Rubber, potato up after trading in four banned commodities starts

Written by Commodities Bureau | New Delhi | Updated: Dec 6 2008, 05:17am hrs
Prices of four commodities futures which resumed trading on Thursday after a more-than six-month-long suspension at all national commodity exchanges, showed mix trends. While soyaoil and chana traded weak when the session opened, rubber and potato remained firm.

By close of the days session at the MCX, potato (Tarekeshwar) contract went up by more than 11% to Rs 477.40 per tonne for the March 2009 contract, while the refined soyoil Feburary 2009 contract closed down by 4.86% to Rs 447.15 per 10 kgs. The rubber March futures rose by 3% to Rs 5,981 per quintal, while chana for February 2009 delivery closed at Rs 2226 per quintal.

On Wednesday, the Forward Markets Commission (FMC) allowed all exchanges to re-start futures trading in refined soyoil, rubber, potato and chana after the six-month -long suspension lapsed on Sunday. Trading in these commodities was suspended in May following complaints that futures trading fuelled inflationary pressures. The suspension was extended by two months in September, as inflation was still not under control.

Of the four suspended commodities, potato was largely traded on MCX platform, while chana and soya oil were actively traded on NCDEX and rubber on NMCE. At open, soya oil for January 2009 delivery fell by 2.71% at Rs 447.55 per 10 kg on the NCDEX. Rubber on the MCX and NMCE platforms opened firm. Refined soyoil was one of the big-volume grossers in almost all exchanges before trading was suspended.

Market analysts said that traders participation was seen firm in these re-launched contracts. Traders are happy that trading in these commodities has resumed, but they (will) take some time for active participation.

Meanwhile, sources said that buoyed by the good response towards re-launched futures, FMC is now also contemplating pressing for re-starting futures in wheat, rice, tur and urad. Trading in these essential commodities was stopped in 2006 following pressures by the governments then Left allies.