Barley futures declined by 2 per cent on Tuesday on reports of sowing picking up in the growing areas. The grains counter as a whole ended on a bearish note on account of weak global cues.

On the National Commodities and Derivatives Exchange, December contracts slid by 2.15 per cent to Rs 1,410 a quintal, while the January and February contracts declined by 2 per cent and 1.76 per cent to Rs 1,451 and Rs 1,481 respectively.

Restricted offtake by traders, beer and cattle-feed makers also depressed sentiment. Investors added to the trend by booking profits.

Barley has been planted on over 3,34,000 hectares so far this rabi season, down from 4,25,500 hectares in the same period a year ago, the latest Government data shows. The acreage under barley is highest in Rajasthan at 1,36,000 hectares so far.

According to the first advance estimates, the Government aims to produce 1.5 million tonnes of the coarse grain in the current season.

In the spot market at Jaipur (Rajasthan), barley was quoted at Rs 1,394.6 a quintal.

Globally, the grain counter was under pressure with US wheat crop ratings hitting a record low and the Black Sea regions such as Russia and Ukraine planning to impose restrictions on wheat/barley exports.

(This article was published on November 27, 2012)
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