The Hindu Business Line : Arecanut may rule lower

Arecanut (Jahaji MVJ garbled) futures prices may continue to rule weak this week on limited buying from co-operatives against continued inflows at the major terminal markets of South Karnataka, a trader said.

Arecanut May contracts on MCX platform declined Rs 1,100 to close at Rs 8,775 a quintal (Ex-Mangalore) on Saturday over previous week's close of Rs 9,900 on reports of peak inflows in Karnataka.

"Daily inflows have reached to a season's peak level of 25,000 bags (50 kgeach) this week. Fresh demand from local co-operatives and upcountry traders is relatively low," Mr Somdutt Sharma, a Mangalore-based trader said.

Spot prices in the Mangalore market were also ruling around Rs 7,800-8,400 a quintal last week.

"Futures prices may continue to rule lower on increased supply against limited buying interest,' he said.

Chana may slip

Desi Chana (Rajasthan) futures prices may weaken further this week on sluggish demand coupled with continued offerings by some stockists.

Chana May contracts prices on MCX platform dipped Rs 25-30 to settle at Rs 2,295 a quintal on Saturday (ex-Delhi) from previous week close of Rs 2,325 on profit-taking, while May contracts prices on NCDEX platform were down Rs 20 to trade at Rs 2,291 from Rs 2,312. Overall trading volume on both the exchanges was low.

"Futures prices may rule lower this week on lack of fresh buying interestdue to quality problem," a trader said.