Total aggregate futures trading turnover of the Multi-Commodity Exchange of India (MCX) and the National Commodity & Derivatives Exchange (NCDEX) – the two major national commodity exchanges in the country – has come down by 20% to Rs 4.24 lakh crore during the month of August 2008 from Rs 5.32 lakh crore registered in July 2008, mainly due to meltdown in the most globally traded commodities mainly crude oil and gold in the last month.
Of this, the MCX, which mainly deals in the futures-trading of bullion, energy and metalsm, has registered an aggregate turnover at Rs 3.71 lakh crore in August, down by 20% from Rs 4.64 lakh crore in the last month due to sharp fall in prices of globally-traded commodities. NCDEX dealing in the agri-commodities futures-trading has also registered total turnover at Rs 53,827 crore, down by 22.6% from Rs 68,280 crore in July due to uncertainty over futures-trading agri-commodities . Active trade was seen in bullion, energy and metal products during the fortnight period. WTI crude oil spot prices fell from $121 per barrel to $109 during the month while gold London spot price was also down from $920 to $840 an ounce during the month.
?Global commodity markets have been very volatile in the past few days and as a result, most traders are trying to avoid trading in them. On the other hand, the government has de-listed eight major agri-commodities on the commodity exchanges,? an analyst said. However, the trading volume has shifted some extent to globally-traded futures-commodities such as gold, silver and crude oil.
?There is still uncertainty about futures-trading of major agri-commodities. The government has banned futures- trading of eight major agri-commodities and so far nothing has been done to regain the confidence of market players. It will have a definite impact on futures-trading,? a leading agri-trader said. It can be noted that de-listing of four major commodities – potato, chana, soya oil and rubber has adversely affected market sentiment regarding futures-trading.