The Hindu Business Line : Ban effect: Futures fall across commodities

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Mumbai Jan. 24 A day after the Government jolt by way of banning futures trading in two pulses (tur and urad) the market saw a decline in futures prices across commodities.

Presence of bearish fundamentals in the market also led to the decline in prices of wheat and edible oil, observers said.

Refined soya oil declined by about 6 per cent at Rs 455.7 per 10 kg on one of the exchanges.

The main reason for the decline was international cues, further led by yesterday's ban on pulses, said a STCI analyst.

Expectation of mustard crop arrival early next month too kept the edible oil market under pressure, said the analyst.

The farm-gate price of mustard will have a bearing on the price of mustard oil, he said.

Many traders seem to have squared up their positions in agri-commodities in order to make margin provision on tur and urad, said the STCI analyst. This may have also been one of the reasons for a decline in prices on the futures exchange.

Edible oils are in the basket of essential commodities and carry a weigthage of 2.8 in the Wholesale Price Index, lower than pulses.

Wheat prices on the futures exchange declined by around 1 per cent and were traded at Rs 1,029 per quintal for the near month contract.

Volumes of wheat were 17,460 contracts, lower than the average 25,000 to 30,000 contracts per day witnessed in recent times.

There was news of release of wheat for distribution under the Government's welfare programmes, said an analyst.

Chana prices declined by 1.2 per cent, trading between Rs 2,261 and Rs 2,345 per quintal, on the futures exchange.

Spot prices of Chana ruled firm at Rs 2,600 ex-Delhi.

More Stories on : Pulses | Agricultural Policy | Commodity Exchanges

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