Mixed trend rules commodity futures

The agri commodities futures market showed a mixed trend today. The festive season and the arrival of crops may see the markets on the upper side, according to commodity experts.

While the spices segment, including cumin seed (jeera) and chilli, closed firm, chilli's firmness could be short term as the arrivals are seen on the higher side.

The big demand for jeera could sustain the market at the current levels as the new crop is expected only next year, say trading sources.

On the National Commodity and Derivatives Exchange (Ncdex), the November contracts of chilli and jeera closed on Tuesday at Rs 4,193, up Rs 12 a quintal, and Rs 10,689, up Rs 234 a quintal, respectively.

Barley kept its upward momentum and closed the day at Rs 1,211 against the previous close of Rs 1,209. The higher demand and the very low availability of the crop during this time of the year is stoking the bullish sentiment in the market.

Guarseed, which last week showed some weak sentiments, zoomed today to close at Rs 1,728 against the weekend close of Rs 1,676 a quintal.

According to commodity analysts, stockists are entering the market as market estimates are yet uncertain on the probable output of guarseed this season, with figures hovering between 70 and 80 lakh bags.

Mentha dipped to Rs 494 a kg from yesterday's Rs 505 mainly on account of low demand and the bumper crop this year. Turmeric too closed in the red at Rs 2,029 against Rs 2,039. Similarly, pepper dipped by around Rs 50 to close at Rs 14,092 a quintal.

The sugar futures for November delivery managed to remain firm and closed the trading session at Rs 1,279. Last week it had closed at Rs 1,271.

Sops announced by the government last week, said analysts, coupled with the current festive demand would help sugar in the next two months.

Maize strengthened today as the industry (starch makers) has entered the market for procurement. Though arrivals have started, the quality as well as the quantity of the commodity are not up to the mark. The arrival momentum is expected to pick up by mid-November as the crop output is on the higher side this year.