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NCDEX Improves Standardization of RM Seed - Eases Deliveries

Sep 30, 2014   17:50 IST 
Mumbai, Maharashtra, India

Contract Specifications:

Moisture content 6.5% maximum with moisture adjusted weight for 5%

Foreign matter 1.5% maximum

Oil content below 39% rejected

Jodhpur added as additional delivery center

 

NCDEX, the leading commodity exchange, announced changes in its R M Seed futures contract. Modified contract specifications will be applicable for contracts expiring in April 2015 onwards. These will be available for trade from 1st October, 2014. The contract has been simplified by reducing the acceptable grades of RM Seed. Now there would be only 12 grades for premium/discount calculation instead of 224 grades earlier. This standardization makes it much easier for traders to deposit on the exchange platform and streamlines the delivery process for the buyers too. 

 

The modified contract parameters of Mustard will bring more transparency and clarity to the market participants involved in the physical delivery of Mustard Seed on NCDEX platform. It will increase the confidence of the buyers on the exchange quality and would be rewarding for the depositors at the same time.” said Mr. Samir Shah, Managing Director and Chief Executive Officer, NCDEX.

 

The Exchange has further simplified the premium discount calculations too. Recognizing that moisture is largely governed by climatic conditions; it has done away with using moisture as a criteria for premium discount calculations. Any upward deviation from the basis moisture will now only be adjusted in the weight and will have no bearing on the prices.

 

Further, now only RM seed having an oil content of 39% and above will be accepted as against the earlier 37%. This will result in  improved quality of R M Seed being delivered on the Exchange platform and premium and discount will be calculated only on the basis of the oil content. Including Jodhpur as additional delivery center will provide effective hedging for the value chain participants of Jodhpur and nearby areas.

 

These changes have been made to bring close integration with the physical market.

 

ABOUT NCDEX:

As India’s leading online exchange, NCDEX is where customers repose trust. It offers the widest range of benchmark products across agriculture, metals and precious metals. NCDEX brings buyers and sellers together through its electronic trading platform. With a widely held shareholding, it enjoys the distinction of being the only exchange in the country promoted by national-level institutions. The institutional promoters and shareholders of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nation-wide reach, technology and risk management skills.

 


 
 
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