The Hindu Business Line : Potato futures up on crop damage fears

Rumours of production loss due to blight and unseasonal rainfall saw the potato futures market rise rapidly on Monday. On MCX, both Agra and Tarkeswar varieties witnessed a strong upward trend.

While March contract of Agra variety closed at Rs 572 nearly six per cent higher that the previous day's closing at Rs 539.6 per quintal, futures on Tarkeswar potato hit the upper circuit at Rs 464.6. Tarkeswar potato closed at Rs 430 on Saturday.

Prices moved up by nearly Rs 100 per quintal on both varieties during the last three weeks.

While trading circle is bullish on further upward movement in potato in the near future, sources in major commodity broking houses told Business Line that crop estimate available till date does not confirm any major impact on availability.

According to sources, final production of Agra variety is expected to be marginally higher than last year irrespective of loss in production due to blight and rain.

Crop outlook

Crop outlook is reasonably good in West Bengal even after the rainfall. According to sources, the net production is expected to be in the range of 80 lakh tonne, up by 10 per cent compared to 70-72 lakh tonne production last season.

The crop is higher despite six to seven per cent loss in production in North Bengal and four per cent loss in major potato growing districts of Burdwan and Hoogly in South Bengal.

Overall sources, believe potato is cheaper compared to the same period last year.

Meanwhile, MCX has nearly doubled the margins to 20 per cent on the buy side as a risk management initiative in potato futures. "Traders felt rains in growing areas may hit production and hamper the quality of the produce. Cold storages were also seen stocking up," said a dealer in Mumbai.

Chilli gains

Despite chilli losing Rs 200 per quintal to Rs 3,750 in Guntur markets, futures on NCDEX gained 2.71 per cent to Rs 3,898 on short covering. Concerns over rains in Rajasthan and Gujarat marked up jeera futures by 1.58 per cent to Rs 9,777 per quintal. Short covering of positions in chana and sugar futures on NCDEX were up 0.95 per cent and 0.75 per cent to Rs 2,116 per quintal and Rs 1,487 per quintal, respectively.

Cardamom gave in 2.61 per cent to Rs 462 per kg ahead of contract expiry.

Turmeric low

Turmeric futures were quoting low 1.62 per cent at Rs 2,004 per quintal on poor demand. Refined soya oil skidded 0.67 per cent to Rs 445 per 10 kg.

NCDEX registered a turnover of Rs 2,570 crore (Rs 1,955 crore, up to 2 p.m.) up to 5 pm, while on MCX it was Rs 2,833 crore (Rs 725 crore, up to 2 p.m.) on 59,750 (20,825) trades. Active trades were seen in chana, pepper, guarseeds, refined soya oil, jeera and gold.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
HDFC Bank ties up with Godrej Aadhaar

Procurement agencies told to buy adequate wheat

Fresh pulse to sustain winter rains in North

Action close-up

Blooming exports

Potato futures up on crop damage fears

Signs of revival in arecanut market

Spot rubber under pressure

Meet to discuss alternative use of tea garden lands

Low volume continues at Coimbatore tea sale

No activity

Hindalco shares crash 13.74%

Visakha Dairy hikes milk price again

Sharp fall in pepper futures

Hindalco deal may not impact aluminium prices

Launch of spot exchanges runs into rough weather