Ahmedabad, June 24 (UNI) The Castorseed June-2008 contract of the National Multi-Commodity Exchange (NMCE), registered a landmark physical delivery of 4,120 Metric Tonnes (MT) at its various godowns in the designated delivery centre at Kadi.
It amounts to 16.43 per cent of the total trade, which is a high percentage of delivery.
Several members from different parts of the country, while participating at the NMCE's Castorseed Committee's Review Meeting here, expressed their satisfaction at hassle-free delivery and payment for such huge underlying assets, an NMCE release said here today.
Meanwhile, many investors interested in ''Vyaz Badla'' and attracted to trade on NMCE, have expressed plans to hold the physical castor and deliver it against their August-2008 contract, an NMCE release said here today.
The bimonthly futures contract of Castor seed (10 MT) is traded on NMCE in lots of 10 MT (10,125 kg to be precise) and the prices are quoted in rupees per quintal. When the June-2008 contract expired on June 14 last, the closing prices of June and August contracts were Rs 2,680 and Rs 2,771 respectively, and the June-August spread was in the range of Rs 126 and Rs 128.
Commenting on the occasion, NMCE Chief Executive Officer (CEO) Anil Mishra said that several meetings of product committee were held, warehouse facilities were arranged and producers, investors, industry consumers and traders, were approached. He thanked all the stakeholders for their hard work to ensure successful and smooth delivery.
The success of the smooth delivery at NMCE is attributed to a sound and reliable warehouse receipt system, for a fair settlement of all outstanding positions. In the traditional system of castor seed futures, since the delivery from the seller's godown was to be lifted by the buyer, it was a hassle, which normally results into serious disputes.
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