If it was the bulls that ran riot the previous day, on Tuesday it was the turn of the bears to gain upper hand. The bears were given a run for their money, especially by tur that had the honour of leading the pulses for the first time and in the process registered gains of more than 3% on heavy speculation. Chana also closed higher, registering gains of nearly 3%, especially on a late surge made during the last 30 minutes during the day. But making the case stronger for the bears were bullion and energy that came down on contrasting reasons. Gold fell in London after Federal Reserve chairman Ben S Bernanke said the US economy has a positive outlook that strengthened the dollar against the euro for the second day. Mr Bernankes speech, on Monday, in New York suggests that further interest rate increases are round the corner and this in turn is likely to give further weightage to US dollar in days to come. Crude, on the other hand, continued to stare down the barrel amid speculation that US stockpiles of oil grew last week to their largest in nearly seven years.
Physical rubber market improved moderately during the day inspite of the Japanese markets remaining closed. The undercurrent appeared firm as covering groups maintained the prices at marginally higher levels expecting renewed quotes from the tyre sector. The arrivals and transactions were low, as sellers kept away from the market expecting the prices to rise up to their expectations. Coffee was not as lucky as rubber as prices continued to limp down, basically on reports of excess production in growing areas. The latest to join the bandwagon was Malawi that is expecting a rise of nearly 19% over the last year. Coffee output is expected to increase to about 2,250 metric tonne, compared with 1,885 metric tonne last year.
Courtesy: Geojit Commodities Ltd