Profit Taking To Continue In Barley Futures On Weak Malting Demand

capital market | Mumbai |

Profit Taking To Continue In Barley Futures On Weak Malting Demand

Weakness is likely to persist in barley futures due to strong rise in global barley supplies in the current year along with weak demand of malting industries during the winter season. The NCDEX Barley futures pared almost 1% in last trading.

As per the latest monthly report release by United States Department of Agriculture (USDA ) , the global production of barley in 2012-13 is estimated at 130.8 million tonnes , up 0.10 million tonnes from the previous estimates . USDA also raised the global ending stocks by 0.70 million tonnes to 20.21 million tonnes due to poor global consumption.

Moreover, fragile demand of malting industries during the winter season also added some selling pressure in barley market. The sowing of barley has already been started in some parts of Rajasthan. As per the latest release from Rajasthan Agriculture department, the total sowing acreage of barley as on 9th November, 2012 was reported at 0.38 lakh hectares, down 34% from the last year in the same period.

Consequently, the future prices of Barley NCDEX December Benchmark contract decreased by Rs 8 per quintal to close at Rs 1423.50 per quintal in the last trading. The contract pared almost 140 positions in open interest indicating long liquidation by traders and millers. Technically, traders can initiate some selling around Rs 1435-1438 per quintal while supports are likely at Rs 1402-1405 per quintal in the short term.

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