Agri Business

Barley drops lower on global cues

| Updated on: Oct 04, 2012
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Barley prices dropped by the maximum permissible limit on Thursday on the National Commodities and Derivatives Exchange following a drop in global grain prices.

Hopes of higher acreage for barley, a rabi crop, are also putting pressure on the counter.

The October contracts declined by 4 per cent to Rs 1,119 a quintal, while the November and December contracts slid by 3.8 per cent each to Rs 1,181 and Rs 1,221.5 respectively.

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

Globally, the grain counter was under pressure from a fall in wheat and corn prices on the CBOT.

Corn December contracts on CBOT slid to $7.56-3/4 a bushel on Wednesday following the sluggish demand. December wheat futures on CBOT ended up 1-1/2 cents at 8.73 a bushel after slipping to $8.73.

Barley production is estimated to have declined by 6.50 lakh tonnes from 20.50 lakh tonnes last year. This is due to the fall in productivity of barley in Rajasthan on poor rainfall during the crop development stage (December- February).

In the spot market at Jaipur (Rajasthan), barley was traded at Rs 1,187.75 a quintal.

Published on October 04, 2012

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