Kokata: The crude palm oil (CPO) contract has become the country’s largest traded farm futures contract in the first eight months of 2020, as volatile prices amid continued supply uncertainties in producing nations due to the pandemic pushed participation of both hedgers and speculators in the market.
According to data sourced from the Multi Commodity Exchange’s (MCX NSE -2.75 %) website, the average daily turnover in the crude palm oil contract was Rs 273.60 crore.
The daily volume averaged 39,068 tonnes, or over 5 per cent of the country’s monthly imports.
The turnover from January to August totalled 6.6 million tonnes, priced at about Rs 46,238 crore, the data showed.
“The exchange has constantly been engaged in providing an efficient and robust price discovery process through its outreach and regular consultations with all stakeholders in the agri value chain,” a senior MCX official said, adding that the increased participation was the result of the exchange’s efforts to engage with hedgers in managing their price risks.
View entirety: Economic Times