NCDEX SAYS FUTURES PRICES DETERMINED BY FORCES OF
DEMAND AND SUPPLY
Date: 29/3/2012
NCDEX, the premier agri commodities exchange in the country has responded on the move by the Forward Markets Commission (FMC) to ban the futures trading in Guarseed and Guargum by stating that the exchange provides a trading platform to buyers and sellers, under the regulatory supervision of the FMC. The contracts traded in the exchange are anchored to the physical market and therefore, prices are determined by forces of demand and supply.
The Forward Markets Commission yesterday stopped futures trade in guar complex on commodity exchanges after a series of regulatory measures failed to check the price rise. The guar futures and spot prices witnessed a relentless surge since November last year. Prices of guar seed futures have been rising continuously since November and have gained in excess of 500 per cent during this period.
While the Guar seed output during 2011-12 season is estimated at 12.10 lakh MT compared to 15.46 MT in 2010-11, the export demand has far exceeded the local supply. According to APEDA, exports of Guar gum from April to October 2011 were 3.48 lakh tonnes and which by end of November 2011 stood at 6.71 lakh tonnes compared to 2.28 lakh tonnes during the same period last year denoting a rise of 194.13%.
The exchange noted that wherever any exuberance is witnessed in the trading of the contracts in the exchange, timely and appropriate action has been taken by the FMC and the exchange. A series of such measures have been taken for guar contracts.
The Forward Markets Commission yesterday stopped futures trade in guar complex on commodity exchanges after a series of regulatory measures failed to check the price rise. The guar futures and spot prices witnessed a relentless surge since November last year. Prices of guar seed futures have been rising continuously since November and have gained in excess of 500 per cent during this period.
While the Guar seed output during 2011-12 season is estimated at 12.10 lakh MT compared to 15.46 MT in 2010-11, the export demand has far exceeded the local supply. According to APEDA, exports of Guar gum from April to October 2011 were 3.48 lakh tonnes and which by end of November 2011 stood at 6.71 lakh tonnes compared to 2.28 lakh tonnes during the same period last year denoting a rise of 194.13%.
The exchange noted that wherever any exuberance is witnessed in the trading of the contracts in the exchange, timely and appropriate action has been taken by the FMC and the exchange. A series of such measures have been taken for guar contracts.
Powered by Commodity Insights
MOST ACCURATE NCDEX TRADING TRENDS FOR TODAY
ReplyDeleteSOYBEAN (20 DEC.) TREND: CONSOLIDATE RES 1: 3905 RES 2: 3955 SUPP 1: 3850 SUPP 2: 3805 STRATEGY: BUY ON DIPS
NCDEX Tips