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| Futures Contract Specifications for Wheat.
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| Type of Contract |
Futures Contract Specifications |
| Name of Commodity |
Wheat |
| Ticker symbol |
WHTSMQDELI |
| Trading System |
NCDEX Trading System |
| Basis |
Ex- Warehouse Delhi inclusive of all taxes |
| Unit of trading |
10 MT |
| Delivery unit |
10 MT |
| Quotation/base value |
Rs/Quintal |
| Tick size |
20 Paisa (Re. 0.20) |
| Quality specification
|
| 1. |
Damaged Kernel (Other than infestation damaged) |
2% max. |
| 2. |
Infestation damaged Kernel |
1% basis |
| 3. |
Foreign Matter
(Organic/Inorganic) |
1% max (minerals not more than 0.25% and animal origins not more than 0.1%) |
| 4. |
Other edible grains |
2% max |
| 5. |
Shrunken / Shriveled / Broken grains |
5% basis |
| 6. |
Total defects sum of :
• Damaged Kernel (Other than infestation damaged)
• Infestation damaged Kernel
• Shrunken/Shriveled/Broken grains |
7% basis |
| 7. |
Moisture |
11% basis. |
| 8. |
Test Weight |
76 Kg/hl basis |
|
| Quantity variation |
+/- 5 % |
| Delivery center |
Delhi |
| Additional delivery centres |
Ahmedabad, Bareilly, Indore, Itarsi, Kanpur, Karnal, Khanna, Kota, Moga, Rajkot, Shahjahanpur and Sirsa (Within 50 km radius from the municipal limits) with all centers at par |
| Hours of trading |
As per directions
of the Forward Markets Commission from time to time, currently-
Mondays through Fridays : 10:00 AM to 05:00 PM
Saturdays : 10.00 AM to 2.00 PM
The Exchange may vary the above timing with due notice |
| Due date/Expiry date |
20th day of the delivery
month
If 20th happens to be a holiday, a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange, (other than a Saturday) |
| Opening of Contracts |
Trading in far month contract will open on the 10th day of the month in which the near month contract is due to expire. If the 10th day happens to be a non-trading day, contracts would open on the next trading day. |
| Delivery specification
|
Upon expiry of the contract all outstanding positions will result in delivery.
The penalty structure for failure to meet delivery obligations will be as per circular no. NCDEX/TRADING-086/2008/216 dated September 16, 2008. |
| Closing of contract |
Upon the expiry of contract all the outstanding open position would result in compulsory delivery. |
| No. of active contracts |
As per Launch Calendar |
| Price band |
Daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed daily price limit there will be cooling off period for 15 minutes. Trade will be allowed during this cooling off period within the price band. Thereafter the price band would be raised by another (+/- ) 1% and trade will be resumed. If the price hits the revised price band (4%) again during the day, trade will only be allowed within the revised price band. No trade/order shall be permitted during the day beyond the revised limit of (+ / -) 4% |
| Position limits |
Member-wise :-
40,000 MT or 15% of market wide open position whichever is higher
Client-wise :- 8,000 MT
The above limits will not apply to bona fide hedgers. For bona fide hedgers, the Exchange will, on a case to case basis, decide the hedge limits. Please refer to Circular No. NCDEX/TRADING-100/2005/219 dated October 20, 2005
For near month contracts
The following limits would be applicable from one month prior to expiry date of a contract :-
Member-wise :- 15,000 MT or 15% of market wide near month open position, whichever is higher
Client-wise :- 3,000 MT |
| Special Margins |
Special margin of 3% of the value of the contract will be levied whenever the rise or fall in price exceeds 20% of the 90-day prior settlement price. The margin will be payable by the buyer or the seller depending on whether price rises or falls respectively. The margin shall remain in force so long as the price stays beyond the 20% limit and will be withdrawn as soon as the price is within the 20% band. |
| Premium / Discount |
Quality variance is acceptable in specifications for Infestation damaged kernel, Shrunken/Shriveled/ Broken Grains Total Defects, Moisture and Test Weight only with discounts as follows :-
Infestation
damaged Kernel :
• Infestation damaged kernel above 1% to 3% - accepted with
rebate on 1:0.25 basis
• Infestation damaged more than 3% - Rejected
Shrunken/Shriveled/Broken Grains :
• Shrunken/Shriveled/Broken Grains above 5% to 6% - accepted
with rebate on 1:1 basis.
• Shrunken/Shriveled/Broken Grains more than 6%- Rejected
Total defects
• Total defects above 7% to 9% - accepted with rebate on 1:1
basis
• Total defects above 9% - rejected
Moisture
• Moisture above 11% to 13% - accepted with rebate on 1:1 basis
• Moisture above 13% - rejected
Test
weight
• Test weight below 76 kg/hl - acceptable up to 74 kg/hl-accepted
with rebate of 150 grams per kg/hl or pro-rata variance in hectoliter
weight deducted per quintal weight delivered
• Test weight below 74kg/hl - rejected |
| Delivery Logic |
Compulsory Delivery |
|
Tolerance Limit for outbound deliveries:
| Quality Parameter |
Basis |
Acceptable quality
range as per contract specification |
Proposed permissible
Tolerance |
| Damaged Kernel (Other than infestation damaged) |
2% max |
|
+/- 0.25% |
| Infestation damaged Kernel |
1% basis |
1% to 3% - accepted with rebate on 1:0.25 basis |
+/- 0.50% |
| Foreign Matter (Organic/Inorganic) |
1% max (minerals not more than 0.25% and animal origins not more than 0.1%) |
|
|
| Other edible grains |
2% max |
|
+/- 0.25% |
| Shrunken / Shriveled / Broken
grains |
5% basis |
5% to 6% - accepted with rebate
on 1:1 basis |
+/-0.5% |
Total defects :-
• Damaged Kernel (Other than infestation damaged)
• Infestation damaged Kernel
•Shrnken/ Shriveled/ Broken grains
|
7% basis |
7% to 9% - accepted with Rebate on 1:1 basis |
+/- 1% |
| Moisture |
11% basis |
11% to 13% - accepted with Rebate on 1:1 basis |
|
| Test Weight |
76Kg/Hl basis |
76 kg/hl - acceptable up to 74 kg/hl-accepted with rebate of 150 grams per kg/hl or pro-rata variance in hectoliter weight deducted per quintal weight delivered
|
+/- 0.25 Kg/Hl |
| Max Tolerance (for all characteristic) |
1.25% |
|
Contract Launch Calendar :-
| Contract Launch Month |
Contract Expiry Month |
| September 2009 |
January 2010, Feburary2010,March
2010 |
| October 2009 |
April 2010 |
| November 2009 |
May 2010 |
| December 2009 |
June 2010 |
| January 2010 |
July 2010 |
| February 2010 |
August 2010 |
| March 2010 |
September 2010 |
| April 2010 |
October 2010 |
| May 2010 |
November 2010 |
| June 2010 |
December 2010 |
|
Contract Launch Calendar of Wheat :-
| Contract Launch Month |
Contract Expiry Month |
|
August 2010 |
January 2011, February 2011 |
|
September 2010 |
March 2011 |
|
October 2010 |
April 2011 |
|
November 2010 |
May 2011 |
|
December 2010 |
June 2011 |
|
January 2011 |
July 2011 |
|
February 2011 |
August 2011 |
|
March 2011 |
September 2011 |
|
April 2011 |
October 2011 |
|
May 2011 |
November 2011 |
|
June 2011 |
December 2011 |
|
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Members and market participants who enter into buy and sell transactions may
please note that they need to be aware of all the factors that go into the
mechanism of trading and clearing, as well as all provisions of the Exchange's
Bye Laws, Rules, Regulations, Product Notes, circulars, directives,
notifications of the Exchange as well as of the Regulators, Governments and
other authorities.
Members and market participants trading on the Exchange in the
commodity contracts shall be deemed to be aware of applicable laws and
amendments thereof from time to time, including provisions and rates relating
to the sales tax, value added tax APMC Tax, Mandi Tax, octroi, excise duty,
stamp duty, etc., applicable on the underlying commodity of any contract
offered for trading.
The Exchange shall not be responsible or liable on account of non
compliance by any of the members and market participants of any such applicable
laws or any amendments thereof including not being aware of rates of taxes,
levies, etc., on the underlying commodity of any contract offered for trading.
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