Following the positive forecast by the India Met department, farm commodities tumbled on the futures platform.
Most farm futures on the National Commodity and Derivatives Exchange traded lower on forecast of above-normal monsoon by Skymet on Monday and the India Meteorological Department today. According to the IMD, South-West monsoon rains are likely to be above normal at 106 per cent of the long period average.
Among spices, coriander futures settled lower as spot prices declined due to increased arrivals in the spot market and weak export demand. Turmeric futures ended down due to an increase in arrivals.
Jeera futures declined taking cues from the weak sentiment in the local market, where prices fell due to low demand from stockists and exporters.
Mentha futures on the Multi Commodity Exchange of India ended higher on short covering by market participants.
Sugar futures on the NCDEX were trading slightly higher due to short covering. However, a fall in sugar prices in the spot markets capped any sharp gains in futures.
Barley futures ended down due to subdued demand from stockists and the malt industry.
Despite a fall in arrivals, mustard futures ended down as the bourse imposed an additional margin of 5% on long and short positions of all contracts from Wednesday.
Soyabean futures ended down on expectation of favourable monsoon in 2016-17. Refined soya oil contracts were trading lower due to weakness in soya oil contracts on the CBOT.
Crude palm oil futures were trading lower tracking the bearish trend in the parent contract on the Bursa Malaysia Derivatives, which saw a decline due to lower exports and expectations of above-normal rainfall in major importer India.
Chana futures closed lower due to imposition of additional margin of five per cent on long and short positions of all contracts with effect from Wednesday.
Rubber futures on the National Multi Commodity Exchange were in line with the spot and international markets, where prices rose due to shortage in supplies.