The Hindu Business Line : Trading in agri futures dips in Feb

Total value of trade in agriculture commodities in the first 11 months of the current financial dropped 33 per cent to Rs 5.55 lakh crore against Rs 8.26 lakh crore last year.

On the other hand, bullion dominated the turnover table registered a gain of 43 per cent in February to Rs 3.14 lakh crore against Rs 2.20 lakh crore recorded last year.

Between Arpil and February 2009, bullion turnover jumped 76 per cent to Rs 26.18 lakh crore (Rs 14.90 lakh crore).

Mr Tarun Satsangi, Assistant Vice-President, Bonanza Commodity, said: “Faced with a cash crunch and lack of surplus fund has dented investors’ confidence in agriculture commodities.”

Moreover, most of the agriculture commodities such as spices and oil complex are at a consolidation stage and have seen a sharp fall in prices, he added.

“The high volatility and sharp rise in gold prices drove investors to hedge their positions in the commodity futures exchange, while the agriculture commodities could somehow not really pick up after the ban on four commodities was lifted by the government,” said an analyst.

Repercussions of crunch

The turnover in all the 22 commodity futures exchange was up 11 per cent at Rs 4.84 lakh crore (Rs 4.34 lakh crore) in February, according to the latest FMC data. Turnover in the first 11months of the fiscal grew 29 per cent to Rs 46.44 lakh crore against Rs 35.96 lakh crore logged in the same period last year.

Turnover in other commodities, apart from bullion and agriculture, fell six per cent to Rs 1.15 lakh crore (Rs 1.22 lakh crore). On a cumulative basis, it was up 15 per cent at Rs 14.71 lakh crore (Rs 12.79 lakh crore) between April and February 2009.

MCX turnover in February was up 23 per cent at Rs 4.27 lakh crore against Rs 3.47 lakh crore in the same period last year while NMCE’s jumped 354 per cent to Rs 8,295 crore (Rs 1,832 crore). However, NCDEX turnover dipped 40 per cent to Rs 41,739 crore (Rs 69,234 crore).

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Trading in agri futures dips in Feb