Volumes may remain thin in futures market
Volumes in futures trading remained subdued on account of culmination of the week-long Jain festival of Paryushan, a period of fasting and austerity.
By TNN |
MUMBAI: Volumes in futures trading remained subdued on account of culmination of the week-long Jain festival of Paryushan, a period of fasting and austerity. Precious metals and energy witnessed thin trading.
According to analysts, trading is expected to be weak till the second week of September, when activity picks up at the end of the US summer vacation.
Tracking Comex gold, MCX gold for October delivery closed at Rs 9,536 per 10 gm from Rs 9,550 on Saturday in the session that closes at 5 pm.
Silver too closed at Rs 19,170 from Rs 19,141 the previous day. Energy witnessed a sharp fall in the international market as weather concerns eased. On MCX, crude for September closed at Rs 3,333 per barrel from Rs 3,399. Natural gas for September declined to Rs 319 from Rs 347 per mmbtu.
Among agri commodities, pepper, maize, jeera and wheat witnessed action on the National Commodity & Derivatives Exchange (NCDEX). Pepper and jeera contracts for the near month (September) moved up while wheat and maize ended lower. Pepper was up around 2.6% at Rs 11,560/quintal from Saturday, trading between a wide range of Rs 11,590 and Rs 11,200 per quintal.
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Brazil, which is a main exporter, has raised the benchmark price of pepper by $150 and in the spot market exporters are purchasing ungarbled pepper at no less than Rs 100 per kg. Jeera, which shares a positive co-relation with pepper, was up around 1.6% at Rs 8,295 per quintal. On the supply side, floods in Unjha (Gujarat) and the West Asian crisis have made jeera hot property. Basically, heavy rains in Unjha have affected the quality of the crop and problems in export from Syria have added to the woes.
At Rs 735.5 per quintal, the near-month maize contract tumbled around 6% to hit the lower circuit while wheat for September closed 4% lower (Rs 954 per quintal) from Saturday’s close. The main reason for maize plunging is FCI’s release of stock in Andhra Pradesh, according to a Mumbai-based broker.
Wheat for September delivery was down over 4% from Rs 954 per quintal on Saturday. According to Kotak Commodity Services, in the short run, there will be some price impact, mostly down.
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