Date:22/07/2006 URL: http://www.thehindu.com/2006/07/22/stories/2006072214541900.htm

Business

Increase in physical delivery of commodities at NMCE

Staff Reporter

KOCHI: Physical delivery of commodities such as cardamom, coffee, guar seed, copra, pepper, `chana' and rubber took place at National Multi-Commodity Exchange of India Ltd. (NMCE) for the July 2006 contract. Most of the commodities marked a rise in physical delivery with an impressive rise in rubber. The chana physical delivery rose to 430 tonnes from 170 tonnes registered for the previous contract. The rubber physical delivery stood at 1,291 tonnes, according to a press release issued by the exchange.

Rubber prices increased in the initial stage of the series in line with global prices, but started taking a gradual dip from May 27. The series ended at Rs. 10,092. Pepper prices, on the other hand, declined in the beginning. After touching a low of Rs. 6,624 on June 14, they soared, reaching Rs. 7,798 towards expiry.

The NMCE has a robust physical delivery mechanism and offers a unique benefit to the trade participants by providing guarantee of contracts not only on financial terms but also on physical terms, the release said.