Barley climbs over 2% on crop damage, spot demand

Traders build positions as higher offtake from beer makers supports uptrend

Barley prices rose by Rs 26.50 to Rs 1,317.50 per quintal in future trading today as traders raised their positions amid reports of damage to crops due to unseasonal rains and hailstorms in growing regions.

At the National Commodity and Derivatives Exchange, barley prices for delivery in June shot up by Rs 26.50 or 2.05 per cent to Rs 1,317.50 per quintal, clocking an open interest of 13,460 lots.

Also, the May contract was trading at Rs 24.50 or 1.94 per cent higher, at Rs 1,287 per quintal, showing an open interest of 21,830 lots.

Traders attributed rally in barley prices to speculative positions built up by participants, driven by reports of damage to its crop following recent unseasonal rains and hailstorms in growing belts and low stocks in the market.

Besides, strong demand from beer makers following rising mercury, influenced barley prices at futures trade here, they said.