April contracts of jeera, chana, rubber draw big interest

These three commodities have had huge physical deliveries of 45 mt, 51 mt and 580 mt respectively.

Jignesh Shah, managing director, MCX said, "We are encouraged by the rising volumes and the deliveries on the exchange across all commodity segments. This development on the exchanges in terms of contracts that has resulted into large physical delivery has proved the robustness in the support mechanisms of the exchange. We are glad that the trading community has now come of the age and is exploring opportunities to discover better price on a nationwide electronic platform offered by the MCX."

The Jeera April 2005 ex-Unjha contract expired with 45 metric tonne (MT) physical delivery at Unjha warehouse at Gujarat and the Chana April 2005 contract also witnessed a delivery of 580 mt, delivery ex-Delhi.

The storage costs incurred for physical delivery of Jeera was Rs 4.25 for 60 kg per month and it stood at Rs 3.00 per 100 kg for a month for storage.

All charges associated with the delivery are borne by the seller till the payout date and later they are borne by the buyer.

The physical delivery in commodities indicates the transparency and simplistic procedures of the final clearing and settlement operations.

The MCX initiative has provided the rubber, jeera and pulses industry participants with immense hedging and investment opportunities, facilitating best price discovery, standardisation, uniformity and highest quality norms benefiting the entire industry.

Currently, the exchange clocks an average daily turnover of Rs 1,500 crore, offering futures trading contracts in bullion, crude oil, food grains, fibre, metals "" ferrous and non ferrous "" pulses, plantations, and other agri-commodities.