Agri commodities: FMC decision on night trading,Saturday trade laudable

The brokerages and traders were of the view that Saturday trading was adding up to increased costs while volumes were low. Investors on the other hand had to keep a constant tab on the market movements even on Saturday

KOCHI (Commodity Online):

The recent decisions of India's Commodity market regulator Forward Markets Commission (FMC) to declare holiday for commodity futures market on Saturdays and introduce evening trade in agri-commodities will be widely welcomed by the broking and trading community in the country. There was no rationale for having trade in commodity futures on Saturday from 10 am to 2 pm when all other markets in the world including equity markets remained closed. 

 

The new arrangements will come into force from April 1, 2014.

 Evening trade

Now agri-commodity futures trading begins at 10 am in the morning and ended at 5 pm and by this time US and European exchanges begin active trading in several commodities that are of relevance to India. In the absence of evening trade, traders in agri-futures were unable to effectively hedge their exposure nor speculate as overnight developments in global markets could cause their positions to go adverse causing losses.

 

Only ten globally referencable agri-commodities have been included for evening trade:

1. Soya Oil
2. Soya meal
3. Crude Palm Oil
4. RBD Palmolein
5. Cotton
6. Kapas
7. Cotton seed oil cake
8. Cottonseed
9. Sugar
10. Maize

The trade timings shall be till IST 11.30 p.m./11.55 p.m