NCDEX and MCX impose additional margins on potato futures
In its endeavor to overcome volatility in potato futures trade, National Commodity and Derivatives Exchange (NCDEX) and Multi Commodity Exchange (MCX) of India have imposed a 10 percent additional margin on sale positions and 15 percent margin on buy positions.
While the MCX margin order takes effect from April 18; an unnamed official said that the NCDEX margins "will be effective from April 21."
Following two straight days of weakness, potato futures rebounded in India - the world's third largest potato-producer, after China and Russia - on Monday, touching the upper limit of four percent, as speculators tried to cover up their short positions.
According to traders and market watchers, the recovery in potato prices at the futures market was largely supported by the supply shortfall and demand increase in the physical markets. Currently the wholesale prices of potato are ruling between Rs 6 and Rs 6.50 per kg.
On the MCE, potato for delivery in May, June and July traded in the positive zone. While the July contract hit the upper limit at Rs 998.30 per 100 kgs, with the contract recording a business turnover of three lots; the June contract recovered to trade at Rs 976.90 per 100 kgs in a business volume of 73 lots, and the May contract traded at Rs 892 per 10 kgs, with a 303 lots' business turnover!