Cotton on MCX settled up by 1.37% at 21450 due to expectation of export demand to China. Though, some gains were limited on good arrivals from major producing belts. The cotton trade body maintains a higher crop size of 34.1 against 33.8 million bales, prices are unlikely to cool off in the near future. With an opening stock of about 4.5 million bales at the beginning of the 2016-17 season, the Cotton Association of India (CAI) has projected a total demand of 29.5 million bales for the year, against 38.2 million bales last year. CAI's estimates put available the surplus at 11.2 million bales. However, looking at the trends in cotton arrivals at mandis, as much as 70 per cent of the crop is believed to have already hit the market.
Cardamom on MCX settled up by 1.35% at 1389.5 on good buying amid a squeeze in supply at auctions held in Kerala and Tamil Nadu. Upcountry dealers as well as exporters were covering as it has become clear that no arrival of fresh cardamom will take place till the next season picking begins, by mid-June. This sentiment has prompted all stakeholders to become active in the market. Consequently, prices moved up by Rs. 20-30 a kg last week. Quality of the capsules arriving were not up to the mark and there was a shrinkage in supply. Arrivals last week stood at 295 tonnes as against 390 tonnes the previous week. Though the south-west monsoon was declared “normal” last year after two consecutive years of drought, the cardamom growing areas received poor rains.
Maize on NCDEX settled down by -1.27% at 1404 tracking weakness in spot demand and overseas prices on pressure from record South American supplies. Argentine corn should benefit this season from high yields brought by good weather, the Buenos Aires Grains Exchange said, adding that it may increase its harvest estimate above the current 54.8 million tonnes. The U. S. Department of Agriculture reported weekly export sales of old-crop U. S. corn at 1.255 million tonnes, above a range of trade expectations and the most in seven weeks. The U. S. Department of Agriculture reported export inspections of U. S. corn in the latest week at 1,547,022 tonnes, at the high end of a range of trade expectations. Private analytics firm Informa Economics raised its projection of U. S.
Jeera on NCDEX settled up by 1.5% at 17220 on reports of lower production estimates in the producing belts of Gujarat. Lower carryover stock coupled with higher export demand may push up jeera prices, as traders fear tight supply conditions in the coming months. The carryover stock has dipped to about 2 lakh bags (each of 55 kg) as against the normal 20-25 lakh bags, thereby reducing the availability even as the demand for exports and domestic consumption remains firm, trader sources said. Turkey and Syria, India’s key competitors in the international market, are less likely to add supplies as the production in these countries is believed to hover at around 12,000 tonnes and 20,000 tonnes, respectively.
Turmeric on NCDEX settled down by -1.39% at 6260 due to increasing in the face of weak domestic and weak export buying. Tight money market and reports of increased production the back of favorable weather may pressurize prices. Arrivals are increasing on weekly basis and higher than last year as a result of higher production. India's Apr-Dec turmeric output grew 6% to 68,500 ton. Turmeric output is expected to be bumper as not only the acreage was higher but weather remained favourable. At Nizamabad market estimated market supply was at 16000 quintals, lower by 2000 quintals from previous day’s arrivals. At Erode market total arrivals are at 7000 quintals, up by 3000 quintals from previous trading day.
Mustard Seed on NCDEX settled up by 1.41% at 3955 on supply worries following reports of unfavourable weather. Prices of seed were up as the rainfall activity along with localized hailstorms has disturbed harvesting of rabi crops over the parts of Rajasthan and Madhya Pradesh. India is expected to produce around 6.5-7 million tonnes (mt) of rape mustard seeds in 2016-17 as compared to 5.8 mt produced in 2015-16 due to higher acreage and improving productivity. The carry- forward stock from the previous season was around 0.15 mt. The Ministry of Agriculture expects 8.5 mt of mustard seeds to be produced in the current rabi season against 6.8 mt a year ago, as per its 4th advanced estimates.
Crude palm Oil on MCX settled down by -0.13% at 535.2 tracking weakness in spot demand and weak international prices. However downside seen limited as supply shortage worries from Indonesia following speculation of returning of el-nino will support prices . Palm oil stockpiles in Indonesia slumped in January after production in the world's largest oil producer, declined and exports increased. Reserves fell to 2.86 million tons from a revised 3.75 million tons in December, according to data released by the Indonesian Palm Oil Association. Gapki also revised its December figure from 1.07 million tons as it collected more data from producers, the group said.
Ref. Soyaoil on NCDEX settled down by -0.18% at 647.4 on profit booking after price seen supported amid hopes of strong demand for festivals and wedding season. Pressure also seen amid higher imports of edible oil in Feb and cut in base import prices for edible oil. According to data released by the Solvent Extractors' Association of India (SEA), India's edible oil imports rose 15.8% on year to 1.23 mt in February. The government has cut the base import price of soyoil by $9 per tonnes for second half of March. The base import price of crude soyoil is now at $805 from $879 during Feb first half. India imported 17 per cent more vegetable oil in February 2017 at 1,270,443 tonnes, compared to 1,082,009 tonnes in the corresponding month last year.
Soyabean on NCDEX settled up by 0.72% at 2918 on account of lower supplies at the spot market. However, weak cues from international markets following reports of bumper crops, capped some gains. The supplies have been lower due to lower prevailing prices. There is steady domestic as well as export demand at lower levels. Soybean exports during Oct-Feb were estimated at 112,000 tonnes, compared with 80,186 tonnes in the year-ago period, as per SOPA press release. Arrivals during February fell to 650,000 tons as compared to 900,000 tons in January. U. S. soybean futures closed little higher on Tuesday on bargain buying after prices fell for 10 of the previous 11 sessions. The expectations for the huge South American harvest may check upward movement.
Mentha oil on MCX settled down by -2.19% at 967.4 on fresh selling after the speculation that sowing activity had been inceresed in key production area. Mentha oil prices also dropped on account of muted demand from major consuming industries in the domestic spot market. Further, ample stocks position on higher supplies from major producing belts of Chandausi in Uttar Pradesh, too influenced mentha oil prices. The weather looked good and everything seemed fine as of now as farmers are still under stress, as they have already suffered a lot because of demonetization. As cash is the primary mode of transaction in agriculture sector which contributes 15% to India’s total output.
Aluminium on MCX settled up 0.08% at 125.4 as prices recovered from lows as support seen after substantial increases in cancelled warrants. Prices also seen supported amid renewed calls for an appropriate response to overproduction in China’s aluminium sector. Total cancelled warrants are now their highest since July last year at 895,255 tonnes, of which almost 225,000 tonnes were booked this week. Cancellations account for 45.5% of the 1,964,600 tonnes of stocks. On- warrant or available metal at 1,069,375 tonnes is at its lowest since July 2008. Outside of the regional premium arbitrage and warehouse games, the flurry of cancellations has also created a bottleneck in PGS warehouses in Busan and Port Klang.
Nickel on MCX settled down -0.78% at 658.4 tracking LME prices falling 1.4 percent to end at $10,020, pulled down by losses in Chinese steel futures. Prices also remained under pressure on concerns that U. S. President Trump had yet to implement mooted tax cuts and infrastructure spending. The INSG estimates that global nickel market was in a small deficit of 1,130 tonnes in January 2017 after recording a deficit of 41,520 tonnes in the whole of 2016. The INSG expects a deficit of 66,000 tonnes this year amid growing demand from the stainless steel sector. Nickel experienced upside earlier in the month when Philippine President Rodrigo Duterte threatened to stop all mining in the world’s biggest exporter of nickel.
Zinc on MCX settled up 1.5% at 186.65 as support seen after the update that Brazilian group Votorantim has halted operations at its zinc smelter Cajamarquilla in Peru as a precaution amid flooding and mudslides that have disrupted transportation and restricted running water in the Andean country. The company told that it was carrying out maintenance work to restart operations as soon as weather conditions allow. It declined further comment. Peru, the world's third- biggest producer of zinc and second-largest copper producer, is bracing for another month of flooding after a sudden warming of Pacific waters off Peru's coast unleashed deadly downpours in recent weeks.
Copper on MCX settled up 0.73% at 381.90 edged higher reversing losses that led prices to trade at a one-week low, as stocks recovered slightly and investors closed out short positions. Support seen after London Metal Exchange copper edged up 0.1 percent to $5,818 a tonne adding to a 0.6 percent gain from the previous session when prices plumbed their lowest since March 10 at $5,715 a tonne as broader investor sentiment revived. In Peru, a 1,300-worker strong strike at Freeports' Cerro Verde mine which recently underwent a massive expansion is set to end on Thursday on government orders, but the union vowed to down tools again on Friday.
Naturalgas on MCX settled down -1.29% at 198.20 on profit booking pulled back from the strongest level since February as traders continued to monitor shifting early-spring weather forecasts. Warm to mild conditions will dominate most of the U. S. this weekend, even as a spring-like weather system with heavy showers and thunderstorms impacts the central U. S. Next week will be mostly mild to warm across the country with limited demand for heating or cooling besides the far northern U. S., according to forecasters at NatGasWeather. com. Meanwhile, market participants looked ahead to weekly storage data due on Thursday, which is expected to show a draw of 147 billion cubic feet in the week ended March 17.
Crudeoil on MCX settled down -0.13% at 3164 prices were a bit lower as recovered from steep early losses after government data showed gasoline stockpiles continued to fall last week. Yesterday the EIA said that crude oil inventories rose by 5 million barrels to 533.1mbls compared to estimates of an increase of only 2.8mbls. Gasoline inventories dipped by 2.811 million against expectations for a draw of 2.008mbls while distillate stockpiles fell by 1.910 million barrels, compared to expectations of a 1.386 million decline. While Crude have slid for a third straight day, as fears grew that a ramp up in U. S. crude and shale oil production may dampened OPEC’s efforts to rebalance supply and demand in the industry.
Silver pared gains to settle flat amid doubts over President Trump's economic policies while weaker than expected economic data supported upside momentum. U. S. home resales fell more than expected in February amid a persistent shortage of houses on the market that is pushing up prices and sidelining prospective buyers. With the U. S. workforce nearly fully employed and inflation heading toward 2 percent, the Federal Reserve should raise interest rates two more times this year and continue work on a plan to gradually trim its massive balance sheet, Dallas Federal Reserve Bank President Robert Kaplan said. A report released by the Conference Board showed that its index of leading U. S. economic indicators climbed to its highest level in over a decade in February.
Gold prices gained as the dollar fell to seven-week lows and bond yields sank on uncertainty over the economic policies of U. S. President Donald Trump. A lack of concrete policy from the Trump administration is increasing gold's attraction as a safe-haven investment. U. S. home resales fell more than expected in February amid a persistent shortage of houses on the market that is pushing up prices and sidelining prospective buyers. Most U. S. and European share indexes fell or were little changed, while the greenback extended losses to a seven-week low against a basket of major currencies, on concerns over potential delays to Trump's pro-growth policies unnerved investors. Gold was also supported by a further drop in U. S.
Cotton on MCX settled down by -1.02% at 21330 as exports to China may slow down till September due to reserve stocks auctions. Further, rising arrivals from major producing belts also weighed on cotton. Cotton Association of India pegged cotton production for year 2016-17 at 34.1 million bales higher by 1% as compared to 33.8 million bales produced last year while total domestic consumption was estimated at 29.5 million bales. Government also pegged total cotton production for year 2016-17 at 32.507 million bales in its second advance estimates. In addition to this, cautious trading ahead of USDA monthly global supply and demand estimation report which is scheduled to be release also kept cotton under pressure.
Cardamom on MCX settled down by -2.22% at 1402.5 as stockists are on the fence due to tight money market though stock position is tight. However, warmer weather in the all the producing centres of south India may check price fall. Poor South West and North East monsoon is likely to impact adversely on the production of cardamom for the coming season as well. Cardamom prices are likely to trade range bound to firm for the coming couple of weeks, the report added. Harvesting of cardamom is over and arrivals are likely to decline in the coming days. According traders estimates, cardamom production for the current year is around 18,000 ton down from 28,000 tons a year ago showing a fall of 35.7% on year.