Agri futures hit upper circuit
Sugar, chilli, and urad hit the upper circuits Monday even as active trading was witnessed in chana and the soya complex.
By TNN |
MUMBAI: Sugar, chilli, and urad hit the upper circuits Monday even as active trading was witnessed in chana and the soya complex.
Sugar and urad November, due to expire Monday, went up on the back of delivery concerns whereby the longs kept their positions open, cornering the shorts, who will now have to pay a penalty.
In urad, according to CP Krishnan, head of commodities at Geojit Commodities, another factor for the rise was spot demand in the mandi of Ahmedabad, which saw prices being quoted around Rs 200 per quintal higher than late last week.
Last month’s showers in Maharashtra, north-east Karnataka and parts of AP and MP meant there was a problem delivering the specified specification laid down in the NCDEX contract. The November urad contract closed up 4.9% at Rs 3,712 per quintal, while the December contract, which is now the near month, ended up 2% at Rs 3,488.
Sugar rose on news in agencies that the FM was considering a review of the ban on sugar exports combined with short covering, said Kishore Narne of Anand Rathi Commodities. At expiry, the November sugar contract was 5% up at Rs 1,950, while the near month contract was up half a per cent at Rs 1,779.
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Chilli for November also hit the upper circuit of 6%, with prices closing at Rs 5,687 largely due to short-covering. Another factor, apart from this year’s crop expected to be 20% lower than last year, lending buoyancy to the commodity was the fact that traders have evinced confidence after the awareness campaigns conducted by NCDEX on the chilli stocks in the exchange warehouses, said Krishnan. The current rabi crop of chana is expected to be in the range of 55 lakh tonnes, though demand until February is expected to be tight.
“We are bullish on the December and January contracts and expect a good ‘06-07 rabi crop, the only caveat being the temperature — which should not get too cold or too warm during the sowing period up to mid-January for a particular duration of time,” said Ashwini Bansod of Man Financial Commodities. The near month (December) contract was up over a per cent at Rs 2,828 per quintal.
NCDEX soyabean closed higher tracking the resilient CBOT soyabean. In the electronic trading during the Asian hours, CBOT soyabean January contract soared more than 10 cents. This coupled with weak arrivals of beans in the MP markets resulted in a rally on the NCDEX platform, said Kotak Commodities Research.
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The NCDEX agri index of 19 commodities ended a tad up at 1,693.9 points, while volumes up to 5 pm were Rs 3,586 crore.Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
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