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INTRODUCTION

GLOBAL AND INDIAN SCENARIO

MARKET MOVING FACTORS

SPECIALTY OF WHEAT FUTURES CONTRACT AT MCX

WEB RESOURCES

I n di a i s o ne o f t h e ma in w h ea t pr od u ci n g a nd c o ns u mi n g c o un t ri e s o f t h e wo r ld . A ft er t h e Gr e en R ev ol u ti o n

i n t he 1 97 0' s a nd 1 98 0' s t he p r od uc ti on o f w he at h as s ho wn a h ug e i nc re as e. P un ja b a nd H ar y an a y ie ld t he

h i gh e st a m o un t o f w h ea t b e ca us e o f b e tt er i r ri g at i on f a ci l it i es . T h e w he a t c ro p n ee d s c o ol w i n te r s a nd h o t

s u m me r s , wh i c h i s w h y th e f er t i l e p la i n s o f t h e I n do - G an g e ti c r e g io n a r e t he m o s t c on d u ci v e fo r g r ow i n g it .

= E U -27 , C h in a, I n d ia a nd U S , a re t h e f ou r l ar g es t p ro d uc e rs a c co un t in g f or a ro un d 6 0% o f t h e t ot a l gl o ba l

production.

T h e m a jo r c o n su m i ng c o u n tr i e s o f w h e at a r e E U , C h i na , I n d i a, R u s s ia , U S A a n d P a ki s t a n.G l ob al b al a nc e sh e et r em a in s c o mf or t a bl e . W or l d p ro d uc t io n i s e s ti m at e d t o b e 657. 6 m i ll i on t on e s a nd

the en din g stocks a re estima ted to be 181.9 million ton es, highest sin ce yea r 2000, when it wa s

r e co rd e d a t 2 03 m i ll i on t o ne s .

I n di a h a s t h e l a rg e st ar e a i n t h e w or l d u nd e r w h ea t c u lt i va t io n. D ue to l ow er p ro d uc t iv i ty i t r a nk s t h ir d i n

terms of produ ction.

I n I nd ia , Wh ea t is s ow n d ur in g Oc to be r t o D ec em be r a nd h ar ve st ed d ur in g Ma rc h to M ay. T he w he at -

m ar ke t in g se a so n i n I n di a i s a s su m ed t o b e gi n f ro m Ap r il e ve r y ye a r.

T he m a jo r w he at p r od uc in g s ta te s o f I nd ia a re P un ja b, H a r ya na , U tt ar P ra de sh , M ad hy a P ra de sh ,

R a j as t h a n a n d B i h ar . W h i c h t o g et h e r a c c ou n t f o r a r ou n d 9 0 % o f t o t al p r od u c ti o n .

T h e t o t al pr o cu r e me n t o f w h e at by Go v er n m en t a g e nc i e s d u r in g l a s t 1 5 y e ar s r a n ge s f r om 8 t o 2 3 m i l li o n

ton s, a ccou n tin g for 15-30% of the tota l produ ction.

I n d i an g o ve r n me n t p la y s a k ey r o le i n d e c i di n g t he d o m es t i c m a r ke t s e nt i m e nt s .

M i n im u m s u p po r t pr i c es ( M S P) a n d C e n tr a l I s s ue Pr i c es ( C I P) a r e t h e i n s tr u m en t s u s e d b y g o ve r n me n t t o

m a in t ai n f oo d b uf f er s f or f oo d s e cu ri t y an d s t ab l e pr i ce s .

T h e m i ni m um su pp o r t p r ic e ( M SP ) i n 2 00 8- 0 9 w as h i ke d f ro m R s 1 00 0 t o R s 1 08 0.

W h ea t p ro c ur e me nt fo r t h e 2 00 9- 10 R a bi ma rk et i ng se a so n h a s r e ac h ed a r e co rd 2 5. 2 9 m i ll i on t on ne s

a s o n t h ir d w ee k o f M ay a ga in s t 2 2. 6 8 m i ll i on t on ne s p ro c ur e d i n t h e e n ti r e 2 00 8- 0 9 m a rk et i ng s ea so n .

2 00 8- 09 W he at d em an d s up pl y sc en ar io h as b ee n c om fo r ta bl e. T he 20 09 -10 W he at p ro du ct io n i s

e st im at ed t o b e 77. 7 m il li on t on es , Co ns um pt io n t o b e 72 .5 m il li on t on es , an d e nd in g s to ck s t o b e 17

m i l l io n t o n es .

= P r ic e t en d s t o b e l ow er a s h a r ve s ti n g pr og r es s es a nd p ro d uc e s t ar t s c o mi n g in to t h e ma r ke t . At t h e t im e

o f s o w in g a n d b e fo r e h a r ve s t i ng p r i ce t e nd s t o r i s e i n v i e w o f t i g h t s u p pl y s i t ua t i on .

W ea t he r h a s p ro fo un d i nf l ue n ce o n w h ea t p ro d uc t io n m a in ly i n H a r ya na & P un ja b . Te m pe r at u re p l ay s

c r u ci a l r o l e t o wa r ds m a t ur i t y o f w h e at a n d p r od u c t iv i t y.

C h an g e i n M i ni m um S u p po r t P ri c e ( MS P ) b y G ov t a nd t h e s to c k a va i la b le w i t h Fo od C o rp o ra t io n o f I n di a( F C I ) a n d t h e re l e as e f ro m o f fi c i al s t oc k s i n f lu e nc e s t h e pr i c e.

T h ou g h, i nt er n at i on al t ra d e i s l i mi t ed , t he u ps a nd d ow n s i n t h e p ro d uc t io n a n d c o ns u mp t io n a t al l t he

m a j or / m in o r p r od u c in g a n d c o n su m i ng n a t i o n d o e s i n f lu e nc e t h e l o n g - t er m p r i c e t r e n d.

= D e l iv e r y b a s ed c o n tr a c t w i t h m a i n d e l i ve r y c e n te r a t D e l hi an d a d d i ti o n al de l i ve r y c e n te r s a t K h a nn a ,

K a r na l , K a np u r, K o t a a n d I n d or e

C on tr ac t si ze i s 10 M Ts w it h ti ck s iz e of 10 P ai se . Wi th o ne R up ee c ha ng e in p ri ce p ro fi t/ lo ss i s o f R s.

1 00 o n e a ch c o n tr ac t .

I n ve s t or f r i en d l y: t o t a ke b e n ef i t o f a r b it r a ge o p p o r t un i t y be t w ee n p h ys i c a l ma r ke t a n d f u t ur e m a rk e t as

w e l l as b e t we e n f u t ur e m a rk e t to f u t ur e m a r ke t .

P er f ec t ly s ui t ed f or t r ad e rs , c o rp o ra te s , m i ll e rs a nd f ar m in g c o mm u ni t y t o h e dg e t h ei r p os i ti o ns w i th

delivery mecha n ism..

www.agricoop.nic.in www.imd.ernet.in www.fas.usda.gov www.agrima rknet.nic.in

www.agriwatch.com www.fao.org www.futuresource.com

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www.mcxindia.com

Wheat

F or p r iv a te c i rc u l at i on o n ly.

M ul ti C om mo di ty E xc ha ng e o f I nd ia L td ( MC X) i s a d em ut ua li se d e xc ha ng e w it h p er ma ne nt r ec og ni ti on f ro m t he

g o ve r n me n t o f I n di a . MC X o f fe r s f u t ur e s t r a di n g i n 5 5 c o mm o di t i es i n cl u di n g bu l l io n , en e r gy, g r ai n s, p l a st i cs , m et a l s, o i l

a nd o i ls e ed s, f ib re s , s p ic e s, p ul s es , su ga r, p la nt at i on s a nd c ar bo n c re di t s a s o n M a rc h 31 , 20 09 . Th e av er a ge d ai lyturnover on the MCX platform was Rs. 14,896.41 crore during fiscal 2008-09.

MCX i s No. 1

commodity

e xc ha ng e i n

India, with a

m ark et shar e of

ove r 88%( as o n M ar ch 3 1, 20 09 )

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www.mcxind ia.com

Note: P l e as e r e fe r t o t h e e xc h a ng e c i r cu l ar s f o r t h e l a te s t c o n tr a c t s p ec i f i ca t i on s a n d d e l iv e r y a n d s e t t le m e nt

procedures.

10/2009

E x c h an g e S q u ar e , S u r e n R o a d, A n d h er i E a s t, M u m b ai 4 0 0 0 9 3, I n d i a.T e l. N o . 9 1 - 22 - 67 3 1 8 8 88 i n fo @ mc x in d ia . co m w w w. m cx i nd i a. c om

F o r C u s t o me r S u p p o r t : + 9 1 - 22 - 6 6 49 4 0 4 0

T o g e t t h e l a t es t f u t u re s p r i ce o f a c o m m o di t y , s m s M C X < C om m o di t y N a m e> t o 5 8 8 8 8

Disclaimer: T h e i n fo r m at i o n p ro v i d ed h e r e i s n o t g u a ra n t e ed f o r i t s a c c ur a c y o r co m p l et e n es s . I t i s s o l el y m e a nt f o r i n fo r m a ti o n d i ss e m i na t i on a n d k n ow l e d ge s h a r in g .

N e i th e r Mu l t i C o m mo d i t y E x c ha n g e o f I n d i a L t d . ( M C X) n o r i ts e m p lo y e es a c c ep t s a n y li a b il i t y , w h a ts o e ve r , f o r an y t ra d i n g d e c i si o n a nd l o ss i n c u rr e d or a r i si n g

f r om t h e u se o f t h is p u bl i ca t io n . M C X o r a ny o f i t s a f fi l ia t es m a ke s n o w a rr a nt i es a s t o t he a c c ur a cy o f i n fo r ma t io n o r r e su l ts t o b e o b ta i ne d f r om i t s u s e.

CONTRACT SPECIFICATIONS OF WHEAT

Contract Horizon Six Months

Trading Period Monday to Saturday

Trading Session Monday to Friday: 10.00 am to 5.00 pm Saturday: 10.00 am

to 2.00 pm

Trading Unit 10MT

Quotation/Base Value 100 Kgs

Maximum Order size 500 MT

T ic k S iz e ( mi ni mu m p ri ce m ove me nt ) 10 p ai se

Price quotation Wheat (Standard Mill quality) Ex-Warehouse Delhi including all

ta xes.

Daily Price Limits 3 + 1 %

Initial Margin 5 %

Special Margin In case of additional volatility, a special margin at such other

p er c en t ag e , as d e em e d f i t, w i l l be i m po s ed i m me d ia te l y on

b o t h b u y a n d s a l e s i d e i n r e s pe c t of a l l ou t s ta n d in g po s i t io n ,

w h i ch w il l re m a in i n f o rc e ti l l vo l a ti l i t y p e r si s t s a f t er w h i c h t h e

specia l margin ma y be rela xed.

M ax im um A ll owa bl e O pe n Po si ti on C li en t- wi se - 6 00 0M T, Me mb er- wi se - 3 00 00 M T o r 15 % o f t he

m a r ke t - w id e O p en p o s it i o n, w h i c he v er i s h i g h er

DELI VERY

Deliver y Unit 10 MT with tolerance limit of 500kgs

Deliver y Margin 25%

Deliver y Center(s) Exchange Approved warehouse a t Delhi ( upto the ra dius of

5 0 k m s f r om m un i c ip a l l i m it s )

A ddi ti onal De liver y Ce nte r ( s) E xc han ge a ppr oved w arh ou se a t K han na , Kar na l, K ot a,

Ka n pu r, In dore Ha rdoi, Ba reilly, Gon da , Bena res, Ma thu ra (

u p to t h e r a di us o f 5 0 k m s f ro m mu ni c ip a l l i mi t s)

Q u al i t y s p e ci f i c at i o n/ D e l iv e ra b l e g r a de s W h e a t o f S t a nd a rd M i l l v a r i et y c o n f i r mi n g t o t h e f o l l ow i n g qu a lity sta n da rds will be delivera ble. T he ma teria l will be

tested u sin g a 3 mm sieve a n d n o live in festa tion is permitted.

DEFECTS

DEFECTS:

( 1) F or ei gn M at te r ( Or ga ni c/ In or ga ni c) 3 .0 % ( Ma x)

( 2 ) D a ma g ed K er ne l s 4 . 00 % ( M ax )

( 3) S hr un ke n, S hr iv el ed & B ro ke n G ra in s 6 .0 0% ( Ma x)

(4) Infestation Dama ged Kernel 1% (Max)

Total defects (1 + 2 + 3 + 4)

Acceptable upto

Rejected i f Total defects i s Above 13 %Test weight

Up to 76 k g/hl Acceptable with rebate of 150 grams per kg/hl or pro-rata

v ar ia nc e i n h ec to r l it er w ei gh t d ed uc te d p er q ui nt al we ig ht

delivered

Rejected

M oi st ur e ( de te rm in ed b y A ir o ve r M et ho d )

Accepta ble

Rejectable Above 13 %

( o th e r t h an i n fe s ta t io n d a ma ge d )

9 % b as is

13%

76 k g / h l Ba s i s

B e lo w 74 k g /h l

1 1% B as i s

U p t o 1 3 % W i t h r e b at e a t 1: 1

MCX is No. 1 in

silver, and No. 3

i n g ol d, co ppe r,

z in c, c r u de o il ,

and natural gas,

globally( ba s ed on l ot s t ra de d a s o n

N o v e mb e r 2 9 , 2 0 0 8 )