WEEKLY AGRI REPORT-25 Aug To 30 Aug 2014

Chana Sept. futures corrected on profit taking at higher levels. Prices gained earlier this week on festive demand and declining arrival pressure. Prices declined last week on improved kharif pulses sowing and good rains. Chana, or chickpea, futures fell on large local supplies amid lower-than-expected demand. Chana futures are expected to rise in the coming sessions on hopes of a pick-up in demand ahead of festivals. According to the Ministry of Agriculture,sowing of kharif pulses as on 14th August stands at 8.74 mn ha as against 9.55 mn ha last year.Sowing of Tur, Urad and Moong stands at 3.16 mn ha, 2.16 mn ha and 1.87 mn ha respectively. The 3rd Advance Estimates pegged total pulses output for 2013-14 at 19.6 mn tn, marginally lower from 19.8 mn tn earlier. There was a delay in the harvesting of the chana crop along with some crop damage in Madhya Pradesh, Rajasthan, Maharashtra and Andhra Pradesh. As per the Ministry of Agriculture, area under Rabi Pulses 2013-14 stood at 161.9 lakh ha as against 152.65 lakh ha last year. Chana sowing stood at 10.21 mn ha compared to 9.51 mn ha during the same period last year. Demand from the millers as well as festive buying may support the prices. However, higher deliveries, good rains in the chana growing belts and increase in the sowing of kharif pulses may cap the upside and keep prices under check.

Turmeric Sept futures recovered from lower levels on short coverings at lower levels. Prices have declined earlier this week on weak demand as well as higher sowing in Telangana. Huge carryover stocks also pressurized prices. Prices gained last week on reports of crop damage in Sangli due to heavy rains. Higher sowing in Telangana coupled with sluggish demand as well as huge carryover stocks may pressurize prices. However, crop damage in Sangli and overall lower acreage support prices at lower levels.

Jeera Sept futures traded on a negative note on sluggish demand from the overseas buyers. Record output and huge carryover stocks have also pressurized prices. Weak demand from coupled with comfortable supplies may keep prices under check. However, lower level demand may support prices at lower levels.

Refined soy oil Sept futures traded on a negative note tracking weak overseas soy oil prices. CBOT Soy oil traded on a negative note on weak demand and ample supplies. According to Oil World, Argentina’s biodiesel production may climb to a record 2.8 million tons this year from 2 million tons in 2013, with most output expected to be exported. While Argentina’s export sales of biodiesel from the beginning of the year till Aug. 13 was a record 1.65 million tons. According to NOPA, Soy oil stocks in May increased to 1.847 bn lbs from 1.97 bn lbs in May. As per the data released by the Solvent Extractors' Association of India Imports of vegetable oils, including non-edible oils in July increased 25% y-o-y to 1,109,674 tn. Crude Soy oil imports in July ’14 increased 30.43% to 306,068 tn compared to 234,650 tn last year.Stockpiles of edible oil at ports on Aug 1 stood at 570,000 tn, the trade body said, higher than 525,000 tn on July 1. Soybean futures declined on weak overseas markets, improved sowing, favorable climatic conditions and weak soy meal export. According to Ministry of Agriculture soybean planting as on 14th August is reported at 10.79 mn ha compared to 12.1 mn ha last year.Soybean prices remain under pressure owing to better crop conditions thereby boosting the outlook of a record crop harvest. The latest USDA Weekly export sales report released on Thursday showed noticeable decline in net sales to 89,600 MT while exports also declined by 36% to 93,400 MT from previous week. The USDA crop progress report showed 71% of the crop is in good or excellent conditions, up by 1% from previous week. Almost 95% of the soybean is in blooming stage and soybean setting pods is reported at 83%, up by 11% from last week.Prices may get support due to weak rains in the major soybean growing areas. As per SEAreport on soybean sowing as of August 14, sowing reached 107.77 lakh ha down by 11% from previous year at the same period. At MP sowing reached 56.59 Lakh ha and in Maharashtra 35.12 Lakh ha down by 11% and 9% respectively as compared to the corresponding period previous year.

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