Login ID:
Partner Login
Contact Us : 7066511911

Exchanges Register 38% Drop in Daily Average Commodity Volumes in May

28 May 2020 9:00 am
 Comments 0 Comments  |  Comments Post Comment  |  Font Size A A A 
Mumbai (commodities control) - Indian exchanges have reported 38% decline in commodity derivatives business since the Covid-19 pandemic started spreading across the country. Between February and May, the daily average turnover in commodity futures trading slumped by 38%. Multi Commodity Exchange of India (MCX), reported its daily average turnover (DAT) at Rs 15,658 crore in April 2020, the lowest since 2013. One reason is that after negative price settlement in crude oil futures in April, many brokers discontinued trading in crude oil while other increased margins. Then the lockdown dented trading sentiment and the closure of factories also reduced hedging requirements for companies, small and medium enterprises (SMEs) in commodities. The DAT at MCX, however, recovered to Rs 23,829 crore in May from Rs 15,658 in April, but still shows a massive decline from its level of Rs 37,727 crore in February and Rs 27,252 crore in May 2019. NCDEX, which is working on its initial public offerings (IPO), has posted a DAT of Rs 469 crore for May 2020 as against Rs 1,304 crore for the pre-Covid month of February this year and Rs 2,104 crore in the comparable month last year. Closure of agricultural produce market committees (APMCs) in the nationwide lockdown exacerbated the decline. In the absence of a spot market, price discovery of all agricultural commodities was impacted. One of the reasons for lower volumes could be the reduction in trading time. Increasing pace of Covid-19 patients prompted both the exchanges and the Securities and Exchange Board of India (Sebi) to cut trading time in April. The original trading time, however, was restored by MCX in the last week of April. Indian Commodity Exchange (ICEX) also reported a sharp fall in daily average turnover to Rs 27 crore from Rs 187 crore in February 2020 and Rs 209 crore in the comparable month in 2019. BSE and NSE also saw sharp fall in commodity derivatives.

  Rate this story 1 out of 52 out of 53 out of 54 out of 55 out of 5 Rated

   Post comment
Comment :

Note : This forum is moderated. We reserve the right to not publish and/or edit the comment on the site, if the comment is offensive, contains inappropriate data or violates our editorial policy.
Name :  
Email :  

Top | Post Comment  

Latest Market Commentary
India Spices Export Offer Price - 14 JULY 2020
Spot Cardamom Weakens
Red Chillies: Warangal, Guntur Mandis Shut due to Virus...
Jeera: Futures Crack, Spot Prices Steady
Coriander: Spot Price Steady, Futures Firm
Top 5 News
India Spices Export Offer Price - 14 JULY 2020
Moong Dips At M.P/U.P/Rajasthan
Spot Cardamom Weakens
Chana Trade Mixed At Major Spot Markets
Maharashtra Sugar Mill Prices – 14 JULY 2020
Top 5 Special Reports
USD/INR (Jul ‘20) – Inflection Point: Retesting Resista...
CRB Index & U.S. Dollar Index
Copyright © CC Commodity Info Services LLP. All rights reserved.