Taking a shocking decision, SEBI has banned gram futures. Shockingly because at present there is no reason to put a hold on the futures of gram. There is neither major volatility due to speculation nor is there any concern about supply or prices. In such a situation, what is the reason for this decision of SEBI. Why is the last gram futures banned?
ban on gram futures
SEBI has banned the launch of new contracts of Chana. SEBI has put a moratorium on new positions in the existing contract. Only squaring up is allowed in the existing contract and this order of SEBI has been implemented with immediate effect.
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Why ban on Chana futures?
In fact, the reason behind the ban on gram futures by SEBI is shocking because there is neither a big boom nor a recession in the gram. Chana has seen a rise of only 14 per cent this year. Many commodities have gained much more than gram. If we look at the price of soybean this year, then its prices have doubled, while this year guar has seen an increase of 36% and cotton by 29%. The supply is adequate as per government estimates. This year there has been a record production of gram. According to government figures, 119 million tonnes have been produced this year. Chana prices are still below MSP. The prices of other pulses are also under control.
If we look at the production of gram, the production of gram was 93.8 lakh tonnes in 2016-17 while 113.8 lakh tonnes in 2017-18, 99.4 lakh tonnes in 2018-19, 110.8 lakh tonnes in 2019-20 and gram in 2020-21. The production has been 119.9 lakh tonnes.
On the other hand, if we talk about the return of gram on NCDEX, gram has given 4 percent in 1 week, 5 percent in 1 month and 17 percent in 1 year.
Investment advice by Anuj Gupta of IIFL Securities
BUY MCX GOLD OCT @ 47100 SL 46900 TARGET 47500
BUY MCX SILVER SEPT AT 63300 SL 62800 TARGET 64200
SELL MCX COPPER AUG AT 729 SL 733 TARGET 722
SELL MCX CRUDE AUG AT 5020 SL 5080 TARGET 4900
SELL NCDEX SOYABEAN SEPT AT 7700 SL 7950 TARGET 7300
SELL MCX COTTON AUG AT 26700 SL 25200 TARGET 25800
BUY NCDEX JEERA SEPT AT 14100 SL 13800 TARGET 14600
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