NMCE to launch futures trading in cotton soon

NEW DELHI: Amid fresh arrival of new cotton crop in the market, the country's third leading commodity bourse National Multi-Commodity Exchange plans to launch, for the first time, futures trading in cotton soon.

"We will launch futures trading in cotton by next week," National Multi-Commodity Exchange (NMCE) Managing Director Kailash Gupta told PTI.

"We are still working on the contract specification and other issues," he said.

Sacking, Isabgul seed and rape-mustard seed are other commodities traded on the exchange.

Cotton futures are currently traded on MCX and NCDEX. MCX has one running contract for whole year, while NCDEX has three contracts. Two cotton varieties -- V-797 and Shankar Kapas -- are traded on these exchanges with a daily volume of 200-500 lots.

At 1330 hours, the most-active April 2009 contract of Shankar Kapas variety was trading down by Rs 2.5 at Rs 533 per 20 kg on the NCDEX counter. whereas on the MCX, April 2009 contract of V-797 variety was down by Rs two at Rs 522 per 20 kg.

New arrivals of cotton have begun this month and would last till April next year.
According to trade sources, cotton production is estimated to be around 310-320 lakh bales in 2008-09 same as that of the previous year.

Ahmedabad-based NMCE registered a turnover of Rs 883 crore during the first fortnight of August.