Business Standard

Agriculture futures dip on govt intervention

Image

Dilip Kumar Jha Mumbai

Agri commodities futures declined up to two per cent on leading exchanges due to the government’s proposed ban on essential commodities’ exports, coupled with the ongoing raids against stockholding.

The recently launched sugar futures for near-month delivery on the NCDEX plunged to Rs 2,759 per quintal today as against Rs 2,811 per quintal on the previous day. Rape/mustard seed on the NMCE lost Rs 6.90 to close at Rs 472.10 per 20 kg.

Similarly, rubber futures for January series lost Rs 2 to close today at Rs 21,800 per quintal. The February and March series also lost Rs 43 and Rs 20 to close at Rs 22,590 per quintal and Rs 23,160 per quintal, respectively.

 

According to Naveen Mathur, associate director (commodities and currencies) of Angel Broking, “There is a bit of uncertainty in agri commodities. The government is mulling ban on exports of essential agri commodities. Hence, traders are pulling down their exposure in the futures market to avoid loss in future.”
 

PRICES MOVEMENT
 11-Jan12-Jan
Mentha oil (kg)1183.101161.50
Crude palm oil (10 kg)533.40548.60
Potato (qtl)655.20646.80
Mustard seed (10 kg)552.05548.15
Refined soya oil631.20629.80
Turmeric14450.0014320.00
Jeera (qtl)14234.0014122.00
Pepper (qtl)22422.0022420.00
Castor seed (qtl)4456.004454.00
Chilli (qtl)8216.008150.00
Gur (40 kgs)940.00928.00
Soybean (qtl)2337.502329.00
Sugar M (qtl)2811.002759.00

On MCX, barley for near-month delivery lost 0.79 per cent to trade at Rs 1125 per quintal, while crude palm oil futures January settlement fell 0.87 per cent to Rs 548.60 per 10 kg.

On the NCDEX, mentha oil slumped to Rs 1,161.50 per kg on Wednesday from Rs 1,183.10 per kg the previous day. Chilli and gur fell to Rs 8,150 per quintal and Rs 928 per 40 kg from their respective levels of Rs 8,216 per quintal and Rs 940 per 40 kg, respectively.

Copra futures for delivery in January lost Rs 69 to close today at Rs 6,300 per quintal on the NMCE. The February series lost Rs 7 to Rs 6,427 per quintal, while March series lost Rs 3 to close at Rs 6,492 per quintal.

Further, pepper for the January series lost Rs 2 to Rs 22,420 per quintal. Turmeric and other commodities also lost marginally on derivatives platform.

“The ongoing raids on spot traders in various mandis against stock holding has created panic. The futures market is just facing the repercussion of the spot market,” said an official who monitors the surveillance system of an agri commodities trading company.

Traders, however, anticipate quick action against hoarders of agri commodities, which has already started with raids by income tax, sales tax department and APMC officials in various Agricultural Produce Market Committee (APMC) mandis.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jan 13 2011 | 12:19 AM IST

Explore News