Date:29/05/2006 URL: http://www.thehindubusinessline.com/2006/05/29/stories/2006052900050700.htm

Back Low buying interest could hit lemon tur

Dhimant Bhatt

Mumbai , May 28

Lemon Tur futures prices are likely rule weak this week on lack of fresh buying interest from dal mills coupled with speculative selling by some operators.

Lemon tur (Myanmar origin) June contract prices were down Rs 120 on Friday to Rs 1,873 a quintal (Mumbai) over previous week on reports of timely arrivals of the south-west monsoon. However, the contracts were up marginally by Rs 40 on Saturday on reports of removal of the additional margin of 15 per cent imposed earlier on all the long positions of tur contracts from May 27.

"The overall market sentiment is weak. Prices may weaken further in the next few days in the absence of renewed buying," a local buyer said.

"Traders and dal millers are staying away at current prices. A downward trend is expected to continue for another 1-2 months and prices may touch Rs 1700-1750 a quintal," an analyst of Karvy ComTrade Ltd said.

Sugar

Sugar (medium grade) futures prices could rule firm this week on some buying support from operators amid reduced offerings by stockists.

Sugar June contracts on NCDEX were up Rs 35-40 at Rs 2,001-2,006 a quintal (ex-Muzaffar Nagar) on some buying support. "Prices may rule firm this week mainly on some buying support, despite steady supply," a local trader said.

Refined soya oil

Refined soya oil futures prices are expected to rule steady-to-easy this week on some offerings coupled with steady supply.

Refined soya oil (RSO) June contracts on NCDEX were steady around Rs 417-420 per 10 kg (ex-Indore) last week, down marginally from previous week.

"Local demand was low," a local broker said. Spot prices of refined soya oil in Indore were hovered around Rs 409-411 per 10 kg last week.

"The price could not hold on to the early gains. It fell somewhat on reports of duty-free imports of palm oil from Malaysia and Indonesia and interim lift from control over imports of soy-oil. There were concerns that this may open door to huge imports of edible-oil," an analyst with Religare Comdex Ltd said.