Commodity markets regulator FMC has discontinued guarseed and guargum contracts for October...
Commodity markets regulator FMC has discontinued guarseed and guargum contracts for October, November and December 2014 at the MCX platform due to insufficient liquidity in them.
“The Commission on October 20 approved discontinuation of the October, November and December 2014 Guarseed and Guar Gum contracts at MCX,” Forward Markets Commission (FMC) said in its latest report.
The contracts have been discontinued because of insufficient liquidity, a senior FMC official said.
Currently its competitor NCDEX is offering guarseed and guargum contracts for delivery upto March 2015.
FMC has also asked exchanges to charge a minimum initial deposit amount of 5 per cent in case of guargum and guarseed keeping in view the recent price movement and volatility.
With the arrival of guar crop, prices of guarseed and guargum in the futures market have come under pressure.
The future price of guarseed for December month delivery at the NCDEX are quoting over Rs 5,000 per quintal now, as against Rs 6,540 in August. Similarly, the future price of guargum has declined to Rs 14,200 per quintal from the peak of Rs 17,800 in the same period, as per the exchange data.