Turmeric futures (Sept) is expected to trade in the range of 7600-7800 & the downside may remain capped. Arrivals are slow at present and mainly from farmers, as they are selling in panic due to decreasing rates in the spot as well as on futures. At the Erode Turmeric Merchants Association sales yard, the finger turmeric was sold at Rs.7,538-8,869 a quintal; the root variety at Rs.7,323-7,957.
The bull-run in cardamom futures (Sept) will possibly continue as it can test 1160 levels, supported by strong fundamentals. The demand is also expected to pick up further ahead of festival season in the country from next month. The cardamom auction average price for the first time after about five years has crossed the Rs.1,000 a kg mark as demand outstripped supply at all the auctions conducted during the week from Wednesday onwards, while the maximum price remained at above Rs.1,400 a kg. The only occasion when the auction average has crossed Rs.1,000 a kg mark previously was during the 2010-11 season.
Jeera futures (Sept) will possibly trade sideways in the range of 18000-18900 levels. Cumin seed declined by Rs 25-50/20kg in major trading centers of Unjha and Rajkot of Gujarat on Wednesday due to decreased demand. Only hand-to-mouth activity in the market is likely to persist and no major movement in prices expected.
Coriander futures (Sept) is expected to trade sideways in the range of 7800-8020 levels. Demand in the spot market is sluggish at present mainly due to higher supply of lower grade. Farmers are stockiest are releasing mostly their inferior stocks at lower prices, while holding premium quality stocks in the anticipation of better rates in the days to come.
Soybean futures (Oct) is expected to face resistance near 3540 levels & the upside may remain capped. Soybean outlook is seen dismal on low demand for soybean meal and expectation of better than expected crop due to increase in sowing area and favorable weather condition. Soybean acreage in the country was at 11.23 mln ha as of last Thursday, just a shade higher than 11.20 mln in the year-ago period. Soybean yield is seen around 1,300-1,400 kg per ha this year, almost double of 767 kg last year. On CBOT, Chicago soybeans slid for a second session on Friday as the market was weighed down by prospects of an all-time high U.S. crop. Good weather for crop development during July across broad swaths of the U.S. Midwest, the key growing area for soybeans, allowed crops to mature with relatively little stress.
Mustard futures (Sept) is likely to trade range bound within 4765-4865 levels. Mustard seed prices at the spot markets are largely pressured by slowing demand in mustard oil at higher level, coupled with big disparity in crushing. Further to it, the rival soybean is also showing signs of weakness on hopes of better than expected production due to high sowing area and favorable weather condition.
CPO futures (Sept) is expected to take support near 555-550 levels. Refined soy oil futures (Oct) is likely to witness an upside momentum & trade in the range of 665-675 levels. Refined soy oil uptrend continues in spot markets across the country on bullish global cues and improving domestic demand. Domestic demand is expected to improve ahead of festive season followed by low stock of palm oil at various ports in the country, which might trigger some demand shift to soy. Malaysian palm oil futures retreated from a 10-week high & declined 2.5 percent to hit 2,578 ringgit ($646) per tonne at the end of the trading day on Thursday, falling in a market correction and dragged down by a stronger ringgit.
Kapas futures (Apr) is expected to consolidate in the range of 940-955 levels. Cotton prices at the spot markets are declining at major markets across Central India on lackluster demand from mills. The discouraged market sentiment was due to mills opting to stay on the sidelines due to poor demand in yarn and prospects of better crop amid favorable weather in the country. Demand in yarn market is thin as prices remained unchanged from previous week, which has also weighed on market sentiments.
Mentha oil futures (Aug) may fall further towards 880 levels. The supply is abundant at the spot markets & demand is hand-to-mouth at present.
Guar seed (Oct) may trade in the range of 3620-3800 levels, while guar gum (Oct) will possibly trade in the range of 6480-6700 levels. Guar seed & guar gum traded weak amid muted local demand and sluggish business activities in major physical markets of Rajasthan on Wednesday. In Jodhpur market guar seed was priced at Rs 3650/100, Rs 50/100Kg down from previous session. Likewise, guar gum was offered at Rs 6550/100 kg, lower by Rs 100/100Kg.
Sugar futures (Oct) is likely to trade sideways in the range of 3550-3605 levels. On the international market, sugar futures rose on Thursday, buoyed by a broad-based advance in larger commodity markets linked partly to a softer U.S. dollar. Sugar has been range bound for the past week with solid support around the recent low of 19.50 cents a lb while the upside potential continued to be capped by ample nearby availability linked to the strong pace of the cane crush in Brazil. ICE October raw sugar settled up 0.3 cent, or 1.3 percent, at 19.98 cents per lb.
Courtesy: Smc Comtrade