Cotton on MCX settled up by 0.7% at 20160 tracking firmness in spot demand and lower arrivals in local mandis. Total of 12.45 million bales have arrived until Jan 17 during the 2016-17 marketing season, this is 7.1% below the arrivals in the same period last year, the data published by Cotton Corporation of India (CCI) said. Meanwhile, The National Tariff Commission (NTC) of Pakistan has imposed variable counter regulatory duty on import of fine yarn from India, which was previously subsidised. In the 2016-17 cotton marketing year, US cotton exports are likely to increase by 35 per cent. US market share of world cotton trade is forecast to increase as exports have increased 66 per cent year on year in the first five months of the current marketing year.
Cardamom on MCX settled up by 0.14% at 1557.5 due to tight stocks amid sustained demand from exporters. Cardamom prices are expected to trade higher during the coming week tracking expected fall in arrivals and concern over standing crop. Exporters continued to buy cardamom from the markets hoping to get fresh orders due to India's competitive prices in global markets amid lower supplies from Guatemala-the other producer. Supply scenario is expected to improve this week. But, the main problem persistently affecting the trade is that only a third of the participants is still active at the auctions and in the open market trading. Harvesting trend is any indication, the total output during the current season might come to around 40 per cent of the previous crop.
Maize on NCDEX settled up by 0.21% at 1446 amid firmness in spot demand and overseas prices. In India, maize has been sown in around 14.72 lakh hectares which is higher than 13.46 lakh hectare covered during corresponding period last year. In Maharashtra, it has been sown in around 2.41 lakh hectares which are higher than 2.10 lakh hectare covered during corresponding period last year. In Bihar also, it has been sown in around 4.47 lakh hectares which is higher than 4.36 lakh hectare covered during corresponding period last year. The area under the rabi maize crop across the country was at 1.01 mln ha up 6.4% from a year ago, according to data released by the farm ministry. A year ago, farmers had sown maize across 953,600 ha.
Jeera on NCDEX settled down by -0.29% at 17485 on reports of good climatic conditions and hopes of higher yield in the season crop. Pressure also seen amid expectation of increase in Jeera area in Gujarat state mainly in Saurashtra and Kutch zone current year. India imported around 2,550 ton jeera during Apr-Oct as against negligible in the previous year. India's jeera exports are likely to rise 30% to 88,000 ton during Apr-Dec, because of robust demand from overseas market and negligible stocks in other exporting nations. Sowing has been good so far and weather conditions are also favorable for jeera crop. As all is going well as exporters are not buying in large quantities but are waiting for the new crop.
Turmeric on NCDEX settled up by 0.74% at 6852 supported by surging domestic as well as exports demand in the spot market. However upside was limited on reports of higher output and scattered commencement of crop supplies in the producing centres of Erode, Nizamabad, Duggirala and other places. 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. Turmeric crop reported well in Maharashtra state expected better production compared to last year.
Mustard Seed on NCDEX settled down by -0.18% at 3935 on profit booking and on expectation of higher supply. The rains which are expected during the coming days would be favourable for the mustard crop as the crop requires moisture during this stage. The favourable climatic conditions this year have raised hopes of a bumper mustard crop in 2016-17, if there is no adversity reported in coming months. Mustard sowing is completed on 6.953 million hectare as compared to 6.276 million hectare, higher by 10.8%. Congenial sowing conditions and higher prices forced farmers to take buoyant sowing of Mustard in Rajasthan, Madhya Pradesh and Uttar Pradesh. Mustard sowing in Uttar Pradesh has crossed normal acreage of the season.
Crude palm Oil on MCX settled down by -0.37% at 593.1 on profit booking after prices gained on demand hope following robust Malaysia palm oil export data and on supply worries from Malaysia, the world's second biggest oil producer. Malaysia palm oil exports during Jan 1-15 climbed 7% compared to a month earlier on strong demand from Middle East, data showed. Malaysia palm oil exports jumped to 513,762 tons during Jan 1-15 compared to
Ref. Soyaoil on NCDEX settled down by -0.2% at 725.15 tracking weakness in spot demand and overseas prices amid expectation of higher supply. According to USDA weekly export sales report, net sales of 7,300 tons for 2016 -17 down by 77% from the previous week and 72% from the prior 4-week average. As per WASDE report, around 10.16 million tons is the estimated production figure for 2016-17 which is up by 0.5% on month while the ending stock is estimated to be around 750,000 million tons which was 700,000 tons in Dec-16. According to National Oilseed Processors Association (NOPA), U. S. December soybean crush fell marginally to 160.176 million bushels from 160.752 million bushels in November. Crush of soybean in December 2015 was 157.711 million bushels. Production of soy oil in U. S.
Soyabean on NCDEX settled down by -0.47% at 3159 tracking weakness in spot demand despite of overseas gains on concerns that floods could crimp output in Argentina. Downside also seen limited on increasing soymeal export prospects and on supply worries from the United States. Arrivals were marginally higher to 415,000 bags. With sharp rise in domestic soy meal prices fresh exports are not seen forthcoming. Further from the fundamental front earlier soybean production estimation by various government and private agencies were around 10 million tons however looking at the arrivals pace and heavy winter in North and central parts of India indicates the arrivals of new supply may be tight.
Mentha oil on MCX settled up by 0.56% at 1027.7 amid uptick in physical demand for mentha oil in the domestic spot market. Further, tight stocks position on restricted supplies from major producing belts of Chandausi in Uttar Pradesh, too supported mentha oil prices. Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year. This implies that export demand for the complete financial year can be between 27000 and 29000 MT quite cheaper, versus 23000 of total exports last year. Farmers are keeping most of the stocks in their hands. Most buyers are willing to buy at these levels. Since farmers are keeping most of stocks, thus whenever requirement arises, industry people will be purchasing from the farmers.
Aluminium on MCX settled up 0.28% at 124.30 settled flat up as support seen with investors exercising caution ahead of a slew of Chinese economic data and U.S. President-elect Donald Trump's inauguration. While LME aluminium fell by nearly 1 percent to $1,816.50 a tonne after reaching its highest since May 2015 overnight. Ahead of Trump's inauguration, Federal Reserve Chair Janet Yellen said the U.S. central bank should continue to raise interest rates slowly to keep jobs plentiful and inflation low, with monetary policy still modestly accommodative. While Aluminium prices had rallied sharply in last 1month period but now seems to be capped as sentiments can change as Alcoa said it has reached a deal with Australia's government to restart lost production at its Portland aluminum smelter.
Nickel on MCX settled down -2.87% at 673.20 surrendering all gains in the previous sessions, but weak fundamentals should not be the only one reason behind the big decline. It is Indonesia’s decision to ease its export ban that serves the main culprit for the decline. Indonesia finally introduced new rules on January 12 that the country will allow exports of nickel ore under certain conditions. It was heard since September 2016 that the country proposed to revise its ban. In accordance with the new regulations, nickel miners should dedicate 30 percent of their smelter capacity to process low-grade ore, and the remaining low-grade ore will be allowed to be exported.
Zinc on MCX settled down -0.66% at 187.10 amid economic uncertainty with investors exercising caution ahead of a slew of Chinese economic data and U.S. President-elect Donald Trump's inauguration. Talk of supply issues underpinned – Yunnan Chihong announced earlier this week that it will cut some lead and zinc smelting output due to the low treatment charges for concentrate. Treatment charges continue to fall, forcing the closure of smelters in China. Any delay to the restart of 500,000 tpy of capacity that Glencore closed last year could also exacerbate the tightness in zinc and send prices higher. China's average new home prices surged 12.4 percent in 2016, but gains have moderated in recent months.
Copper on MCX settled down -0.28% at 392.85 amid concerns over U.S.-China trade friction and the U.K.’s plans to leave the European Union. U.K. Prime Minister Theresa May offered her most explicit vision of Britain’s future relationship with its EU neighbors, pledging to quit the single market. Still, investors are bullish after a week of mostly positive Chinese data and possible supply disruptions at Chile’s Escondida mine. Chinese imports of unwrought copper and copper products rose 29% month-on-month to 490,000 tonnes in December, the highest level since March 2016. Still, year-on-year, imports were down 8%.
Naturalgas on MCX settled up by 2.22% at 230.50 recovered from the day's low turned higher as support seen after the US EIA reported that supplies of natural gas fell by 243bcf for the week ended Jan. 13. That was a higher than the decline of 238bcf expected by market players. Meanwhile, weather forecasts for the end of January turned warmer, which should dampen demand for the heating fuel. Weather models initially predicted colder temperatures throughout most parts of the U.S. during the period. Natural gas markets have been volatile in recent weeks, changing course rapidly in response to shifting outlooks in short-term weather patterns. Prices typically rise during the winter as colder weather sparks indoor-heating demand. About half of U.S. homes use natural gas for heating.
Crudeoil on MCX settled down -0.36% at 3558 after data showed that oil supplies in the U.S. registered an unexpected inventory build. In its monthly oil market report, the IEA said output cuts announced by the Organization of the Petroleum Exporting Countries and 11 non-OPEC producers in November had "entered their probation period". January 1 marked the official start of the deal agreed by OPEC and non-OPEC member countries such as Russia in November last year to reduce output by almost 1.8 million barrels per day to 32.5 million for the next six months. The deal, if carried out as planned, should reduce global supply by about 2%.A monitoring committee charged with tracking adherence to the global deal is due to meet in Vienna for the first time on January 22.
Silver on MCX settled down -1.73% at 41270 following pressure from strong U.S. economic data and support from Federal Reserve Chair Janet Yellen for higher U.S. interest rates. Federal Reserve Chair Janet Yellen said that running a "hot" economy for an extended period would be a risk. "I think that allowing the economy to run markedly and persistently "hot" would be risky and unwise," Yellen said in remarks prepared for delivery to the Stanford Institute for Economic Policy Research.
Gold on MCX settled down -0.91% at 28528 after Federal Reserve Chair Janet Yellen said the U.S. economy is strong enough to warrant higher interest rates. Better-than-expected jobs and housing data reinforced the view that the U.S. economy is sufficiently robust to warrant rate rises, turning back recent falls for the dollar and pushing 10-year bond yields to their highest since Jan. 3. One day before U.S. With monetary policy still modestly accommodative, the U.S. central bank should continue to raise interest rates slowly to keep jobs plentiful and inflation low, Federal Reserve Chair Janet Yellen said.
Cotton on MCX settled up by 0.35% at 20020 due to rising domestic as well as export demand in the spot market. Besides, expectation of lower production from major growing regions also fuelled the uptrend. Cotton acreage fell down to about 103 lakh hectares in 2016-17 from 116 lakh hectares in 2015-16, resulting in a drop of production to 351 lakh bales from 338 lakh bales during the period. In 2016 kharif season, all India cotton acreage was reported at 102.79 lakh hectares compared to116.41 lakh hectares during the previous season loosing around 20 per cent area to pulses. The Centre had also asked the farmers not to sow cotton in view of a very bad season in the previous year and some farmers kept away from cotton amid fear of poor performance of Bt Cotton.
Cardamom on MCX settled down by -0.89% at 1555.4 on profit booking after prices gained amid good export from exporters in view of hopes of higher export contracts. 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. Harvesting is almost over and hence the supply is unlikely to increase in the coming days. Buyers were active and were covering apprehending short supplies in the coming weeks. Exporters were also covering and they have bought and estimated 60-70 tonnes of exportable variety capsules last week.