Announcing the latest coordinates of Saffron futures on commodity exchanges
Alireza Naserpour, Deputy Director of Market Development and Economic Studies of Iran’s stock exchange on the guarantee and the maturity of future contracts said that the maturity of future contracts for saffron was 45 days maximum last year, but now the maturity of the contracts has reached 3 months and since the beginning of the year Future, longer term outcomes will be launched. Given the increased risk of trading in the fluctuating market conditions, short-term maturity has been defined that the stability of the market is also likely to increase the maturity of future contracts for saffron, and there is no problem with this.
He added: “In line with market risk management and risk management of brokers, the amount of the guarantee is determined by the experience of the previous fluctuations of contracts, and in fact, the guarantee will cover the risk of contracts in the fluctuations of the market.
The deputy director of Iran’s stock market development continued: although the increase in the amount of the guarantee will affect the market liquidity and reduce the volume of transactions, it should also consider the risk of trading. This is a kind of trade_off and there must be a balance between market risk and guarantee. If tomorrow’s saffron market is to stabilize, a new decision can be made to reduce the contract security. As a matter of fact, the cost of guaranteeing futures contracts has dropped somewhat.
The director of the development of the market for commodity trading in Iran, regarding the ambiguities that some exporters have regarding the quality of certified saffron, stated: In traditional and customary trades, each person may have a certain definition of a name, and this definition can not be the basis for acceptance Saffron is in stock.
He added that if goods are to be traded on a stock exchange, then the goods must be presented on the basis of figures and figures. In order to accept saffron in stock exchanges, a standard has been defined that conforms to the national standard of the country, and the certificate of saffron is certified, disclosed in the contracts. Saffron will be delivered to the buyer in accordance with this standard and, incidentally, these standards will be acceptable to both large exporters and exporters and it is expected that these standards will gradually replace the customary specifications of trades.
Nasserpour said: “When considering saffron deals, let’s keep in mind that this product is a product of its own characteristics, and its market participants are a special group, and it can not be linked to the currency market or gold. Of course, exchange rate fluctuations are also considered as one of the factors affecting the price of saffron, but the price of saffron depends on other factors including production cycles, harvest season, export trends and target markets. Therefore, saffron market players should not compare this product with any other product and have irrational expectations.
The official said: “This year, the volume of saffron production and harvest in the country was around 300 to 350 tons,” the official said. The volume of saffron traded in the cash market of Saffron Stock Exchange this year was about 100 tons, which is a very pleasant thing. The volume of futures trading of saffron has also exceeded the volume of saffron production.
He added: “In addition, we have plans to develop new warehouses with more capacity in Khorasan province. We already had a warehouse to accept saffron, which fortunately at the moment the number of warehouses has reached 2 warehouses and it is expected that in early 1998, the number of stock exchanges of stock exchanges will reach at least 4 warehouses. The development of storage systems will also help to provide farmers with benefits and boost market trading. Also, launching new trading options and diversifying tools in the saffron market will attract investors with a different risk profile.
Nasserpour said: “Next year, futures deals on saffron-based commodity funds are underway and we hope that this will be operational with the permission of the Securities and Exchange Organization.” Restarting future coin deals depends on the provision of certain conditions and there is no plan to restart future coin deals.
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