The Hindu Business Line : Commodities recover on FMC chief pep talk

Mumbai, Jan. 22 Futures trading in agriculture commodities on NCDEX followed the stock market downhill, but recovered at the later session. Pep talk by the FMC Chairman, Mr B.C. Khatua, and the Government decision to consider autonomy to FMC also boosted sentiments.

Soyabean, barley and jeera futures hit the lower circuit, while maize was close to the lower circuit.

Soyabean hit the lower circuit of 6 per cent, but recovered marginally to close with a loss of 3 per cent at Rs 1,960 per quintal, while soya oil futures, which was down 2 per cent, trimmed loses to close lower by 0.87 per cent at Rs 581 per 10 kg.

“It was bearish day for agriculture commodities. Hedge funds in the international markets have withdrawn from commodities to cover up their position in equities,” said an analyst.

Jeera slips

Jeera for February delivery fell 1.59 per cent to Rs 10,615 per quintal on weak demand. Barley for May delivery lost 1.82 per cent to Rs 992 per quintal on profit booking.

Among gainer, chana futures was up 1.27 per cent to Rs 2,319 after the Mr Khatua said that FMC will urge the government to lift the ban on urad, tur and wheat.

After gaining by Rs 250 in the last 3-4 session, turmeric gained 2.96 per cent to Rs 2,820 per quintal on buying interest at lower levels. Fresh buying was also witnessed in maize which rose 1.24 per cent to Rs 785 per quintal. Potato was up 1.39 per cent to Rs 588 per quintal.

On MCX, cardamom lost 1.63 per cent to Rs 694 per kg, while potato gained 2.18 per cent to Rs 515 per quintal.

MCX recorded a turnover of Rs 8,380 crore up to 5 pm, while it was Rs 3,937 crore on NCDEX.

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