Commodity Online
MUMBAI: With resumption of wheat Futures trading on the Indian commodity exchanges the FMCG stocks on the bourses witnessed a fall in the stock prices.

After the clearance from the Forward Market Commission (FMC), Indian commexes have started the futures trading of wheat, which had faced a ban from the union government since past two years.

The leading commodity exchange in the country, National Commodities and Derivatives Exchange (NCDEX), Multi-Commodity Exchange (MCX) and National Multi-Commodity Exchange (NMCE) have got a formal nod from the commodities market regulator for the Futures trading in wheat. The exchanges have already started futures trading in wheat from Thursday.

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ITC was down by over 4.5% at Rs.182.40, Britannia Industries Ltd too shed by close to 4% to Rs.1704 during past two trading sessions on the BSE. Similarly, Marico Industries Ltd shed by over 3% at Rs.65.20 during past two days. The investors seem to have lost faith in the food giants fearing a spurt in prices of the commodity prices squeezing the companies’ profitability.

The FMC had lifted the two-year ban on futures trading in wheat on Saturday soon after the code-of-conduct imposed for the general elections expired. The NCDEX and MCX would launch six contracts expiring between June and November 2009.

Exchange officials mentioned that the contract would be available for trading from Thursday and there were no major changes in the contract specification.

With the opening of the futures contract on MCX, wheat prices jumped by Rs.49 to Rs.1149 per quintal for benchmark June contract. The two exchanges had recorded a turnover of Rs.200 - 400 crore in wheat futures before the ban was imposed.

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