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MARKET ROUNDUP
- Spices complex traded in red territory in Saturday's trading session. Cardamom extended its downward rally, ended more than 3 per cent down. Pepper and Jeera ended weak on Saturday as selling pressure built up in the complex.
IN FOCUS
- Indian pepper futures are also seen opening weak due to pressure from new arrivals. Losses will, however, be capped by good domestic demand. India's pepper output in 2010 is expected around last year's levels, but prices are unlikely to fall sharply in coming months due to low carry-over stocks.
- India's turmeric futures are likely to open higher supported by bargain-buying, but rising arrivals, hopes of higher output and weak exports may limit the gains. The April turmeric contract ended up 1.50 percent at 6,999 rupees per 100 kg in the previous session. The contract has fallen over 10 percent since a high of 7,834 on Jan. 4.
- Jeera exports in December 2009 dropped by 28 percent to 2,500 tonnes on year. Spot jeera fell by over 32 rupees to end at 12,281.25 rupees per 100 kg in Unjha, a major trading hub in Gujarat.
FUNDAMENTAL OUTLOOK
- We expect spices to witness some correction today. Jerra and Pepper in particular are expected to trade down, selling on rise is recommended.
GUAR, PULSES AND GRAINS COMPLEX
MARKET ROUNDUP
- Wheat futures ended steady on last trading session on talks of government actions towards curbing the prices of essential commodities. Guar complex extended losses in intraday trading on Friday weighed by weak international demand. Chana plunged by more than 2 per cent on profit booking.
IN FOCUS
- Chana arrivals are 7000-8000 bags at Delhi's Lawrence Road Mandi. The Spot price is expected to open at Rs.2275-2280/quintal same as previous day's trading session.
- Wheat acreage has gone up marginally to 277.58 lakh hectares by February 4 this year compared to last year's 275.87 lakh ha in the same period, just over two lakh hectares. The big drop in acreage, however, is evident in oilseeds acreage which is lesser by six lakh compared to the same time last year.
- For each degree rise in the temperature in the region, Punjab will lose 750 kg per hectare of wheat. This startling revelation emerged at the 13th Punjab Science Congress organised by Panjab University in collaboration with the Punjab Academy of Sciences to thrash out issues related to climate change.
- ElNino enhanced rains in December helped Kenya's maize farmers as country's coastal and southeastern regions will harvest a bumper maize crop from mid-February.
FUNDAMENTAL OUTLOOK
- Chana may trade up today; buying at every dips is recommended. Wheat is expected to trade in thin range. Outlook for Guar is bullish; buying at dips is recommended.
OIL AND OIL SEEDS COMPLEX
MARKET ROUNDUP
- Oilseed complex traded side-ways on Friday. Refined oil sharply erased it earlier losses to end positive on Saturday on fresh buying. Soybean too traded sideways to up on global cues. Cottonseed oil cake ended down weighed by lesser international demand.
IN FOCUS
- Import of crude edible oil to India saw a huge jump of 35% to a record 8.4 million tonne (mt) in 2009 crossing China for the first time in the last six years. India's edible oil imports comprise almost 80% of palm oil.
- American farmers will plant an estimated 10.1 million acres (4.1 million hectares) to cotton in 2010, up more than 10 percent from 2009, the annual survey of the U.S. National Cotton Council said Friday. The plantings would be up from 9.05 million planted by the U.S. to cotton in 2009, a 25-year low.
- Traders expect vast majority of U.S. soybean cargoes sold to top importer China to be shipped despite recent plunge in South American prices. China has about 5 million tonnes purchased but not yet shipped.
- The U.S. Agriculture Department monthly supply report next week could see changes in U.S. cotton exports for 2009/10 and possible reductions in world production, analysts said Friday. Total U.S. cotton export sales in the last four weeks hit a total of 1.969 million running bales (RBs, 500 lbs each).
- The big drop in acreage, however, is evident in oilseeds. Area under rapeseed/mustard, sunflower and groundnut has plummeted to only 88.92 lakh ha compared to 94.59 lakh ha. Key shortfall is in groundnut acreage for oilseeds while for pulses, the acreage is highest for chana (gram), up by almost six lakh hectares this year.
FUNDAMENTAL OUTLOOK
- We expect oilseed complex to trade up today taking cues from international market. Buying is recommended particularly in Refined oil and CPO.
08 February, 2010 by admin