KOCHI, JAN. 16:
The National Multi Commodity Exchange (NMCE) has registered 800 per cent increase in rubber delivery on the exchange in December contract.
In December, the exchange registered the largest delivery ever on the exchange.
It was 1,544 tonnes against 183 tonnes in December 2011, a rise of 843.72 per cent.
Producers and suppliers benefitted by giving huge delivery on the exchange because the exchange price was more attractive, said a statement from the NMCE.
The tapping season of rubber has just started, the statement issued here said.
NMCE has certified warehouse of CWC for delivery of rubber in Kerala near all the producing areas at Aluva, Ernakulam, Kakkanad, Kakkancherry, Kozhikode, Palakkad, Piravom Road and Thrissur.
The stock position in the exchange certified warehouse is displayed on the Web site of the exchange in which one could get the information of daily arrivals and despatch. The stock position as on January 11 was 6,581 tonnes.
The commodity exchanges are not only meant for physical delivery but also for price discovery and price risk management.
Threat of delivery is to keep the futures market aligned with spot market so that nobody is able to manipulate the price on the futures market and convergence takes place on the settlement date, the statement added.
Source: Business Line
