Maize Feed Industrial Grade

MAIZE FEED INDUSTRIAL GRADE

Overview

Maize (Zea mays) belongs to the grains family Graminae and is known as Queen of Cereals due to its diverse uses. Also called corn, maize requires moderate climate for growth, excess or deficient rains adversely affect yields as well quality. It grows well in loamy soils. Maize in India is grown in both Kharif (80%) and rabi (20%) seasons. In Kharif, it is sown in June-July till mid-August and harvested from mid-September.

The arrivals extend from late September to February. The major states are Karnataka, Andhra Pradesh, Maharashtra, Madhya Pradesh and Uttar Pradesh. In rabi, maize is grown in Bihar and coastal region of Andhra Pradesh. The arrivals start from late March and extend upto June.

Key Contract Parameters in Options in Goods in Maize – Feed/Industrial Grade

Introduction

  • Similar Contract Specifications as Futures Contracts which include launch calendar, expiry, delivery centers etc.

  • Expiry date same as corresponding Futures Contract

  • Netting of Options and Futures positions

  • Compulsory delivery on Expiry of Options contract – Physical settlement of Goods.

Position Limits 

Position limits for ‘option in goods’ shall be clubbed with position limits of ‘options on commodity futures’ on the same underlying goods but shall remain separate from position limits of futures contracts on the same underlying.
Numerical value for client level/member level limits in Options shall be twice of corresponding numbers applicable for Futures contracts.
Maize – Feed/Industrial Grade: 56,00,000 MT and 5,60,000 MT for member and client respectively.
For near month contracts:
The following limits would be applicable from 1st of every month in which the contract is due to expire. If 1st happens to be a non-trading day, the near month limits would start from the next trading day.
Member-wise: 7,00,000 MT or One-eighth of the member’s overall position limit in that commodity, whichever is higher. Client-wise: 70,000 MT.

Buy option