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NCDEX Potato Weighs Down On Profit Booking: April 22, 2012

ByCommodityOnline
Published 04/20/2012, 05:45 AM
Updated 05/14/2017, 06:45 AM

NCDEX potato futures traded sideways on Thursday and has been seen consolidating in the last few trading sessions.

The April contract witnessed a good correction due to rollover of positions due to the upcoming expiry today while the far month contract traded in a rangebound matter. The futures settled 1.74% lower in the April contract.

As per circular issued by NCDEX dt April 10, 2012, A Minimum Initial Margin of 10% of the value of the contract or VaR based margin whichever is higher will be imposed on all running contracts and yet to be launched contracts of potato with effect from beginning of trading day Thursday, April 12, 2012.

It is clarified that the Special Margins, Additional Margins or any other margins levied shall be over and above the revised Minimum Initial Margin.

Production Scenario

The cold storages are said to be full to the extent of 95% of their capacity. The market's participants expected the production to cross last year’s levels, but now they expect the production to fall from last year.

According to the initial estimates of National Horticultural Research and Development Foundation (NHRDF), potato output in the season 2011-12, is estimated higher at 43.6 mn tn compared to 40 mn tn last year. However, markets are expecting further decline in output due to late blight disease by 20%.

The output in UP and West Bengal, the two biggest potato growing states is expected to be lower at 12.8 mn tn (13.6 mn tn in 2011) and 10-15% (13.3 mn tn in 2011) respectively.

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