Pulses were under pressure the whole weak as bears were under control of the market. Chana for August delivery in NCDEX dropped 2.10% from last week and was the second active commodity traded in that exchange. Other pulses like Urad, Tur, and Masur showed similar bearish patterns. However weekend short-covering and technical buying interest limited the losses at the end. Pules prices may further weaken in the next week, according to traders.
Rubber prices continued its upward march on incessant rains in the plantation areas and sharp reduction in inventories. In NMCE the near month August futures ended at Rs 6973 up by Rs 221 from Rs 6752 last week. In the spot market after a minor fall prices witnessed smart recovery to finish at Rs 69.00 per Kg. Coffee prices remained range bound on sluggish international trends.
Spices witnessed downtrend in prices this week on weak demand and huge stocks. Pepper prices slipped on decline in international prices offers from Vietnam and Brazil. Vietnam is left with about 35/40000mt which at this stage should not be a problem to sell prior to their new crop in early 2006.
Reports from Vietnam are indicating a certain lateness of the 2006 crop and a drop in their yield of 20-25% from this year. Jeera prices declined by 2% for all the contracts on poor demand. Other spices like cardamom, chilli and turmeric showed similar trends. Lack of both domestic and export demand is the reason for this behaviour of price, according to exporters.
Oil and Oil seeds
Soya bean, refined soyoil and crude palm oil prices plunged down this week on weak international signals. The decline in price was initiated by sharp fall in crude palm oil in Bursa Malaysia Derivatives and Soyoil prices in Chicago Board of Trade. Weakening technical charts and improving weather report strengthened bearish sentiment in edible oil segment across the board. Oil seeds like castor seed, mustard seed remain soft throughout the week.
Energy and metals
Crude prices spurted up and gained more than 3% for all contracts in MCX this week. US light crude futures rose above $60 a barrel on Friday after a report of an explosion and fire an oil refinery in Texas. Rise in international prices spurred buying interest in the domestic markets. Gold and silver prices were busy this week on high volatile currency movements. Weak US dollar and geo political tensions kept the safe haven metal firm. In line with gold and silver, prices rose sharply around the globe. Base metals like copper gained substantially on firm overseas advices. COMEX copper prices continued its upward momentum on Friday too. Although warehouse stocks were slightly up, prices remained to be bullish due to ongoing labour strikes in Arizona and Texas.
Guar Seed and Guar Gum prices plunged down by more than 6% this week. Huge stocks and anticipation of better crop continue to weigh on prices. Guar Seed was the top star of this week recording an turnover of 7419.95 crores Cereals like wheat, maize and rice remained almost range bound and ended slightly lower on week on week basis.
Courtesy: Geojit Commodities Ltd.