Commodity exchanges NCDEX and MCX today launched futures trading in castor seed contracts, which attracted good participation from investors on the first day.
Agri-commodity bourse NCDEX relaunched castor seed future contracts, nearly a year after its trade was suspended by regulator SEBI on suspected manipulation.
On the NCDEX platform, castor seed was quoting in the range of Rs 3,897 to Rs 3,970 per quintal for delivery in the months of February, March and April.
Whereas at rival bourse MCX launched castor seed contracts for the first time and the commodity was quoting Rs 3,890-3,930 per quintal for February and March month delivery.
The future price of castor seed quoted on the two exchanges was higher than the spot price of Rs 3,715-3,818 per quintal quoted today at the Deesa mandi in Gujarat's Banskantha district.
"There was very good participation from all players in castor seed futures on both exchanges on the first day. Trade volumes were good," said Harish Galipelli,Head(Commodities and Currencies at Inditrade Derivatives and Commodities).
It may be noted that MCX is charging lower transaction fee at Rs 0.50 for Rs 1 lakh of turnover to attract more investors on its platform. NCDEX is charging Rs 2 for Rs lakh of turnover at present.
It needs to be seen if MCX, which has over 85 per cent market share with large presence in metals, can get more investors on its platform considering rich experience the NCDEX has in handling agri-commodities and strong delivery system in place.
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