Market Update(Agri)

Spices: Turmeric futures may trade lower owing to selling pressure at the spot markets. Traders are expecting farmers to bring more
than 10,000 bags a day to the market for sale next week onwards. Spot turmeric prices decreased by Rs 150 a quintal on Friday on
lukewarm demand from North India. “Due to the harsh winter in North India, turmeric traders are open only by noon. They keep their
shops open only for four hours. Pepper futures may trade sideways supported by thin arrivals at the spot market. However, the domestic demand continued to remain slow, which may restrict the upside. Jeera futures may trade in range of 15600-16000. Higher acreage & selling of old crop at the spot market, may cap the upside.
Oilseeds: Domestic oilseeds may trade in weak zone tracking bearish international prices & selling pressure at the spot markets. At the cash markets, local refiners reduced prices due to lack of demand in the ready market. Buyers kept away from new bets. US soybean futures ended lower, retracing most of yesterday’s gains as traders reduce risk ahead of the weekend. Declines were fueled by improved rain potential for South American crops, with sharply lower crude oil futures encouraging traders to book profits on recent gains. CBOT March soybeans ended down 10c at $11.87/bushel. Sharp price movements aren’t likely next week due to the holiday in China, a major vegoil consumer, unless there is a major development in the euro-zone debt crisis. CPO futures may remain sideways & gains may remain caped owing to sluggish Malaysian prices due to slowing export demand. Moreover, as per Intertek, palm oil products exports from Malaysia for the period of Jan. 1-20 fell by 14.4 per cent to 799,210 tonnes from 933,553 tonnes shipped during Nov. 1-20.

Other Commodities: Sugar futures may trade sideways as market participants awaiting for the clarity on direction of prices & decisions to be taken by govt. Government of India is likely to consider additional sugar exports under OGL in a meeting which is due on 7th February 2012, according to news sources. Government may decide to allow 1 million tonnes sugar exports which will take the sugar export figure to 2 million tonnes in Marketing year 2011-12. Kapas futures may trade sideways with some downside bias on account of profit booking from higher levels. At the spot market, Cotton fell by Rs 500 a candy of 356 kg on lower export and local demand and higher arrivals. Any larger downside may remain capped on reports that The Cotton Advisory Board meeting next week, may revise down output estimates by a million bales for the current year. Chana futures may remain sideways holding support above 3100 levels. The acreage under gram was lower at 89.3 lakh ha as against 93.3 lakh ha last year.

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