NCDEX made some modifications in Castor Seed and Coriander contracts expiring in January 2015

Mumbai, December 22, 2014: NCDEX had on Friday made some modifications in the Castor Seed and Coriander contracts expiring in January 2015. As per the directives of commodity market regulator Forward Market Commission (FMC), the staggered delivery in both the commodities shall commence from 29th December 2014; which would ordinarily have begun from 12th January 2015.  This has been done to facilitate smooth deliveries of goods in light of the growing OI on the exchange platform.

Additionally, pre expiry margin in case of January 2015 contract shall be levied from December 26, 2014 in a progressive and linear manner everyday so that buyers and sellers pay cumulative margins equal to 100% of the value of the contract as margin on the contract expiry date. According to an available information with cityairnews.com the OI in castor seed has been consistently rising, it stood at 444,850  MT on December 19, 2014. This coupled with the rising deposits in exchange approved warehouses; prompted the move to begin early deliveries so as to encourage smooth deliveries to take place through the clearing system of the exchange. In the case of Coriander, with no lean month contracts in February and March 2015, early delivery is being facilitated.  The OI in Coriander stood at 31,320  MT on December 19th 2014.

“We have extended our support to the market and we see a reduction in OI concentration in the January  2015 contract and rolling positions to the February 2015 contract in Castor seed; giving hedgers an excellent platform for rollovers”, said Samir Shah, Managing Director, NCDEX.

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