Cotton on MCX settled up by 1.83% at 20570 tracking firmness in spot demand amid lower arrivals in local mandis. India' cotton arrivals up to Jan 19 stood at 12.80 million bales during the 2016-17 marketing season, this is 5% below the arrivals in the same period last year, the data published by Cotton Corporation of India (CCI) said. Meanwhile, Chinese markets are gearing up for the Lunar New Year which will be celebrated on Jan 28. This will result in the global activities slowing down as whole of South East Asia gets impacted by these festivities. India's cotton arrivals falls 5% to 12.83 million bales until Jan 19 on late commencement of supplies though output for the 2016-17 is expected to higher.
Cardamom on MCX settled down by -1.52% at 1520.3 on profit booking after prices gained amid falling supplies due to weak output and fag-end of the season. Harvesting across major estates in Kerala has almost completed while upcountry buyers and exporters are active in buying as they see little availability moving ahead. Though the south-west monsoon was declared “normal” last year after two consecutive years of drought, the cardamom growing areas received poor rains. Cardamom farmers say the monsoon was very bad and about 50 per cent deficient. A failed north-east monsoon also added to the crop worry. The farmers say that last year they received just about 10 per cent rains compared to what they used to get normally during the north-east monsoon.
Maize on NCDEX settled up by 1.16% at 1480 tracking firmness in overseas prices and due to stockiest demand. In Ahmadabad region of Gujarat, poultry feed makers quoted maize steady at Rs. 1500 per quintal while starch feed makers quoted it firm by Rs. 5 per quintal to Rs. 1530 per quintal compared to last week. The U. S. Department of Agriculture's weekly export sales report put corn sales at nearly 1.4 million tonnes, topping a range of trade expectations. The USDA also said that private exporters in the last day sold 126,312 tonnes of U. S. corn to unknown destinations. The International Grains Council raised its forecast for the global grains crop in 2016/17 from an already record level, partly driven by an improved outlook for China's corn crop.
Jeera on NCDEX settled up by 1.59% at 18165 due to weak output in Gujarat amid tight stocks and good export demand. Jeera output in Gujarat, the largest producing state, may fall 11% to 212,000 tonne during 2016-17 following lower acreage and adverse weather conditions, according to state agriculture department data. Last year, Gujarat produced 238,000 tonnes jeera. During 2016-17 jeera acreage declined to 278,000 hectares from 292,000 hectares a year ago, data showed. Jeera output per hectare is projected at 761 kg per down from 833 kg a year ago. Above normal temperature impacted the yield jeera yield. Jeera acreage in Gujarat was marginally down at 279,000 hectare but adverse weather pulled down yield to 761 kg from 833 kg per hectare a year ago, data showed.
Turmeric on NCDEX settled up by 1.64% at 7058 amid fears of fall in output in Tamil Nadu. However upside seen limited thanks to reports of higher output. According to trade sources, turmeric output is expected to be over 600,000 tonne. Turmeric prices to remain under pressure with arrivals improving and continued the stockiest selling, however, steady export demand to limit the price fall. There are reports of some damage to turmeric crop in Tamil Nadu due to dry weather. India exported about 51,147-tonne turmeric during Apr-Aug 2016-17 up by 32% on year, as per the data released by commerce ministry. The price of the spot turmeric increased slightly on Thursday. Around 2000 bags of turmeric arrived for sale and 70 percent stock was sold.
Mustard Seed on NCDEX settled down by -0.15% at 3919 tracking weakness in spot demand amid higher supply. Pressure also seen amid oversupply woes as the upcoming mustard crop has entered into the prodding stage and weather is favourable till next week due to which traders are anticipating that new mustard crop will be higher by around 10-15% over last year. Demand for rm seed is expected to rise on the higher cold weather which solidifies other oil. Minimum temperatures continued to be below normal at many places over Rajasthan, Punjab, Haryana, West Uttar Pradesh, West Madhya Pradesh, Chhattisgarh, Telangana and Rayalseema. Maximum temperatures also recorded below normal at many places over North, Northwest and Central parts of India.
Crude palm Oil on MCX settled up by 0.51% at 591.5 on increasing demand. However upside seen limited on the expectation of higher supply from Malaysia and Indonesia. Indonesia's crude palm oil (CPO) output likely fell slightly in December, ending a seven-month run of gains, a survey showed. CPO production in the South-East Asian nation likely eased to 3.22 million tonnes in December from 3.31 million tonnes in November, according to the median estimate in a survey of three industry associations and a state palm research firm. Malaysia's palm oil output may rise by 12% this year to 19.4 million tonnes from 17.4 million tonnes in 2016 while exports may rise 11.2% to 17.85 million tonnes from 16.05 million tonnes in 2016, Malaysian Palm Oil Board said.
Ref. Soyaoil prices traded in range tracking weakness in spot demand and overseas prices on demand worries from the US. Demand from end-consumers continues to remain as per requirement due to which uplifting from traders and stockiest is sluggish. Moreover, supplies of domestic soyoil are adequate on the back of bumper soybean production last season. Moreover, the expectation of higher output during the current rabi season have also dragged the prices. Last week, the Solvent Extractors' Association of India (SEA) has raised its estimate for soybean output to 11 million tonnes in 2016-17 (Jul-Jun) from its previous forecast of 10.6 million tonnes.
Soyabean on NCDEX settled down by -0.77% at 3098 on the expectation of higher supply in the global market. US farmers are expected to plant 90.5 million acres of soybeans this spring, topping the record high set last year by about 7 million acres. Arrivals were marginally higher to 415,000 bags. With the sharp rise in domestic soy meal prices fresh exports are not seen forthcoming. Moreover, the decline in production in Argentina is likely to get offset by a bigger production forecast in Brazil. The country is likely to export over 2 million tonnes of soymeal during the 2016-17 (Oct-Sept) marketing year due to bumper domestic harvest and a rise in prices in global markets, Solvent Extractors' Association of India President said.
Mentha oil on MCX settled up by 0.5% at 1009.2 amid pick-up in demand at domestic spot market. Further, tight supplies from major producing belts of Chandausi in Uttar Pradesh, too fuelled the uptrend. However upside seen limited on the speculation the area under cultivation can incerese this year resulting good production. Total production of mentha oil during the current season is 32,000-34,000 tonnes against preliminary estimates of around 40,000 tonnes. Unfavourable weather conditions during harvesting period led to the drop in production. On the demand side, the seasonal demand emerges during winter season, especially from the pharma sector. Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year.
Aluminium prices ended with small gains continuing its firm trend buoyed by dollar weakness. Chinese economic growth of 6.8 percent in the last quarter of 2016 will support sentiment, but also note that investment and industrial production data for December indicate slower demand growth. The supply would inevitably rise because many emerging markets producers were looking to produce at near record levels despite high stock piles. Aluminium has been neglected for so long and with copper and other metals going up, there is no reason why aluminium should do some catching up. The latest report published by the World Bureau of Metal Statistics (WBMS) indicates that global primary aluminum market has recorded a marginal deficit during the initial eleven months of 2016.
Nickel on MCX settled up 0.9% at 664.60 gained tracking firmness from LME Nickel which ended the day up 0.2 percent at $9,715 a tonne, recovering some lost ground after falling more than 7 percent last week after Indonesia lifted a longstanding export ban on bauxite and nickel ore. However, it remains one of the worst performing base metals so far this year. Nickel prices rose on dollar weakness and hopes that U. S. President Donald Trump's incoming administration would make good on a pledge to boost infrastructure spending in the world's largest economy. In his inauguration speech on Friday, Trump said his administration would "build new roads, and highways, and bridges, and airports, and tunnels, and railways all across our wonderful nation".
Zinc on MCX settled up 1.39% at 189.65 risen as trader shorts cover positions ahead of the Chinese New Year, which begins at the end of this week. Also prices got support as metal was in deficit over the first 11 months of last year with total reported inventories declining over the same time frame. Meanwhile the ILZSG revealed a significant increase in Chinese output while the world’s zinc mine production fell overall by 1.2%. LME Zinc recently traded at $2,803 per tonne, up $36. Stocks and cancelled warrants were both 1,850 tonnes lower at 412,500 tonnes and 136,425 tonnes, respectively. With Donald Trump taking office, there are still no sign that the market is turning risk-off.
Copper on MCX settled up 0.89% at 398.25 as uncertainty over Trump's policies sent the dollar to a 1-1/2 month low while volumes were light ahead of the Chinese Lunar New Year that starts on Friday January 27, but with businesses activity likely to slow ahead of that. Copper prices can see resistance near to 402 level and prices can see downside pressure as sentiments changed after the update from The global world refined copper market showed a 48,000 tonnes surplus in October, compared with a 18,000 tonnes deficit in September, the ICSG said in its latest monthly bulletin. For the first 10 months of the year, the market was in a 64,000 tonnes deficit compared with a 89,000 tonnes deficit in the same period a year earlier, the ICSG said.
Natural gas on MCX settled down -0.72% at 220.20 while prices rebounded as support seen on low-level buying as prices were in oversold condition also support seen on the speculation that upcoming cold weather. According to natgasweather. com, a colder system will sweep across the central and eastern US late this week, ending the current mild spell as natural gas demand surges to near or slightly stronger than normal levels due to much of the US finally dropping below freezing besides the far southern US. Natural gas prices struggled near a two-week low on Monday, as forecasts showing warm weather receding in key regions in the U. S. during the next few weeks dampened demand for the heating fuel.
Crudeoil on MCX settled down -0.6% at 3616 as prospects of rising U. S. production weighed on the market. Pressure seen on prices despite efforts to trim global output by almost 1.8 million barrels per day (bpd) by OPEC and non-OPEC countries. Data released showed U. S. drillers added 29 rigs, the most in almost four years by the end of the previous week, taking the total count up to 551, the most since November 2015, according to Baker Hughes. U. S. oil production has risen by more than 6 percent since mid-2016, though it remains
Silver on MCX settled up 0.64% at 41692 on a weaker dollar and safe haven buying on uncertainties over U. S. policy after Donald Trump was sworn in as president. The U. S. dollar index dollar sold off amid disappointment that U. S. President Donald Trump’s inauguration speech on Friday proved light on detail over his plans for economic stimulus. Trump addressed U. S. manufacturing executives with a repeated promise to impose a border tax on firms that import products into the United States after moving American factories overseas and announced the country had abandoned the Trans-Pacific Partnership trade pact among a dozen nations. Trump's promises of tax cuts and higher federal spending continue to hold the market's attention, but details are sparse.
Gold on MCX settled up 0.62% at 28803 amid safe haven demand for the precious metal. Support also seen for bullion as protectionist signals from President Donald Trump’s administration unsettled financial markets and weakened the dollar, spurring demand for the metal as a haven. Gold investors have focused on two main views since Trump’s election in November: one seeing him as a wild card upending policy on everything from trade to alliances, and the other betting that he’ll boost U. S. growth, equities and the dollar. The administration’s opening days have been marked by protests, disputes about what constitutes a fact and assertions from Trump that he’ll put “America first.” Also Investors have started buying gold through exchange-traded funds again.
Cotton prices gained on strong demand from bulk consumers. Demand of the fibre has improved steeply in last few weeks as exporters are actively buying cotton to meet their export commitments which was made earlier during starting of the marketing year in October. Similarly, below average supply of cotton in current season also keeping demand higher at physical market. Brazilian cotton prices are likely to be firm in 2017 amid lower output of harvested cotton from the 2015-16 crop and lower ending stocks of the same crop.
Cardamom on MCX settled down -0.89% at 1543.7 as investors remained on the sidelines amid muted physical demand for cardamom in the domestic spot market. Exporters were active in the auction centres and where making heavy purchases. During the last weeks reporters have reportedly bought over 300 ton cardamom. Deficient rains have hit the cardamom crop badly in Kerala-the largest producing states. Even now plantations are facing moisture stress which may impact pickings. Total cardamom arrivals across Kerala in last week were around 410 MT against 333 MT arrived during last week, higher by 22.8%. Meanwhile, exports and domestic buying was lower at higher price levels.