Cotton on MCX settled down -1.96% at 19990 due to subdued demand from traders and stocksists at the spot market. Besides, cotton production will increase from 338 lakh bales in 2015-16 to 351 lakh bales this year owing to above normal rains and favourable agro-climatic conditions too fuelled the downtrend. The production of cotton is expected to touch around 345 lakh bales during 2016-17 as compared to around 338 lakh bales produced in 2015 -16 crop year. Cotton Association of India (CAI) expects that on account of better weather conditions across all cotton growing regions of the country there will be an improvement in productivity. Cotton production fell to about 386 lakh bales in 2014-15 which had earlier reached a record high of over four crore bales during the 2013-14 crop year.
Cardamom on MCX settled up 1.78% at 1495.5 in view of restricted supplies, exporters demand and weather woes in producing centres. Exporters are still in the market hoping good export business due to prevailing high prices in global markets and lower supplies from Guatemala-the other producer. Cardamom prices are likely to trade higher tracking expected fall in arrivals and concern over standing crop. Supply scenario is expected to improve this week. But, the main problem persistently affecting the trade is that only a third of the participants is still active at the auctions and in the open market trading. Harvesting trend is any indication, the total output during the current season might come to around 40 per cent of the previous crop. Exporters continued to stay active.
Maize prices settled flat as pressure seen from ample global supplies. In India, maize has been sown in around 13.95 lakh hectares which is higher than 12.87 lakh hectare covered during corresponding period last year. Total maize crop area could be around 15 lakh hectares for the Rabi season during 2016/17. Due to cash crunch in the market, farmers are bringing less stock in the market as traders are not able to pay the farmers. Traders are hoping for the situation to be under control soon but currently, market trades are badly affected. The area under the rabi maize crop across the country was at 1.01 mln ha up 6.4% from a year ago, according to data released by the farm ministry. A year ago, farmers had sown maize across 953,600 ha.
Jeera on NCDEX settled up 1.13% at 17400 due to rising domestic as well as export demand at the spot market. However, reports of good climatic conditions and hopes of higher yield in the season crop. Sowing has been good so far and weather conditions are also favorable for jeera crop. As all is going well as exporters are not buying in large quantities but are waiting for the new crop. However, looking at the current trend, buyers may not take a risk and initially demand will be low at the beginning of the new season. According to jeera exporters, while the new season is likely to start in March, farmers have gradually begun accepting payment digitally, and have therefore been able to ensure steady supply.
Turmeric prices gained on anticipation of rising physical as well as export demand at the spot market. However upside seen limited on higher turmeric output due to good sowing and favorable weather conditions at the producing belts. Turmeric output is seen higher at 7 million bags thanks to higher sowing and favorable weather conditions. Prevailing high prices encouraged farmers to plant more turmeric this year. Expectations of increasing production in coming harvesting season and lowering export demand in recent months are putting pressure on turmeric prices at higher levels. Turmeric acreage in Telangana and Andhra Pradesh was higher this year as compared last year.
Mustard seed dropped on profit booking and on expectation of higher supply. Mustard sowing is completed on 6.953 million hectare as compared to 6.276 million hectare, higher by 10.8%. Congenial sowing conditions and higher prices forced farmers to take buoyant sowing of Mustard in Rajasthan, Madhya Pradesh and Uttar Pradesh. Mustard sowing in Uttar Pradesh has crossed normal acreage of the season. Favourable weather conditions (cool and dry) during last month has led Mustard crop to be good to excellent conditions. Temperatures were reported below normal during last 7-8 days which will help in improving the crop conditions in turn on yields. Crop is in vegetative to flowering and pod formations.
CPO on MCX settled up 0.2% at 588.9 on demand hope and on supply worries. Prices of the oil were up after Malaysia palm oil exports during Jan 1-10 climbed 8% compared to a month earlier on strong demand from China and Middle East, data showed. Malaysia palm oil exports jumped to 351,907 tons during Jan 1-10 compared to 325,590 tons for the same period a month ago, DowJones reported citing data from Intertek, a private surveyor. Malaysia's CPO output for December month fell by 6.4% to 1.48 million tons compared to 1.57 million tons in November, data showed. India & Subcontinent's palm oil imports from Malaysia during first 25 days of the month climbed by 60.26% to 144,175 tons as compared to 89,960 tons in Nov 1-25. Malaysia and Indonesia raised export tax and weak demand.
Ref. Soya oil on NCDEX settled up 0.21% at 725.05 tracking firmness in spot demand and on robust demand in export market. According to USDA weekly export sales report, Net sales of 30,900 tons for 2016/2017 were up 64% from the previous week and 41% from the prior 4-week average. According to United States Department of Agriculture (USDA) January estimate, U. S 2016/17 ending stocks of soy oil is estimated to rise to 1,652 million lbs from
Soyabean on NCDEX settled up 0.82% at 3066 on supply worries from Argentina and on hope of higher demand from oil crushers. Soybean rose in anticipation of rise in demand from oil millers and crushing units amid rise in soymeal exports and on Argentina supply worries. As per Argentine agricultural ministry soybean production reported at 56 million tons down from 58.8 million tons in last season. Prices of the bean were also up on expectation of increasing export demand following robust data for December month. The United States department of agriculture (USDA) trimmed 2016-17 United States soybean production forecast for January also cut forecast for ending stockpiles compared to previous month, the department said in its World Agriculture Supply and Demand Estimates report.
Menthaoil on MCX settled up 1.02% at 1042.6 taking positive cues from spot market on rising demand. Besides, fall in supplies from major producing belts of Chandausi in Uttar Pradesh also added support to mentha oil prices uptrend. Sources mentioned that nearly 14500 MT of mint products were exported in six months of the current financial year. This implies that export demand for the complete financial year can be between 27000 and 29000 MT quite cheaper, versus 23000 of total exports last year. Farmers are keeping most of the stocks in their hands. Most buyers are willing to buy at these levels. Since farmers are keeping most of stocks, thus whenever requirement arises, industry people will be purchasing from the farmers.
Aluminium on MCX settled up 1.6% at 123.45 as prices were supported by expectations Chinese smelters would shut over the northern hemisphere winter. Beijing encourages plants to close to curb pollution and free up scarce coal supplies for heating. LME stocks were down a net 4,700 tonnes to 2,244,175 tonnes and cancelled warrants were at 642,500 tonnes, down 5,350 tonnes. Aluminium prices were further buoyed on Friday amid rumours that China is planning to cut electrolytic aluminium and aluminium oxides capacities in three of its provinces. Rumours suggest that China will remove 30% of electrolytic aluminium capacity as well as 50% of aluminium oxide capacity in three provinces: Henan, Shandong and Shanxi.
Nickel on MCX settled up 1.17% at 710 as prices recovered on short covering after prices slipped as major producer Indonesia eased a ban on ore exports, potentially offsetting lower supply from Philippines. Indonesia introduced new rules that will allow exports of nickel ore and bauxite and concentrates of other minerals under certain conditions in a sweeping policy shift by the big global supplier. The drop in prices had opened a window for Chinese traders to import, which cushioned losses. LME stocks stand at 370,866 tonnes – in the three years between 2006 and 2008, they averaged 28,856 tonnes.
Zinc on MCX settled up 1.72% at 189.3 on optimism about metals demand following strong economic data from top metals consumer China and the United States. Zinc’s fundamentals are strong and, while suspended capacity remains idle, the deficit is likely to draw down stocks of concentrates and refined metal. The fundamentals look more bullish – mine output shortages are leading to lower treatment charges, in turn causing some smelters to cut output in China. Growing demand will therefore require a greater drawdown in refined metal stocks. For now LME stocks are only drifting lower. Although there is idle mine capacity that can be reactivated to alleviate the supply deficit, there are few signs of this unfolding yet.
Copper on MCX settled up 0.83% at 405.25 as support seen after data showed top consumer China imported more of the metal last year. China shipped in a record 4.95 million tonnes of copper in 2016, up 2.9 percent from a year earlier, while December imports shot up almost 30 percent from the previous month, according to customs data released. China’s imports of unwrought copper and copper-fabricated products totalled 4.95 million tonnes in 2016, up 2.9% on the previous year, according to preliminary customs data showed. LME stocks were down 954 tonnes to 370,866 tonnes and cancelled warrants fell 1,200 tonnes to 132,864 tonnes.
Natural gas continued its firm trend after data showed that natural gas supplies in storage in the U.S. fell more than expected last week. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. declined by 151 billion cubic feet in the week ended January 6, exceeding market expectations for a drop of 144 billion cubic feet. That compared with a withdrawal of 49 billion cubic feet in the preceding week, 168 billion a year earlier and a five-year average drop of 167 billion cubic feet. Total natural gas in storage currently stands at 3.160 trillion cubic feet, according to the U.S. Energy Information Administration, 10.3% lower than levels at this time a year ago and around 0.1% below the five-year average for this time of year.
Crudeoil on MCX settled down -0.75% at 3586 on lingering doubts over the extent of OPEC cuts, with sentiment worsened by concerns over the health of the Chinese economy after it reported the steepest falls in exports since 2009. Record Chinese crude imports of 8.56 million barrels per day (bpd) in December helped to buoy prices somewhat, but they could not hide underlying fears over the overall health of the world's second-biggest economy. Despite China's oil thirst, overall exports -- the country's economic backbone -- declined by 7.7 percent last year in what was the second annual decline in a row and the worst since the depths of the global crisis in 2009.
Silver prices settled flat although ongoing U.S. political uncertainties continued to support demand for the safe-haven precious metal. Several Fed officials cautioned that Trump's fiscal and tax plans could spur a short-term economic boost that would result in longer-run inflation and debt problems, potentially raising demand for bullion as an inflation hedge. Federal Reserve Chair Janet Yellen said the U.S. economy is doing well and faces no serious obstacles in the short term, with the labor market looking strong. But the greenback was still under heavy pressure since U.S. President-elect Donald Trump failed to offer details on his promises to boost fiscal spending and cut taxes at a highly-anticipated news conference on Wednesday. St.
Gold prices settled flat as strong US retail sales drove the dollar and US bond yields higher, with the metal on track for a third straight weekly gain. The greenback and yields were initially higher on the back of strong U. S. retail sales, which reinforced the prospect of the Federal Reserve raising rates this year, perhaps sooner than previously expected. The gold price has risen 6.5 percent since a mid-December low and on Thursday reached its highest level since Nov. 23, after President-elect Donald Trump failed to elaborate on his plans to cut taxes and boost infrastructure spending. Investors were looking ahead to Trump's inauguration on Jan. 20, when they will again be looking for detail on his plans for the U. S. economy.
Cotton on MCX settled down by -0.1% at 20390 on profit booking after prices gained amid increasing prospects of higher imports and improved demand from bulk consumers. The production of cotton is expected to touch around 345 lakh bales during 2016-17 as compared to around 338 lakh bales produced in 2015-16 crop year. Cotton Association of India (CAI) expects that on account of better weather conditions across all cotton growing regions of the country there will be an improvement in productivity. Cotton production fell to about 386 lakh bales in 2014-15 which had earlier reached a record high of over four crore bales during the 2013-14 crop year. The production declined further during the 2015-16 crop year to around 338 lakh bales, the lowest during the last five years.
Cardamom on MCX settled up by 0.35% at 1469.3 in view of restricted supplies, exporters demand and weather woes in producing centres. Exporters are still in the market hoping good export business due to prevailing high prices in global markets and lower supplies from Guatemala-the other producer. Cardamom prices are likely to trade higher tracking expected fall in arrivals and concern over standing crop. Supply scenario is expected to improve this week. But, the main problem persistently affecting the trade is that only a third of the participants is still active at the auctions and in the open market trading. Harvesting trend is any indication, the total output during the current season might come to around 40 per cent of the previous crop. Exporters continued to stay active.