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M.R. Subramani

``There has been a constant rise in soyabean futures. Prices are hitting the upper ceiling almost daily and are increasing by Rs 30 a week.''

CHENNAI, June 5

THE Indore-based National Board of Trade (NBOT), which manages soya and mustard products futures, plans to raise the margin money for soya oil trading for the second time in view of a constant rise in the prices.

"The prices for soya oil futures are rising constantly. Hence, we are likely to raise the margin money again by three per cent," NBOT sources told Business Line.

A fortnight ago, NBOT had raised the margin money to four per cent from the two per cent. Margin money is a fraction of the amount to be paid on the value of futures contract entered into by a speculator or trader.

"The margin committee of the exchange will decide on this," the sources said. "There has been a constant rise in soyabean futures. Prices are hitting the upper ceiling almost daily and are increasing by Rs 30 a week."

The upper ceiling or marker price is being reset daily. The Forward Market Commission (FMC) gave permission for revision of the daily market price a fortnight ago.

"The pay-in-pay-out period has also been revised accordingly," they said and denied there was any settlement problem in the exchange. "Trading is taking place as per rules," they said.

Soya oil futures have been witnessing a volume turnover ranging between 17,000 lots of one tonne and 39,000 tonnes during the last two months. Volume turnover in soyabean, soyameal and mustard/rapeseed products is negligible.

"The mustard futures is doing well, though not as good as soya," they said.

Asked about online trading, the sources said it was expected to go on stream by July-end. "The hardware will be ready this week. We will have the network, server and other things in place in quick succession," they said.

NBOT, which was given permission to conduct futures in RBD palmolein in April, is getting ready to launch it soon. Mumbai, Kandla and Chennai have been included among the delivery points for the contracts.

On futures trading in other products, the sources said it would depend on the success of online trading.

"We will be concentrating on online trading for the next 6 months. Based on its success, we will decide the future course."

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