Big jump in commodity derivative trading in July

The turnover of commodity derivatives on Indian exchanges surged nearly 23 percent in July from the previous month, reaching Rs 45.8 lakh crore, according to the monthly bulletin of the Securities and Exchange Board of India (SEBI). The turnover rose across three exchanges but fell in one.

The Multi Commodity Exchange of India (MCX) saw its turnover rise by nearly 23 percent month-on-month (MoM) to Rs 44.9 lakh crore. The National Commodity and Derivatives Exchange (NCDEX) reported a 24 percent rise in turnover, reaching Rs 13,680 crore. Meanwhile, the National Stock Exchange (NSE) saw a 39 percent increase, with a turnover of Rs 79,780 crore. However, trade in commodity derivatives dipped 7.7 percent on the Bombay Stock Exchange (BSE) with a turnover of just Rs 3 crore.

On the MCX, the farm segment turnover jumped 84 percent in July, while the non-agricultural segment grew by 10 percent. The increase in NCDEX turnover was driven by significant gains in castor seed, guar seed, kapas, guargum, and cotton seed oil cake, which rose by 105.9 percent, 47 percent, 32.7 percent, 30.4 percent, and 21.9 percent, respectively.

MCX dominated the market, accounting for 98 percent of the total turnover followed by NSE at 1.7 percent and NCDEX at 0.3 percent. Farm commodities contributed 0.3 per cent to the overall turnover, while non-agricultural commodities made up 99.7 percent. The agricultural segment's total turnover rose 22 percent MoM to Rs 13,760 crore, while the non-agricultural segment increased nearly 23 percent to Rs 45.7 lakh crore.

Futures contracts accounted for 13 percent of the total turnover, while options contracts comprised 87 percent. The overall turnover for futures rose by 10 percent from the previous month to Rs 5.8 lakh crore, while options turnover surged nearly 25 percent to Rs 40 lakh crore.