Markets stagger downwards

Updated: Nov 15 2005, 06:24am hrs
The markets lived up to the hype that has surrounded the market openings in recent times after the weekend and it didnt disappoint and rendered another stupendous performance. The only drawback was that the battle was one-sided and was dominated by the declining ones despite the tough battle.

The pulses hogged the limelight yet again but this time it was for all the wrong reasons. While chana and tur came down after recovering on Saturday urad dominated the headlines for the massive change in fortunes after their meteoritic rise to the top. Even the Guars that ended the day lower by nearly 3.5% apiece.

Market watch

It was a black day for the domestic rubber prices not only in the futures market but also in the spot market the impact of which is long lasting as it squashed the domestic rubbers long cherished dream of catching up with the international prices.

The near month contract tumbled down by 4% as it came under severe selling pressure due to the cutoff that is round the corner. Elsewhere the international prices remained mixed. Tocom rubber futures remained mixed in the absence of fresh market-moving factors.

The crude prices that crashed down on Wednesday added further pressure on its prices but the benchmark April RSS3 contract at 186.9 yen/kg lower by 0.6 yen.

With market having fallen quite sharply in first two days of the week, scope for further near-term losses seem limited and thus limited the impact of the low crude prices. Osaka rubber futures settle mostly lower, tracking falls in crude oil futures and increased physical rubber supplies.

Rubber contracts on the Agricultural Futures Exchange of Thailand settled slightly higher, tracking gains in USS3 prices. But gains are limited, as physical rubber supply expected to rise during the month, which is expected to add further pressure on prices.

Wheat prices continued to surge up on the domestic futures market on the basis of some supportive fundamentals. The estimated production for the year is expected to be down and the government has already started talking about exporting wheat. This inturn is expected to push up the prices further.

US Department of Agriculture forecast production from the new wheat crop in India at 72.0 million tonnes, down a tad from actual old crop output of 72.1 million tonnes. All these resulted in pushing up the prices to record levels in the domestic futures market.

Spices with the exception of cardamom had a very forgettable day with none of them managing to stay out in the positive territory. It was a mixed day at the office for sugar while most of the commodities gur, jute, maize and the soy products entered way down.

Courtesy: Geojit Commodities Ltd