MSL Leg 2 | Commodities | Round 1

RULES

·       Total Contract Budget available - Rs.1,00,000.
·       If you expect market price to rise above the future price, buy the future.
·       If you expect market price to remain below the future price, sell the future.
·       In case you buy the future, Payoff = Contract Amount*(Settlement Price/Future Price)
·       In case you sell the future, Payoff = Contract Amount*(Future Price/Settlement Price)
·       Positions will be squared off after the end of this round. Round 2 will start afresh with a fresh budget.
·       It is necessary trade in each commodity. And contract size in any commodity cannot exceed Rs.40,000.

 PRICES

1. Cardomom:  Spot Price - 100, Future Price - 115
2. Sugar:  Spot Price - 300, Future Price - 325
3. Mentha Oil: Spot Price - 200, Future Price - 220
4. Guar seeds:  Spot Price - 250, Future Price - 260
5. Jute:  Spot Price - 400, Future Price - 430
6. Wheat:  Spot Price - 150, Future Price - 160

 

NEWS

 

·       A report by food commission of India says that the availability of gaur seed crop and water is going down for sowing of gaur seed for the coming marketing year. Higher prices of guar seed in the month of April to May urge farmers to plant more guar seed in the next marketing year.

·       Karnataka Cardamom growers wilt under twin attacks – The farmers of Hasan district are struggling as first, their cardamom crop was hit by viral diseases (Katte & Kokke Kundu) and next came the jumbo menace, as elephants & other wild animal plundered their lands. This leads to around 80-90% fall in the yields of the farmers.

·       Mentha oil production to decline - The production of Mentha oil to decline by 20% due to lower planting of the aromatic herb. A huge capacity built of synthetic mint, a substitute of mentha oil also discouraged farmers to bring less area under mentha plants.

·       Sugar is expected to be subsidized in many regions, including the EU, through production and high tariffs on imports. Any shift in policy could topple this disparate plan.

·       The Central government is making packaging of sugar and food grain compulsory in jute bags. The Centre has recently made the order under the Compulsory Jute Packaging Act of 1987.If prices of raw jute do not remain within limits, the cost of production of bags would shoot up, adversely affecting the operations of the food ministry, FCI .

·       The Indian government has sidestepped its own parliament to rush into law the world’s largest food subsidy scheme - cheap rice, wheat and millet for 800 million people – but the government’s haste has reignited rumours India might be headed for early elections.

 

Send in your responses latest by 11:59 PM today at the following link: http://goo.gl/mY1nBH