, 2006
Agri-Biz & Commodities
Physical deliveries surge on NMCE for July contracts
Kochi , July 24
A majority of the commodities recorded a rise in physical deliveries for the July contract on the National Multi-Commodity Exchange, with chana and rubber witnessing an impressive surge.
In chana, physical delivery rose to 430 tonnes, up from the 170 tonnes recorded for the previous contract.
Physical delivery in rubber rose to 1,291 tonnes.
Cardamom recorded a physical delivery of 63 quintals, pepper 321 tonnes, gaurseed 70 tonnes, coffee Robusta 1.5 tonnes and copra 2 tonnes.
In line with global trends, rubber prices increased in the initial stage of the series but started taking a gradual dip from May 27 onwards, as buyers strategically refrained from the market.
Higher domestic production was also a price dampener. Ultimately, the series expired at Rs 10,092.
Pepper prices, on the other hand, declined in the beginning due to poor domestic and international demand.
After touching a low of Rs 6,694 on June 14, prices rose and touched Rs 7,798 towards the expiry of the contract.
Sustained international demand fuelled the price rise, NMCE said in a press release.
Punjab National Bank offers 90 per cent finance against Central Warehousing Corporation receipts accompanied with forward sale contract of NMCE.
The quantum of finance has also been growing in recent contracts.
For the July contract, 47 tonnes of rubber were financed.
In all, 1,698 tonnes of rubber and 1,465 tonnes of pepper were financed since the inception of the scheme in November 2004. Punjab National Bank financed pepper and rubber contracts valued at Rs 26.79 crore.
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