Bullion shines brighter

Updated: Mar 31 2006, 05:30am hrs
It was the day of records in commodity markets with bullion breaching the previous highs. Gold prices rose to the highest since January 1981 and silver rallied to the highest in 23 years on demand from investors. Weak US dollar against Euro and strong investment demand for the metal is said to be major reason to this behaviour of price. Crude gave company with metals, rise on supply concerns and overnight gains in the international market.

Agri sectors remained silent on thursday, as most of the investors were busy in bullion. Closure of most of the spot markets in north India owing to ugadhi also kept most the traders away from the market.

Market watch

Sugar, after a strong rise, remained stagnant on thursday in the absence of major buying support. India will allow State Trading Corp, a government controlled trading company, to export 300,000 to 400,000 metric tonne of sugar on higher production in the country. The countrys sugar output may rise to 18.5 million tonne in the year ending Sept 30 from 12.6 million tonne a year earlier, Union agriculture minister Sharad Pawar said on Feb 21. India imported 2 million tonne of sugar in the year ended September 2005, to plug a deficit caused by two years of falling output.

Wheat prices ended down marginally in futures market on Thursday. India may import an additional 1.5 million tonne of wheat to boost its emergency stockpile, PTI said citing Mr Pawar. The country, which is the worlds second-biggest wheat producer, plans to import 500,000 tonne of the grain this year, it said in February. AWB Ltd, Australias monopoly wheat exporter, has won the contract to supply the cereal.

Asian rubber futures settled mixed on Thursday, with no strong leads to provide direction.

Courtesy: Geojit Commodities Ltd