WEEKLY AGRI REPORT-20 Oct To 25 Oct 2014

Commodity Tips
Chana November futures dropped on profit taking at higher levels. Comfortable supplies of chana and imports of yellow peas added to the downside pressure. Prices gained over the last few sessions on festive demand and lower level buying. According to the Ministry of Agriculture, sowing of kharif pulses as on 9th October stands 6.2% lower at 10.23 mn ha as against 10.91 mn ha last year. Sowing of tur, urad and moong stands at 3.6 mn ha, 2.53 mn ha and 2.16 mn ha respectively. Chana October futures may trade on a mixed note. Festive demand and value buying may support prices. However, ample supplies coupled with huge stocks of chana, higher imports of yellow peas and better than expected kharif pulses sowing may keep prices under check.

Jeera or cumin seed, futures slipped on higher arrivals though export demand restricted the downside. Jeera November futures traded on a positive to bullish note on Tuesday on firm exports data and overseas demand. However, huge carryover stocks and weak domestic demand capped sharp gains in this week. Area under jeera in Gujarat was reported at 455,000 ha as against 335,200 ha last year while about 390,000 ha were sown in Rajasthan. For upcoming trade, Jeera futures are expected to trade higher as the demand is seen improving in major spot marketsAs per market source, local stockists are buying in huge quantities as jeera market in Unjha will remain closed from Oct 21 on account of Diwali and will resume operations only on Oct 29. According to data from the Spices Board of India, shipments of the second-largest exported spice rose 32 percent on year to 58000 tonnes during April-July. Added, geo- political tensions in Syria, one of the major exporters of the spice, have led to good demand for Indian jeera from the overseas markets.

Indian soybean futures rose on Friday as lower-than-expected supplies from the new season crop due to delayed sowing lifted prices. Soy oil futures, however, fell on higher imports of edible oils. Palm oil futures may end the year 2% above current levels due to lower output in second biggest producer Malaysia, but abundant supplies of rival oilseeds mean prices will still close down about 19% for the year. According to Ministry of Agriculture soybean planting as on 9th October is reported at 11.02 mn ha compared to 12.22 mn ha last year. CCEA has kept the MSP of soybean unchanged at Rs. 2500-2560/qtl.

Turmeric futures dipped for the second day on long liquidation on limited demand and strong arrivals in the ready market. The Turmeric India spot prices are traded at Rs 6180 per quintal, down Rs 110 on the day. Selling intensified in turmeric on strong arrivals in local mandies and limited demand in physical centers. However, traders mentioned that the sowing of new crop is still a major concern in states like Andhra Pradesh and Tamilandu due to delayed monsoon rainfall and poor price realization by cultivators. Similar trend is also observing in Maharashtra as not much sowing has been reported in Sangli. On the other side, stocks have depleted in local mandies with strong pace due to steady export demand.

Coriander futures are likely to trade range bound with a negative bias due to sluggish export demand along with sufficient supplies in major spot markets. As per market source, total stocks of around 50 lakh bags of coriander have been reported in cold storages. The government's third advance estimate pegged all India coriander output at 428000 tonnes in 2013-14 (Oct-Sep) as against 524000 tonnes last year. Exports of coriander during April-July 2014 have increased 40 percent to 16000 tonnes from 11412 tonnes a year ago, according to the data by the Spices Board of India. However, as per market source, higher prices and robust exports are likely to increase the acreage in the rabi season.

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