Date:02/12/2006 URL: http://www.thehindubusinessline.com/2006/12/02/stories/2006120200401400.htm

Back Trading in soya turns volatile

Our Bureau

Mumbai , Dec. 1

Trading in soya and its products turned volatile on NCDEX as traders were expecting the Union Government to raise import duty, which did not happen.

Despite weak international advices, soya oil prices on Friday opened at Rs 479 per 10 kg, moved up to Rs 483 before closing near the day's low of Rs 475, losing nearly 2.9 per cent.

Pepper bumpy

Pepper prices on NCDEX were bumpy touching the day's high of Rs 10,716 per quintal, dropping to Rs 10,355 before closing at Rs 10,640, a loss of Rs 400 per quintal.

Its production this year is expected to fall by 20,000 tonnes to 35,000 tonnes.

Seen bullish

"Pepper output is expected to move into the international and domestic markets a month in advance this year. The short-term trend for pepper may be bearish but our long-term prediction still remains bullish with domestic production expected to fall short," said Mr Harish Galipalli, head of research, Karvy Commodities.

Almost 95 per cent of the commodity futures on NCDEX and MCX closed near their opening levels after swinging both ways. Cardamom on MCX lost 2.05 per cent to Rs 383 per kg as there were no fresh arrivals.

Chilli bullish

Chilli continued to remain bullish on NCDEX. Fresh export orders from China pushed up chilli prices by 1.25 per cent to Rs 6,955 per quintal. Kapaskhali (a cotton variety) on MCX went up by 1.92 per cent to Rs 292 per 50 kg while kapas gained 1.78 per cent to Rs 394 per 20 kg.

Mentha oil gained one per cent to Rs 675 per kg.