DAILY AGRI COMMODITY REPORT 14 July 2016

Transcription

1 DAILY AGRI COMMODITY REPORT 14 July 2016 Our Presence Epic Research India 411 Milinda Manor (Suites ) 2 RNT Marg. Opp Central Mall Indore (M.P.) Hotline: Alternate: Or give us a missed call at HNI & NRI Sales Contact Australia Mintara Road, Tarneit, Victoria. Post Code 3029 Phone.: HNI & NRI Sales Contact USA 2117 Arbor Vista Dr. Charlotte (NC) Cell: Toll Free Number All queries should be directed to Info@epicresearch.co YOUR MINTVISORY Call us at

2 Market Views MONTH OPEN HIGH LOW CLOSE % CHG VOL MONTH OPEN HIGH LOW CLOSE % CHG VOL CORIANDER AUG CASTORSEED SUPPORT SUPP.1 SUPPORT SUPP Coriander short term trend is bearish and May continue in coming days. TURMERIC AUG GUARGUM OCT SUPPORT SUPP. 1 SUPPORT SUPP Turmeric short term trend is bearish and May continue in coming days Guargum short term trend is bearish and May continue in coming days. 2

3 Most Active Contract NCDEX INDIS TOP GAINERS SYMBOL EXPIRY DATE CURRENT PRI % Index Value Pre. Close % Change CASTORSEED GUAR GUM % CHANA GUAR SEED 10 MT % COTTON SEED OIL CAKE AKOLA RAPESEEDMUSTARD SEED % % CORIANDER GUARGUM TOP LOSERS JEERA SYMBOL EXPIRY DATE CURRENT PRI % MUSTARD SEED JEERA % SOYABEAN CHANA % TURMERIC

4 Commodities In News Spot turmeric prices increased at Erode markets on Wednesday due to fresh local demand. Turmeric growers brought a limited stock of 3,500 bags and 70 per cent of the stocks were sold. The finger variety gained 100 a quintal and all the 400 bags of local hybrid varieties were sold. In the Erode Turmeric Merchants Association sales yard, some bags of quality root variety fetched increased price and all such quality root variety turmeric bags were sold. At the Erode Turmeric Merchants Association, the finger turmeric was sold at 7,2899,069 a quintal and the root variety 7,0888,391. Of the arrival of 858 bags, 698 were sold. Guar gum futures traded higher by Rs 220 to Rs 6,670 per quintal today as speculators indulged in enlarging positions, driven by strong demand at the spot markets amid reports of lower plantings in growing regions. At the National Commodity and Derivatives Exchange, guar gum for delivery this month rose by another Rs 220, or 3.41 per cent, to Rs 6,670 per quintal, with an open interest of 2,254 lots. On similar lines, the mostactive delivery in farmonth October was trading higher by Rs 150, or 2.19 per cent, to Rs 7,000 per quintal, having an open interest of 48,657 lots. Market men attributed persistent rise in guar gum prices at futures trade to widening of positions by speculators, triggered by strong demand at the physical markets from consuming industries. Besides reports of lower acreage in growing regions due to deficient rains, too supported the up move, they added. India s cotton output is likely to decline 12.4 per cent to hit the lowest in five years for the current crop year (October 2015 September 2016), due to crop damage in major producing states. On Wednesday, the Cotton Advisory Board (CAB) under the Union ministry of textiles lowered the forecast it had made in February, saying the picture was now clearer. Output is now estimated at 33.8 million bales (a bale is 170 kg) for the current crop year, as against 38.6 mn bales the previous year (when drought had hit many states). ECONOMIC NEWS Sowing of kharif crops has gathered pace across the country amid good rainfall in July that has made up for the delayed onset of monsoon, raising hopes of higher growth in businesses dependent on the farm sector and lower dependence on imports for commodities such as cotton, maize and soybean. Good kharif sowing is essential to cool down the retail inflation, which increased 5.77 per cent in June against 5.76 per cent in May, mainly driven by food prices. Key crops such as cotton, pulses and soybean are entering the last stage of sowing for the current season, people familiar with the matter said. The actual sowing figures, especially of cotton, are likely to be higher than the official figures as the pace of sowing has quickened, they said. "Cotton sowing in the top cotton producing states of Gujarat and Maharashtra is going on briskly as spread of rainfall has been good for sowing," said Keshav Kranthi, director at the Central Cotton Research Institute in Nagpur. The domestic prices of ginned cotton increased significantly to about Rs 122 per kg in April from Rs 9092 a year ago. Nonetheless, the total area under cotton cultivation is expected to decline to 105 lakh hectares from 118 lakh hectares last year mainly due to lower returns on the fiber crop and high prices of pulses. On July 8, the total area was 19.9 lakh hectares less than that last year. In second largest producer Maharashtra, area under cotton on July 11 was per cent less than that a year ago. Experts said the increase in prices could drive farmers towards cotton in the days to come. The spurt in cotton prices is beyond expectations and points to a severe shortage of cotton in the domestic markets, said Anil Gupta, vice presidentcorporate sector ratings at ICRA. Slower cotton sowing and decline in cotton sown area, apart from cotton stocking by intermediaries, could have led to this sharp rise in prices, he said. "However, the recent increase in cotton prices can motivate the farmers further and the cotton sowing area can improve in the coming months," Gupta said. Cotton and soybean farmers from Maharashtra have substantially increased area under pulses, with highest increase of more than 35 per cent in area. 4

5 Technical Outlook BUY CORIANDER AUG ABOVE 7780 TARGET SL BELOW 7715 BUY GUARGUM OCT ABOVE 7120 TARGET SL BELOW 7060 SELL TURMERIC AUG BELOW 7890 TARGET SL ABOVE

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