Metals melt on correction

Updated: Nov 24 2005, 05:33am hrs
Commodity markets with its own fashion witnessed wild fluctuations in most of the commodities amid good activity today. After a prolonged control of bulls, the much-awaited correction came in bullions like gold and silver giving some short-term relief to the upward rally.

Copper prices too had a free fall after continuous rise that witnessed in the previous days. Spices like pepper and jeera showed buoyancy in price and attracted most of the investors. Bearishness continued in commodities like urad, tur, yellow peas and wheat and kept the prices to trade in negative territory till the end of the day. Overall the declining ones were dominating the advancing ones today.

Market watch

Pepper prices spurted up on strong speculative demand in the futures market. In NMCE and NCDEX prices rose by more than 3% on strong buying interest. Rise in domestic demand especially from North Indian centers and anticipation of decline in this year production is the primary reasons for buoyancy in price according to traders. Jeera extended its earlier gains and remained firm. Other spices like turmeric and chilli showed rangebound pattern and absence of fresh fundamentals.

Bear hug continued in pulses especially urad had a free fall on severe selling from the operators. An expected good crop of Burmese urad (arrival during Feb- March), good rabi crop from Andhra Pradesh from Indian market (arrival during Feb-March), cheap import from Thailand are the fundamental reasons for downtrend in prices.

Bearish technical charts also attributed this fall according to analysts. Other pulses like chana and tur remained range bound throughout the day.

Courtesy: Geojit Commodities Ltd