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G. K. Nair

Bull cartels are pushing up prices

Kochi , Sept. 3

Tight supply position in the world market and the consequent persistent upward trend in the prices of all origins seem to have enthused investors to actively engage in buying spot and selling futures.

Unconfirmed reports that MG 1 has been traded in to the US and Europe at $2,675 a tonne have pushed up the prices in the futures market on Saturday, market observers told Business Line.

International market is said to be steady.

Meanwhile, some US brokers were quoted as saying "buyers are sidelined not following the market".

Indonesia was offering Lampong Asta at $2,725 a tonne (c&f), while Brazil at $2,450 a tonne (c&f).

According to observers, bull cartels are pushing up the prices and the operators are buying back.

All the contracts on major exchanges showed substantial rise on Saturday.

September contract on NCDEX went up by Rs 161 to close at Rs 11,979 a quintal.

On NMCE, it increased by Rs 250 a quintal to close at 11,800. The increase in other positions on NCDEX was from Rs 205 to Rs 257 a quintal, while on NMCE, it was from Rs 243 to Rs 406. The total turnover on NCDEX dropped by 12,553 tonnes to close at 25,421 tonnes from 37,974 tonnes on Friday. On NMCE, it fell by 1,333 tonnes to 4,331 tonnes from 5,664 tonnes.

The total open interest on NCDEX stood at 27,840 tonnes as against 26,999 tonnes, while on NMCE it was at 4,980 tonnes compared with 4,988 tonnes.

The outstanding position for September and October on NCDEX was 3,764 tonnes and 1,774 tonnes respectively.

On NMCE, it stood at 3,724 tonnes for October.

In tandem with the increase in the futures, spot prices shot up by Rs 300 a quintal on Saturday to close at Rs 10,800 (un-garbled) and Rs 11,200 (MG 1).

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