Jeera likely to consolidate 16200-16800 range; Cardamom may witness downfall


Turmeric futures (Dec) may trade sideways & consolidate in the range of 6700-6950 levels. At present, the demand is bleak at the spot markets due to quality issue of yellow spices. However, any sharp downside may get restricted as the producers are reluctant to offload their produce at the current prices.

Cardamom futures (Dec) may witness a downfall towards 1290 levels. The second round of picking is under way and that might last for few more days. The second round is expected to start from December first week and may last till end of the month. Exporters stayed away from the market as the prices were ruling much above their affordable levels. Total arrivals during the season from August 01 up to November 12, 2016 were at 7,780 tonnes and sales were at 7,325 tonnes. The individual auction average for the season as on November 12, 2016 stood at Rs1,004.10 a kg. Last week auction average was at Rs1,404.29 as against Rs1,165.26 a kg the week before.

Jeera futures (Dec) will possibly consolidate in the range of 16200-16800 levels & the downside may remain capped supported by projection of lower supplies ahead. Very little cumin seed stocks are left in the major mandies, which is a positive factor for the commodity as new crop is expected to hit domestic market only by the month of March.

A sell on rise opportunity will continued to be seen in soybean futures (Dec) & it can test 2950 levels as fundamentals are weak for long term. In its revised crop projection for Kharif 2016, the Soybean Processors Association of India (SOPA) has put India’s soybean crop at 114.9 lakh tonnes (lt), about 5% higher than the initial crop estimate of 108.8 lt. The increase in output is attributed to lower damage and better yield mainly in Madhya Pradesh and Maharashtra. This year, the sowing area has remained almost stable at 109.7 lakh hectares and the yield is expected to be in the range of 968-1,102 kg/hectare. Production in the three major growing States is expected to be 57 lt in Madhya Pradesh, 39 lt in Maharashtra and 9 lt in Rajasthan. On CBOT, U.S soybean futures (Jan) rose 0.38 percent to $9.88 a bushel, having closed down 0.18 percent on Monday.

Mustard futures (Dec) may witness a consolidation in the range of 4500-4580 levels. At the spot markets, price of mustard oil is steady as demand is as per requirement. In near term, the supplies of mustard seed may drop in the spot markets, but will be sufficient to cater crushers demand.

Refined soy oil futures (Dec) is likely to trade in the range of 670-680 levels. CPO futures (Dec) will probably witness a consolidation in the range of 520-530 levels. Malaysian palm oil futures declined for a second straight session on Tuesday after weaker export data from a cargo surveyor prompted traders to sell. Palm price movements have been volatile in the two previous trading sessions.

Kapas futures (Apr) is expected to trade higher & can test 940-950 levels. Ginners were now purchasing cotton to replenish their drying inventories and good demand from spinning mills fuelled prices in major markets. Some spinning mills were buying to meet their immediate requirements. Supply remained sluggish as farmers were busy sowing other crops on their field and the on-going cash crunch led them to prioritize sowing over selling kapas to the ginners. On the other hand, some spinning mills were purchasing cotton to replenish inventories despite dull demand for yarn.

Cotton oil seed cake futures (Dec) is likely to trade in the range of 1960-2000 levels. The quality of cotton oilcake arriving in the market is good as it is containing less moisture and higher oil content. Cattle feed manufacturers have started bulk buying around Rs 1,900/100kg for their long term requirement. The demand for cotton oilcake is likely to increase in future as winter season is nearing and consumption is more during winter season.

Sugar futures (Dec) may face resistance near 3480 levels. The latest estimates by Govt. have highlighted that the domestic sugar consumption is estimated at about 25.52 MT, the stock position at the close of the 2016-17 season is likely to be at 4.73 MT, which will be carried forward for the next season. Apart from this, the various government measures are in place to maintain sufficient stocks in the country and keep the sugar prices under check.

Coutesy: Smc Comtrade


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