Barley dropped on lack of fresh buying. The commodity had added good gains in intraday moves today, extending the modest rise on Saturday as good demand from stockists and continued rollover in futures market supported the counter. NCDEX Barley futures for May closed at Rs 1341.50, down Rs 27 per quintal or nearly 2%. Open interest is down 6% on the day.
Total Barley output in India is expected to be 1.82 Million Tonnes in the latest rabi season, up 12.34% over the year according to the agri ministry updates.
Demand from stockists is picking up and could support the prices in coming days. However, the arrivals remain plentiful and should maintain the same trend over next few weeks. The IGC sees global 2013/14 barley production at 138 million metric tonnes (mmt), which is up from the 130 mmt produced in 2012/13. World exports are forecast at 18 mmt and domestic use at 136 (132) mmt. Ending stocks are expected at 25 (23) mmt.
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