Urad cruises up

Updated: Mar 30 2006, 05:30am hrs
Commodity markets seems to be buzzing with activities these days, and Wednesday was no exception. It looked that the FMC chairmans decision to raise the interest rate, have curtailed the progress of bullions at least for the time being as the same came down crashing. But market watchers were in for a surprise as the same looks in doubt as they made a strong come back late in the day.

Crude oil was also seen buzzing with activity on reports of lower gasoline stocks and a proposed new ETF foe crude oil. The surprise packet of the day was undoubtedly urad, that is defying logic and continue to soar and at the same time was churning in volumes.

FMCs decision to impose additional margin looks to have curtailed other pulses, but certainly not urad and the commodity looks strong for further cruises. Over all, at the end of the day in which there was tremendous activity the honors ended almost even.

Market watch

Spices had a mixed day at the office with the king and queen registering solid performances. Cardamom prices recovered courtesy of unconfirmed reports of it, coming in the new EXIM policy to be released on April 7, while pepper made some lazy move up courtesy the pending subsidy decision that will be released officially on Thursday.

Chilli was having an up and down day with the prices first going up and then coming down. Spot prices that tumbled down by more than Rs 200 were instrumental in the prices falling down in futures market by nearly 2%. Ample supply from the producing regions resulted in arrivals of 16,000 bags.

Rubber was looking to hold on to its technical supports as short covering continued. The falling global prices only pressurised the prices to come down in spite of high crude oil prices. Overall the future looks good for rubber with the prices expected to pick up in days to come.

Courtesy: Geojit Commodities Ltd