The Hindu Business Line : Guarseed, pepper, chilli post gains

Commodity markets ended Friday on a positive note with guarseed, pepper, chilli and wheat surging ahead. Despite it being the peak season for guarseed arrivals in the market, the prices of the near month contract on NCDEX moved up by 1.45 per cent as traders and farmers are stacking the produce in anticipation of a better price.

"The tight supply of guarseed is artificially pushing up demand. The market received about 70,000 bags of guar seed last year same month and now, we are getting only 40,000-50,000 bags, " said Mr Harish Galipalli of Karvy Commodities.

Good demand for chilli from China has been pushing up prices for the last few days on the Indian markets. China has been scouting for chilli in other countries to make up for the loss in its production following a poor crop. Demand from Bangladesh and Sri Lanka also aided the bullish sentiment. Spot prices shot up by Rs 150 to Rs 7,200 a quintal.

Wheat gains

Wheat gained significantly in the last few sessions. Millers were seen active buyers on the futures market. The rise in sowing acreage failed to cool down prices as the traders felt nothing was being done to increase wheat supplies in the short term.

Moreover, the fresh rabi arrivals are expected by February-March. Imports are likely to be delayed by at least a month due to rise in world prices. Australia has lost over 60 per cent of its produce due to bad weather.

Pepper gained 1.6 per cent as production this year has fallen short by 20-25 per cent over last year. Chana continued its upward march by gaining 0.49 per cent.

Maize slips

Maize slipped on profit booking after prices rallied over the last four days. Despite US markets taking a day off for Thanksgiving, metals posted good gains. Gold gained on the back of dollar losing ground against euro. Silver, zinc and copper gain significantly.