Securities and Exchange commission of Pakistan has allowed Pakistan Mercantile Exchange Ltd (PMEX) to introduce futures contract on wheat. The futures contract yet to be finalized considering the harvest seasons and deliver-ability at the prescribed warehouses.
The PMEX is already serving the trading, investing, corporate and commercial users with agri products such as palm olein, rice, and sugar in addition to the metals such as gold and silver. the PMEX contracts include both deliverable futures and cash-settled futures.
The wheat future will be structured as deliverable and it will offer hedging opportunity to farmers, millers, manufacturers and processors, wholesalers, retailers, and even corporate and consumers.
the futures markets in agricultural commodities were helpful in managing production, distribution and consumptions of these products. these markets provide price discovery mechanism which help in policy making decisions.
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