NCDEX plans to re-launch coffee futures trading
The National Commodity Derivatives Exchange (NCDEX) plans to launch 'Robusta Cherry AV'contract for futures trading and has sought permission from the market regulator Forward Markets Commission (FMC).
By PTI |
MUMBAI: The National Commodity Derivatives Exchange (NCDEX) plans to launch “Robusta Cherry AV” contract for futures trading and has sought permission from the market regulator Forward Markets Commission (FMC).
After getting approval from FMC, the exchange will relaunch the Robusta coffee contract, the industry sources said, adding the exchange has sought permission from the market regulator to make changes in the specifications of the contract.
The exchange stopped futures trading in Robusta coffee in January 2007 following lukewarm response from participants. As government has stopped launching of new agricultural commodities in the futures market till the Abhijit Sen Committee submits its report, NCDEX has applied to the FMC for making changes in the specifications of the robusta coffee contract.
The volume of Robusta coffee, that included the Cherry AV grade also, dipped to nine tonne in 2006 from 76 tonne in the previous year.
In the entire 2006, trade was noticed only in May and July in Robusta coffee with the volume at 7.5 tonne and 1.5 tonne respectively.
The exchange hopes to generate enough trading interests in the proposed grade as it feels it will segregate the Cherry AV from other grades that were traded earlier.
The Robusta coffee production in 2006-07 season ending September is estimated at 1.9 lakh tonne out of a total of 2.7 lakh tonne likely to be produced during the year. The coffee industry expects output in the next season starting October 2007 will be about three lakh tonne.
After getting approval from FMC, the exchange will relaunch the Robusta coffee contract, the industry sources said, adding the exchange has sought permission from the market regulator to make changes in the specifications of the contract.
The exchange stopped futures trading in Robusta coffee in January 2007 following lukewarm response from participants. As government has stopped launching of new agricultural commodities in the futures market till the Abhijit Sen Committee submits its report, NCDEX has applied to the FMC for making changes in the specifications of the robusta coffee contract.
The volume of Robusta coffee, that included the Cherry AV grade also, dipped to nine tonne in 2006 from 76 tonne in the previous year.
In the entire 2006, trade was noticed only in May and July in Robusta coffee with the volume at 7.5 tonne and 1.5 tonne respectively.
The exchange hopes to generate enough trading interests in the proposed grade as it feels it will segregate the Cherry AV from other grades that were traded earlier.
ADVERTISEMENT
The Robusta coffee production in 2006-07 season ending September is estimated at 1.9 lakh tonne out of a total of 2.7 lakh tonne likely to be produced during the year. The coffee industry expects output in the next season starting October 2007 will be about three lakh tonne.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
