Malaysian Palm Oil Council India

NEWS

October 08-2010

Commodity markets regulation likely to be tightened

Tighter regulation of commodity markets is on the cards, even as the government seeks to ensure wider participation of financial entities.Addressing a meet on the plans of NCDEX here on Friday, its Managing Director and CEO, Mr R. Ramaseshan, said, “The opening up has to be done cautiously, as a graded process, to ensure that it does not distort the price discovery system and the integrity of the process does not suffer. Surveillance mechanisms would have to be strengthened.

”Mr Vijay Kumar, Chief Business Officer, NCDEX, said two million tonnes of agricultural commodities were traded everyday, “with the contracts linked strongly to physical delivery.

”While in agriculture, most of the participants are those actually in the trade, there is retail investor participation in the non-agriculture commodities, Mr Vijay Kumar said.

While elaborating on NCDEX's entry into steel and oil, Mr Ramaseshan said that “in metals, India is a price follower, with a limited role in price discovery.” However, he said that the commodity exchanges “are poised for growth” in view of the growth prospects of India and China.

Mr M.K. Ananda Kumar, Chief, Corporate Services, said that the total traded value on the exchange increased by 54 per cent in the first half of this financial year, over the same period last year.

The traded value in metals (other than bullion) increased by 72 per cent in the first half of this fiscal, while in the case of energy and agriculture the growth was 25 per cent and 12 per cent, respectively.

The proposed amendment to the Forward Contracts Regulation Act aims to strengthen regulation, allow for the introduction of a greater variety of financial instruments and ensure wider participation, Mr Ramaseshan said.

Source : The Hindu: Business Line

Line Edible oils oscillate on global cues

Our Correspondent

Mumbai, Oct. 8

Spot prices of imported edible oils such as palmolein and soya oil along with sunflower and cotton oil increased by Rs 5-7 for 10 kg on Friday.

The market trend was initially firm on higher foreign (Malaysian) market, but it could not sustain the rally and cooled down later on, in line with the international market.

Taking cue from foreign markets, Indore NBOT soya futures came down sharply before reaching a high in the beginning.

Higher new crop arrivals at producing centres kept groundnut and rapeseed oil steady.

In Mumbai spot market, lack of fresh demand kept volumes at a low level. Late on Thursday evening, in tandem with the foreign market, refineries (Ruchi and Liberty) sold 2,000-2,200 tonnes at higher rates and about 200-250 tonnes of resale was done, taking cue from firm foreign markets.

Due to this heavy trade volume, on Friday, there were very few buyers in the market. In palmolein, about 100-120 tonnes were sale-traded in the range of Rs 454-456.Malaysia, NBOT futures

Bursa Malaysia Derivatives crude palm oil futures closed higher with November at 2,784 ringgit (MYR) against 2,800,

December ended at 2,760 (2,786) MYR. Indore NBOT soya oil October contracts ended at Rs 483.50 (Rs 488.50) and November at Rs 493.40 (Rs 497.30).Mumbai rates

Spot rates of groundnut oil, measured in Rs/10 kg: 850 (850), soya refined oil 475 (470), sunflower expeller refined 555 (550), sunflower refined oil 600 (595), rapeseed refined oil 560 (560), rapeseed expeller refined 530 (530), cotton refined oil 494 (487) and palmolein 454 (451).

Source : The Hindu: Business Line