| Raw jute prices are seen going up by at least Rs 50 per 100 kilogram in the next 4-5 days after the steep decline last week, traders said Tuesday. The government order for 196,000 bales of jute bags (1 bale=500 bags) for kharif 2005-06 Monday will also help improve prices, they said.
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| The government order will augur well for sacking bags and prices might go up by Rs 1,000 per tonne in the next few sessions, traders said.
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| "Raw jute prices had gone down by about Rs 110 per 100 kilogram in spot and some corrective buying will emerge that will help increase prices by at least Rs 50 per 100 kg," a mill owner said.
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| He said not only corrective buying, but the release of jute bags order from government for August delivery will also keep an upward pressure on prices.
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| The order from the Jute Commissioner's office is in addition to that for 100,360 bales released in June.
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| The futures contracts for September and October may also see an upward pressure, they said.
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| A trader at the Jute Balers' Association said there was hardly any actual transaction in spot market for raw jute as none of the stockists were willing to sell their previous year's stock at current levels.
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| Meanwhile, new season crop is yet to start arriving in the market, though trading in new season crop has already commenced 2-3 days back.
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| "All the transactions in new season crop are based on speculation as there is practically no actual arrival till now. Hardly 2-3 lorries might have arrived, but trading is being done for over 2,000-2,500 lorries," said another trader at Jute Balers' Association.
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| "There is no possibility of new season crop start arriving before July 20," he said. |
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