WEEKLY AGRI REPORT-13 Oct To 18 Oct 2014
CHANA
Bullish trend is likely to continue in chana futures due to possibility of weak production in the current year coupled with limited kharif pulses supplies in local mandies. The market sources suggested that crop diversification by cultivators coupled with poor reservoir situation will reduce the chana acreage in the current year. Traders are expecting 10-15% decline in total acreage in the current year. The prices were also encouraged by limited kharif supplies in local mandies. As per the 1st Advance Estimates of Production of major Kharif crops for 2014-15 by the Department of Agriculture & Cooperation, the Kharif Pulses production is estimated at 5.20 million tonnes as against their production of 6.02 million tonnes during Kharif 2013-14. This is mainly due to poor sowing acreage in the current year.
JEERA
Not much selling was seen in jeera futures at lower levels due to receding supplies in both domestic and international market. The NCDEX futures settled flat today. As per market sources, receding supplies of jeera in both domestic and international market will encourage stockiest buying from lower levels. Traders stated that not many arrivals have been reported in international market due to limited supplies from Syria and Turkey. This will support the domestic jeera prices in the near term as international buyers will route towards Indian market for their seasonal demand. However, domestic traders have reported comfortable stock position in local mandies. The market sources suggested that heavy stocks of around 61 lakh bags in local mandies will easily cater any domestic and international demand. The total stocks in local mandies were almost double of the previous year’s level of 30 lakh bags due to record production in the last season.
SOYBEAN & SOY COMPLEX
Indian oilseeds and soyoil futures dropped in line with the benchmark palm oil contract in Kuala Lumpur where the ringgit hovered around a three-week high. Malaysian palm oil fell as the ringgit rallied and following recent declines in competing edible oil and crude prices. India's overseas purchases of edible oil in the year starting November are set to surge to a record 13 million tonnes, as lower prices, a rising population and higher incomes boost consumption.Malaysian palm oil futures slipped to a one-week low on Friday, shaving off some gains made earlier this week as tumbling crude prices and disappointing export data stoked fears of weaker
appetite for palm. Palm typically tracks soy markets as they are both food and fuel substitutes.The total sown area as on 10th October, 2014 as per reports received from States, stands at 1026.60 lakh hectare as compared to 1049.47 lakh hectare at last year this time. As per latest release from Malaysian Palm Oil Board , Malaysias September crude palm oil output decreased 6.60% from August to 1.90 million metric tonnes. While September exports up by 13% to 1.60 million metric tonnes.The end-September palm oil stocks increased by 1.80% to 2.90 million tonnes.
CORIANDER
Selling intensified in coriander futures due to fragile export demand in local mandies along with comfortable supplies in local mandies. The market sources suggested that weak export demand of coriander in the current level due to record high prices in local mandies will encourage stockiest selling in local mandies. The spot traders mentioned that the total stocks of around 50 lakh bags of coriander have been reported in cold storages. The total daily supplies of coriander have also been increased from the level of 6-7 thousand bags to 8-9 thousand bags with the anticipation of strong sowing in the coming season. This will maintain bearish trend in
physical market.
Bullish trend is likely to continue in chana futures due to possibility of weak production in the current year coupled with limited kharif pulses supplies in local mandies. The market sources suggested that crop diversification by cultivators coupled with poor reservoir situation will reduce the chana acreage in the current year. Traders are expecting 10-15% decline in total acreage in the current year. The prices were also encouraged by limited kharif supplies in local mandies. As per the 1st Advance Estimates of Production of major Kharif crops for 2014-15 by the Department of Agriculture & Cooperation, the Kharif Pulses production is estimated at 5.20 million tonnes as against their production of 6.02 million tonnes during Kharif 2013-14. This is mainly due to poor sowing acreage in the current year.
JEERA
Not much selling was seen in jeera futures at lower levels due to receding supplies in both domestic and international market. The NCDEX futures settled flat today. As per market sources, receding supplies of jeera in both domestic and international market will encourage stockiest buying from lower levels. Traders stated that not many arrivals have been reported in international market due to limited supplies from Syria and Turkey. This will support the domestic jeera prices in the near term as international buyers will route towards Indian market for their seasonal demand. However, domestic traders have reported comfortable stock position in local mandies. The market sources suggested that heavy stocks of around 61 lakh bags in local mandies will easily cater any domestic and international demand. The total stocks in local mandies were almost double of the previous year’s level of 30 lakh bags due to record production in the last season.
SOYBEAN & SOY COMPLEX
Indian oilseeds and soyoil futures dropped in line with the benchmark palm oil contract in Kuala Lumpur where the ringgit hovered around a three-week high. Malaysian palm oil fell as the ringgit rallied and following recent declines in competing edible oil and crude prices. India's overseas purchases of edible oil in the year starting November are set to surge to a record 13 million tonnes, as lower prices, a rising population and higher incomes boost consumption.Malaysian palm oil futures slipped to a one-week low on Friday, shaving off some gains made earlier this week as tumbling crude prices and disappointing export data stoked fears of weaker
appetite for palm. Palm typically tracks soy markets as they are both food and fuel substitutes.The total sown area as on 10th October, 2014 as per reports received from States, stands at 1026.60 lakh hectare as compared to 1049.47 lakh hectare at last year this time. As per latest release from Malaysian Palm Oil Board , Malaysias September crude palm oil output decreased 6.60% from August to 1.90 million metric tonnes. While September exports up by 13% to 1.60 million metric tonnes.The end-September palm oil stocks increased by 1.80% to 2.90 million tonnes.
CORIANDER
Selling intensified in coriander futures due to fragile export demand in local mandies along with comfortable supplies in local mandies. The market sources suggested that weak export demand of coriander in the current level due to record high prices in local mandies will encourage stockiest selling in local mandies. The spot traders mentioned that the total stocks of around 50 lakh bags of coriander have been reported in cold storages. The total daily supplies of coriander have also been increased from the level of 6-7 thousand bags to 8-9 thousand bags with the anticipation of strong sowing in the coming season. This will maintain bearish trend in
physical market.
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