Traders go long to make the best, influence prices

MUMBAI: Traders are increasingly taking long positions in agri commodities that are expected to see a low output due to less rainfall. Market analysts believe the price rise is mainly driven by deficient monsoon and low sowing in most commodities. "Low rainfall will impact the crop output that is well understood by the traders who are taking short positions in narrow commodities and selling long," says C P Krishnan, wholetime director, Geojit Commotrade.

The market was surprised to see an unexpected jump of more than 18% jump in turmeric prices in last one month and 70% in last two months. Last two trading sessions have been too volatile for turmeric prices that saw an upper circuit of 4%on Wednesday and came down with same number on Thursday.