Wheat contract cooling period raised to 30 mins

The National Commodity & Derivatives Exchange (NCDEX) has modified contract specifications as per directives received from the regulator the Forward Markets Commission (FMC).

According to directives the cooling period for all wheat contracts will now be extended from 15 minutes to 30 minutes after the price hits its first limit of 4 per cent on either side with immediate effect.

Apart from that the exchange has also levied 5 per cent additional margin on client level net long and short open positions in all contracts of chana effective end of day positions as of July 14. The said additional margin would be collected in cash during normal pay-in time daily.

The directive also said that any additional or special margins existing or, hereafter, imposed pursuant to directive of FMC on contracts of urad and tur will, henceforth, be payable in cash during normal pay - in time daily.

Thus, existing additional margin of 10 per cent being levied in urad on long side positions will now be collected in cash daily during normal pay-in time effective July 17 end of the day position.

The leading agri commodities futures trading platform has also made delivery-related fundamental changes in contract specifications of raw jute for settlement month of September and October. The changes would be effective July 15.

Delivery has been made compulsion for all outstanding positions failing which a 5 per cent (of final settlement price) penalty would be imposed on both longs and shorts if they fail to meet their delivery obligations.

As per old specifications "Upon expiry of the contracts, if any seller with open position desires to give delivery at a particular delivery centre, then the corresponding buyer with open position as matched by the process put in place by the exchagne shall be bound to settle by taking physical delivery."

In addition, the exchange has also fixed moisture content in deliverable wheat which should be maximum upto 22 per cent for July-September contracts. Allowable moisture content may be extended upto 24 per cent with a discount of 1:1 for the aforementioned contracts.

For the contracts between October and December, the allowable moisture content has been fixed at 20 per cent, while the contracts between January and June, the same has been confined at 16 per cent.