Cotton on MCX settled up by 0.05% at 20780 on increasing arrivals in local mandis and on profit booking. Daily arrivals in the last week held around 180,000 bales slightly higher than the previous week's average arrivals. In addition to that, reports of cancellation of export order also kept cotton prices down. Indian cotton exporters have cancelled orders for around 25,000 bales and postponed shipments of about 200,000 bales by up to a month after a supply shortage pushed up local prices. India's cotton arrivals declined 5.61% in until Feb 10 as farmers are withholding stocks in anticipation of higher prices later though output is projected higher, said a senior official of Cotton Corporation of India (CCI).
Cardamom on MCX settled up by 1.42% at 1506.6 on good buying support amid a squeeze in supplies. Harvesting is nearly complete and hence arrivals are unlikely to pick up. Exporters and north Indian dealers have slowed down because of the higher prices. Exports of small cardamom during April-September 2016 have dropped by 20 per cent in volume and 22 per cent in value realisation from that of the same period the last fiscal. Shipments during the first six months of the current financial year stood at 1,625 tonnes valued at Rs. 139.25 crore against 2,026 tonnes valued at Rs. 179.32 crore in the corresponding period in 2015-16, according to Spices Board sources.
Jeera on NCDEX settled down by -1.37% at 16860 on weak demand as new season jeera arrived in market. Trading sentiments weakened further due to adequate stocks availability in the physical market on account of higher supply from the producing belts. However, good overseas demand is seen supporting prices at lower levels. Jeera exports in India are likely to rise 22% to 120,000 tonnes in 2016-17 (Apr-Mar), compared with shipments of 98,700 tonnes a year ago, because of robust demand from overseas market and negligible stocks in other exporting nations. New jeera crop started arriving in the key spot market of Unjha in Gujarat.
Turmeric on NCDEX settled up by 0.41% at 6832 driven by firm trend in the spot markets. However, gains remained capped on expectations of increasing production in coming harvesting season and lowering export demand in recent months. Turmeric acreage in Telangana and Andhra Pradesh was higher this year as compared last year. The harvesting is going on in key producing states – Maharashtra, Tamilnadu and Karnataka. On the export front, country exported about 74,524 tonnes, up by 32% during April-Nov period compared last year exports of 56,471 tonnes, as per government data. In Sangli (Maharashtra), new Turmeric crop coming to the market with small quantity around 450 bags (1 bag = 70kgs), for new crop price quoted in a range of Rs. 6800 - Rs. 8000/qtl depends on quality and variety.
Mustard Seed on NCDEX settled down by -0.65% at 3793 on expectation of higher supply. President of MOPA said mustard that carry over stock as of Feb 1 is pegged at 400,000 ton. The upcoming mustard crop is in very good condition so the production of mustard this year is likely to be in the range of 6.5-7 million tons. With the expectation of good crop in 2016/17, the new season supplies will be at higher size in the country. In addition to that the carryover stocks from last year might be higher as country imported record mustard oil and exported multiyear low mustard meal. However, the prices will get some support from the increase in minimum support price (MSP) of Rapeseed & Mustard to Rs. 3,700 per quintal for 2016/17 from Rs. 3,350 per quintal last year.
Crude palm Oil on MCX settled down by -1.21% at 571 tracking weakness in spot demand on profit booking. However, sharp fall in the prices will be cushioned by supply worries next week. Malaysia palm oil exports during Feb 1-10 fell 3% compared to a month earlier on weak demand from Middle East, data showed. Malaysia palm oil exports fell to 340,947 tons during Feb 1-10 compared to 351,907 tons for the same period a month ago, DowJones reported citing data from Intertek, a private surveyor. Indonesia Palm and kernel production fell 3% to 34.5 million tons in 2016 from a year earlier, Indonesian Palm Oil Association GAPKI, says in a statement. CPO output dropped by 3% to 31.5 million tons in 2016 on yearly basis, Gapki said.
Ref. Soyaoil on NCDEX settled down by -1.18% at 684.8 tracking weakness in spot demand on higher supply. Moreover, expectation of higher output during the current rabi season were also dragged the prices. Last week, the Solvent Extractors' Association of India (SEA) has raised its estimate for soybean output to 11 million tons in 2016-17 (Jul-Jun) from its previous forecast of 10.6 million tonnes. USDA Feb estimate kept the ending stock of US tad higher at 760,000 tons compared to 750,000 tons. Export of soyameal and its value-added products have recorded a staggering growth of 446.38 per cent this year, according to the Soyabean Processors Association of India (SOPA). Exports during January were pegged at 1,55,164 tonnes compared to 22,398 tonnes in January 2016.
Soyabean on NCDEX settled down by -1.08% at 3026 tracking weakness in spot demand in anticipation of higher supply. However downside seen limited on higher soymeal demand hope as Indian meal prices are competitive in the export market. In addition to its demand of soymeal by poultry feed manufacturers has revived due to increased price of broiler chicken in retail market. In near term farmer may sell soybean in large quantities as they are not getting desirable prices after holding it for four months and also they will harvest the rabi crops whose prices are also less due to which they will sell more soybean and hold rabi crops for one or two months.
Mentha oil on MCX settled up by 1.7% at 1044.9 on the back of rising demand at the spot market. Besides, tight stocks position following restricted arrivals from major producing belts of Uttar Pradesh also extended support to mentha oil prices. However upside seen limited on the speculation the area under cultivation can increase 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.
Aluminium on MCX settled up 0.16% at 125.05 after update China is considering forcing aluminium producers to cut more output. China is a top producer of aluminum, and its ongoing battle against pollution could lead to production cuts and, subsequently, skyrocketing aluminum prices. According to a recent report, the aluminum price rally could also potentially be offset by the oversupply situation. Any kind of extreme market fluctuation would be dependent on the Chinese government following through on the shutdown of aluminum-rich provinces during the winter months.
Nickel on MCX settled up 0.52% at 714.50 on short-covering as support seen after the update that supply deficit last year of 209,000 metric tons, according to Bloomberg, and is projected to remain in deficit this year to the tune of 188,000 mt. Deficit or not, the market does not seem to be in short supply yet. Between Indonesia and the Philippines the two countries produced about 700,000 metric tons of nickel a year in 2014 and 2015, with about 170,000 mt of that coming from Indonesia due to the export ban. The Philippines has just ordered the closure of 21 mines and the suspension of another six. The island chain is a source of around half of the country’s nickel output.
Zinc on MCX settled down -0.46% at 195.50 tracking weakness from LME zinc closed down 0.3 percent at $2,916 a tonne as stronger dollar gains across the metals sector led rises in markets. The base metals remain well placed to push after with their advances and the stronger Chinese trade data, combined with bullishness over Trump’s likely tax reforms, may well add fuel to the rallies that have in recent weeks continued to meet resistance at the higher numbers. The stronger dollar may act as a headwind, but given the renewed bullish undertone prices may be able to forge ahead regardless. Zinc prices hit their highest in 2-1/2 months on last Friday as investors piled into risky assets after U. S.
Copper on MCX settled up 0.8% at 411.40 edged to a fresh 20-month high as a strike at the world's largest copper mine and the threat of supply disruptions at an Indonesia mine stoked supply worries. Meanwhile Copper prices dropped from the day's high as the supply concerns were outweighing a slightly stronger dollar as gains across the metals sector led rises in markets. Last week, talks between management and workers at the Escondida mine in the Atacama Desert of northern Chile broke down, and workers have been striking since Thursday. On Friday, BHP Billiton Ltd., the majority-owner of the mine, said it would not be able to fulfill contracts for copper deliveries or shipments as a result of the strike, according to a spokesman.
Naturalgas on MCX settled down -2.69% at 198.60 dropped in the line of expectation fell sharply on Monday, hitting the lowest level since November as forecasts continued to call for mostly warmer-than-normal weather in key regions across the U. S. for the rest of the winter. Mild weather across the US continues to weigh on natural gas prices. According to natgasweather. com, while there will be a weather system and associated cold blast over the Northeast today, with also a second system over the Southwest into Texas with areas of rain and snow, the rest of the country will be quite mild for mid-February. As a result, natural gas demand will be lighter than normal overall when considered nationally, even with these weather systems.
Crudeoil on MCX settled down -1.77% at 3545 in response to growing evidence that U. S. production is rising and as some investors unwound positions ahead of OPEC's first report on compliance with its deal to cut production. OPEC’s January oil production fell by 890,000 barrels a day compared with December, the cartel said Monday, confirming that its members have so far largely complied with an agreement to slash output. Data from secondary sources showed that the cuts agreed on Nov. 30 by the Organization of the Petroleum Exporting Countries have been implemented. Production from OPEC members in January was 32.139 million barrels a day compared with 33.29 million b/d in December.
Silver traded in range as recent actions by U. S. President Donald Trump helped soothe investor worries about uncertainty surrounding the new administration’s controversial policies. U. S. economic data has stoked talk that the Federal Reserve would press ahead with U. S. interest rate hikes sooner rather than later. U. S. import prices rose more than expected in January, while initial jobless claims dropped unexpectedly last week to the lowest in nearly 43 years. U. S. consumer sentiment eased off a 13-year high in early February likely as some of the jubilation over Donald Trump's election victory ebbed, but it remained strong enough to suggest that consumers will continue to drive the economy.
Gold on MCX settled down -0.52% at 29021 as the dollar rose and equities climbed, but political and economic uncertainty in the United States and in Europe due to elections is expected to continue to give underlying support for now. U. S. economic data has stoked talk that the Federal Reserve would press ahead with U. S. interest rate hikes sooner rather than later. U. S. import prices rose more than expected in January, while initial jobless claims dropped unexpectedly last week to the lowest in nearly 43 years. The dollar hit a two-week high against the yen as investors focused again on the U. S. reflation trade which dominated the aftermath of Donald Trump's election as U. S. President in November, but has stalled this year.
Cotton on MCX settled up by 0.05% at 20610 due to lower level buying by the market participants. Market is currently quiet as supplies are tight and the demand is steady which has led to fluctuation in the prices of cotton. The cotton arrivals in the physical markets have seen improving during last week compared to previous weeks but still the normal arrivals have not seen Gujarat and Maharashtra this season. As on Feb 06, 2017 about 167 lakh bales of cotton have arrived in the domestic market. Maharashtra is leading the arrivals figures at 45.4 lakh bales followed by Gujarat at 38.6 lakh bales. In Dec 2016, India exported about 60,850 tonnes cotton to China, up 89% yoy. China imported highest cotton from India than from any other country in the month of December 2016.
Cardamom on MCX settled down by -0.72% at 1494.4 on profit booking after prices were supported recently due to a squeeze in supplies. Arrivals continued to show a declining trend as the harvesting season was almost over and this phenomenon could be attributed to the current rise in prices. The protracted dry spell with high temperatures at this time of the season in Kerala’s Idukki district, the main cardamom growing region in the country, is responsible for the fall in supply and the consequent upward trend in the prices. Water resources for irrigating the plants have almost dried up. In several estates, where irrigation facilities do not exist, the plants have started to wither. Exporters were covering and bought an estimated 50 tonnes of exportable variety last week.
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