Barley prices rebounded from last week's lows on Monday on the National Commodity and Derivatives Exchange Ltd (NCDEX) on account of thin arrivals and rain in Rajasthan.
Barley futures for September closed at Rs 1,189 a quintal, up by Rs 7.50. October contracts were quoted at Rs 1,247 (up Rs 4.50) and November contracts gained Rs 9.50 to Rs 1,302 a quintal.
The positive sentiment was attributed to traders creating new positions after the recent slide amid firm spot demand and increased offtake from traders, beer and cattle feed makers along with thin supplies in the physical market owing to rains in Rajasthan, a major grower.
Consumption demand for the cereal mainly comes for malt, poultry and animal feed. Barley malt is used for the production of alcoholic beverages in the country. Production of barley is estimated to decline by 6.50 lakh tonnes from 20.50 lakh tonnes of the last year. This is due mainly to a decline in productivity of barley crop in Rajasthan due to poor rainfall during crop development stage (December- February).
In the Jaipur spot market, barley was ruling firm at Rs 1,212 a quintal.