Mustardseed yesterday traded with the negative node and settled -0.03% down at 3295 as downside remained flat shrugging off arrivals of new crop rapeseed. Arrivals of rapeseed from the new crop in Rajasthan, the biggest producer of the oilseed in the country, are expected to pick up in the coming weeks. Oil industry in Madhya Pradesh appears to be divided over pricing of mustard oil. While a section of oil traders presume a bearish sentiment as arrival of mustard seeds in the State mandis will pick up in coming days.

Wheat yesterday traded with the positive node and settled 0.24% up at 1255 on some buying support but higher stocks with the government and increase in area under cultivation in the current winter sowing season limited the gains. Government agencies such as Food Corporation of India buys wheat from farmers at pre-agreed rates for distribution among poor at lower than market rates. India's Jan. 1 wheat stocks in the government warehouses stood at 25.7 million tonnes, more than three times the official target for the quarter ending March 31, government data showed.

Crude Palm oil yesterday traded with the positive node and settled 0.29% up at 518.7 as investors covered shorts and expectations of lower production growth in January supported bullish sentiment. Palm oil is down 6% so far this year. It may fall further in coming weeks as Malaysia's palm oil exports may continue to decline in February due the Malaysian government's delay in issuing tax-free export quotas. Shipment data by cargo surveyors Intertek Agri Services and SGS (Malaysia) Bhd.

Ref Soyaoil yesterday traded with the positive node and settled 0.27% up at 685 due to short covering tracking firmness in spot market demand. As per SEA of India, India imported 654,714 tons edible oil in Dec, down 21% from the month of Nov 2011. In the first 2 months of the current oil year (Nov- Dec), edible oil imports were at 14.82 lakh tons against 13.82 lakh tons a year ago. Beijing halted imports of oilmeals from India from Jan. 1 after it found a hazardous chemical in the product last year, an Indian trade body said last week, threatening about half of India's rapeseed exports.

Aluminium yesterday traded with the positive node and settled 0.09% up at 111.3 support by the gains in January manufacturing indexes of China, Europe and the US boosted market confidence and in turn dragged the US dollar index below 79 overnight, helping LME aluminum breaking through the 5-dma and closing USD 23/mt or 1.02% higher at USD 2,271/mt. LME aluminum prices have been volatile this week as the European debt crisis remains unsolved and US employments, which are expected to considerably trail estimate, may erode support from gains in PMI data of major economies.

Natural gas yesterday traded with the negative node and settled -4.7% down at 119.5 in the line of expectation as US over supply concerns and a mild winter continue to weigh on the heating fuel. Natural gas prices have dropped nearly 17% since Monday. Yesterday, prices booked the largest January loss in three years spiking down 7.8% on forecasts of continued mild winter weather and increased production levels signaled no end to the supply glut.

Jeera February contract dropped Rs 305 and settled at Rs 14440 per quintal due to expectations of higher production in 2012 on a rise in area under cultivation top producer Gujarat state. Production is expected to increase by 15-20 percent this year due to higher area and good weather. Traders expect fresh supplies from the new season crop to further weigh on prices. Jeera is cultivated during winter from October to December and harvesting starts from February. Latest sowing data from Gujarat indicates as on 27th Dec, sowing completed in ~2.82 lakh ha vs 2.38 lakh ha last year.

Turmeric yesterday we have seen that market has moved 1.51% as overseas demand for the new season crop outweighed fresh supplies and estimates of higher output. Buying is good from the overseas and local buyers. Fresh supplies have started coming in spot but it is not weighing on sentiment because of high moisture content. Supplies from the new season crop have started coming in the spot market in small quantities and are likely to improve in coming days. Turmeric cultivation in India usually starts by the end of May and continues until August and a lengthy harvesting season begins in January.

Chana gained Rs 48 and settled at Rs 3233 per quintal on buying by local traders, who expect lower harvest in the current season. The government data shows chana harvest could fall in Maharashtra, Karnataka and Rajasthan, and this is providing support to prices. Chana sowing has declined 4 percent in ongoing rabi (winter sowing) season to 8.9 million hectares as of Jan 27, government data showed. Lesser winter rain in key growing areas has impacted the yields and this could result in a decline in overall harvesting of the pulse.

Soyabean yesterday we have seen that market has moved 0.24% on short covering amid estimates of lower production in South America following a severe drought. Soybean prices in spot markets started declining from mid-week on rupee appreciation against the US dollar. Reports of ban on Indian oilmeal imports by China also adversely affected the Indian market. Across Madhya Pradesh, biggest soybean producing state in India, arrivals in the beginning of the week were 125,000 bags. Arrivals in Rajasthan and Maharashtra started the week with 80,000 and 40,000 bags respectively.

Menthaoil February contract dropped Rs 21.1 and settled at Rs 1577 on intraday profit booking though good demand from the International markets and the domestic pharmaceutical Industries was noted. Traders expect an overall Bullish trend to prevail in the markets as arrivals in the mandis remained moderately low. The trend is likely to remain volatile in the short term as the higher levels too have not been sustainable. But medium term sentiments look positive on an expected pick up in demand in coming weeks.

Pepper February delivery dropped Rs 175 and settled at Rs 29300/quintal on subdued export demand and on expectations fresh arrivals from the new season crop will improve in coming days. Supplies from the new season crop have started arriving in small quantities in southern Kerala and Karnataka states. Local supplies are expected to improve in coming days. New crop arrivals from Vietnam is also likely to start by Feb. end or March.

Guarseed yesterday we have seen that market has moved 3.24% on buying by exporters and traders expectation of further rise in prices. Government data shows guar gum export is growing at very good rate and is likely to keep prices firm for short term. Guar gum exports from India rose more than 75 percent to 348,000 tonnes from April to October 2011, the government data showed. The exports nearly doubled to 403,000 tonnes in the financial year ended in March 2011. Good demand from the U. S.

Nickel yesterday traded with the positive node and settled 0.31% up at 1042.7 tracking LME nickel which opened at USD 20,710/mt and closed at USD 21,039/mt overnight, up by USD 302/mt from a day earlier, with the highest price at USD 21,150 mt and the lowest price at USD 20,549/mt. China’s PMI for January was above 50, but market was less encouraged by the data and LME nickel prices still fluctuated during Asian trading hours. However, LME nickel prices advanced to certain extent and finally closed at USD 21,039/mt from positive PMI from Germany, the UK and the US.

Zinc yesterday traded with the positive node and settled 0.19% up at 104.7 yesterday LME zinc prices once dipped to USD 2,070/mt ahead of manufacturing PMI for major economies was better than expected, with European economic data showing the manufacturing activity is improving. Meanwhile, US economic data shows that the employees in US private sector grew steadily, and construction spending increased as well. As a result, LME zinc prices climbed gradually to above the 10dma, with prices finally closing at USD 2,117.5/mt, up USD 12.5/mt.

Copper yesterday traded with the positive node and settled 0.37% up at 418.7 regained strength after the release of data showing slowing contraction in euro zone mfg activity, while renewed optimism over talks between Greece and its bondholders provided further support. The euro zone’s PMI rose to 48.8 in Jan, compared to a preliminary reading of 48.7 and up from 46.9 in Dec. Germany PMI’s came in at 51.0, indicating expansion and above an earlier estimate of 50.9.

Crude oil once again dropped by -1.36% to settled at 4861 as data indicated that US supplies advanced more than expected and weaker than forecast US economic numbers. Crude prices fell from their highs on US supply data stating crude oil inventories climbed by 4.2mbls in the week ended Jan 27, beating expectations for a 3.0mbl increase. Total crude oil inventories stood at 338.9mbls as of last week, booking the highest level since the week ended Nov 4. Adding to the bearish oil environment, the ISM’s US mfg index climbed to 54.1 in January from 53.1 in Dec.

Silver prices rose by nearly 0.72% as surprisingly robust manufacturing figures out of the US, Europe and China sparked hopes that green shoots of recovery were sprouting in the global economy, which wetted an appetite for risk that sent the greenback falling and silver rising. The ISM’s U. S. mfg index jumped to 54.1 vs 53.1 in Dec, and while slightly below some market expectations, the figure did break even further away from the 50 mark, the boundary between economic growth and contraction.

Gold rallied to eight week highs to test 28577 in the morning session as the US dollar weakened on strong euro zone economic data and hopes for a Greek debt settlement but finally settled at 28419 as pressure on MCX seen after rupee firmness. Driving the dollar lower thus gold higher, the ISM’s mfg index climbed to 54.1 in January from 53.1 in December. 50 is the dividing line between economic growth and contraction. Manufacturing also increased in China with the official PMI growing to 50.5 in January from 50.3 in December, beating the consensus forecast for a sub 50 reading.

Mustardseed yesterday traded with the negative node and settled -0.63% down at 3289 on rising arrivals of rapeseed from the new crop in spot markets. Rapeseed arrivals from new crop are rising in north India. In coming weeks, supply of rapeseed oil will also rise as oil milers will start crushing of new crop. Arrivals of rapeseed from the new crop in Rajasthan, the biggest producer of the oilseed in the country, are expected to pick up in two weeks. The total arrivals of mustard seed decreased by 1000 bags at 73000 bags in major mandies.