Barley moves up

COMMODITY SPIKES

Continuous buying from the overseas market has fuelled barley prices, with all indications signalling that the upward trend will continue. Spot prices of barley in the Jaipur market (delivery centre), which hovered around Rs 750 a quintal a month ago, climbed to Rs 830 a quintal on Saturday, up 10.67 per cent. "Booking for exports is on the rise and any slowdown in the near term seems unlikely," said Abhishek Agarwal, a Jaipur-based trader.

According to traders, the market will remain bullish and is likely to cross Rs 900 a quintal. The barley production is likely to touch 1.34 million tonnes in 2006-07 season, up 10 per cent from 1.22 million tonnes in the previous year.

However, the increased output falls short of the government target of 1.65 million tonnes. Barley, grown during the rabi season, is mainly used as an animal feed in the country. Last week, barley remained range-bound between Rs 848 and Rs 857 a quintal.

On the National Commodity and Derivatives Exchange (NCDEX), the near-month barley contract closed at Rs 848 a quintal on Saturday.