Mustardseed yesterday traded with the negative node and settled -0.4% down at 3505 as on supply pressure from the new season crop. As per the market data, the total arrivals of mustard seed have reduced to 2.50-2.60 lakh bags in the last week , down almost 0.50-0.60 lakh bags from the earlier. This was on the account of restricted supplies by farmers at lower levels. The market data suggested that farmers are currently having the stocks of around 41 lakh tonnes , while almost 8 lakh tonnes are lying in the miller's warehouses.
Wheat yesterday traded with the positive node and settled 0.78% up at 1552 due to weak arrivals of wheat in local mandies along with strong demand of private millers at higher levels. As per the latest release from the Food Corporation of India (FCI) , the agency has procured around 24 million tonnes of wheat from all the producing states, down almost 17 % from the corresponding period last year the. This is mainly due to receding supplies in major producing areas. The total daily arrivals of wheat in major states such as Haryana and Punjab have reduced to 8000-10000 bags.
Crude Palm oil settled flat as gains were eventually capped by data showing a drop in exports. The palm oil gains were trimmed after cargo surveyor Intertek Testing Services reported a 9.4 percent decline in Malaysian palm shipments to 799,405 tonnes for the first 20 days of the month from the same period in April. Investors were hoping for palm oil exports to eat further into stocks, which fell below the 2-million tonne psychological mark in April to 1.83 million tonnes.
Ref soyaoil ended with small gains as gains were limited as sluggish demand outweighed gains in overseas markets. Weak soymeal exports are weighing on sentiments. India's soymeal exports in April sank 67 percent from a month earlier to 99,451 tonnes, dropping for a third straight month as farmers held back stocks in a move that tightened supply and boosted prices of the animal feed. As per the latest monsoon report, the date of monsoon onset is 3rd of June which means that it is likely to be delayed by 2 days.
Aluminium yesterday traded with the positive node and settled 0.25% up at 101.4 as US dollar index lost support at 84 overnight following seven straight days of gains, supporting prices to rebound. Total world aluminum production in April fell by 111,000 metric tons from the previous month to total 3.745 million tons, according to figures released Monday by the International Aluminum Institute. Charles Evans, president of the Federal Reserve Bank of Chicago, hinted last night his support for asset buying program, sending the US dollar index down sharply.
Natural gas yesterday traded with the positive node and settled 0.26% up at 226.6 boosted by a warmer-than-normal weather outlook that was expected to increase demand for the fuel. Updated weather forecasting models pointed to a wider swath of above-normal temperatures in the central U. S. in the next two weeks, boosting near-term cooling demand expectations. Demand for natural gas tends to rise in the summer months as warmer temperatures increase the need for gas-fired electricity to power air conditioning. U. S. supply levels also remained in focus. The U. S.
Jeera June contract dropped Rs 47.5 and settled at Rs 13077.5 per quintal due to estimates of higher output though export demand and a drop in local supplies limited the downside. Export demand is expected to improve in the coming weeks because of a lack of supplies from Syria and Turkey. Exports are yet to pick up strongly though traders are expecting that to happen in coming weeks. Traders are expecting that the total production of Jeera in the current year is expected to be around 34 -35 lakh bags, up 1 lakh bags from the last year.
Turmeric yesterday we have seen that market has moved -0.5% on weak stock position and weak production. However, prices dipped on weak demand amid arrivals from harvested crop. As per market sources, turmeric production in 2012-13 is expected around 50-60% lower compared to last year's historical high of 90 lakh bags. This is mainly due to fragile sowing in major producing states such as Andhra Pradesh and Maharashtra. Low demand prevailed in the mandis as Monsoon report remains critical for the near term trend.
Chana edged up due to improvement in demand in the physical market, although rising supplies from the new crop kept a lid on gains. The wedding season, when demand for chick peas goes up, has started and will last until July. Chana output is expected to be 8.49 million tonnes in 2012/13 as per the agriculture ministry's third advance estimate as against 7.70 million tonnes a year earlier. Chana arrivals have edged up towards their seasonal highs in Delhi. This has come as a welcome relief after a choppy trend in supplies during last week.
Soyabean yesterday we have seen that market has moved 0.6% on thin supplies and a weak rupee tracking firm pot demand. Soybean supplies are limited. Farmers are not selling the harvest. Oil mills are running operations at half of their capacity. Arrivals are not showing any improvement as farmers are probably busy in wedding season. Also, many are holding back their produce in anticipation of better prices. Buyers are not active due to low soy product demand but low supplies are supporting the price.
Menthaoil May contract gained Rs 37 and settled at Rs 962.4 on the back of rise in export demand and strong demand from the pharmaceutical industries amid expectation of lower arrivals in the spot markets. Prices have been falling continuously for the commodity due to low demand and prospects of better production this year. However traders also anticipate that prices have fallen significantly over last few months. New crop is delayed by 10-15 days, however mentha oil output may rise this year on higher crop. As per trade output may jump 20 percent to 55,000-60,000 tons during current year.
Nickel yesterday traded with the positive node and settled 1.53% up at 827.9 after the US dollar index surrendered earlier gains in response to Evan's comments. The comments by the Chicago Fed President Charles Evans hinted at the support of the existing asset purchase plan, suggesting the plan will continue throughout the summer, and may come to an end in the fall if the labor market continues to improve. Investors are now shifting attention to the testimony to Congress by Ben Bernanke and the latest meeting minutes of the interest rate meeting.
Zinc yesterday traded with the positive node and settled 0.74% up at 101.1 as with falling US dollar index, bargain hunters entered the market and supported prices. As the Chicago Fed's president Charles Evans noted in his speech that the employment market has seen improvement, but it remains uncertain whether the recovery will sustain, and the current inflation is well below the 2% target of the Federal Reserve. As the speech implied continuation of the easing policies, the US dollar index gave back Friday's gains, and non-US currencies rebound.
Copper yesterday traded with the positive node and settled 0.83% up at 409 as a supply disruption from a major mine outweighed worries about Beijing's efforts to cool Chinese property prices. Grasberg mine, remains closed, which will tighten copper supply and lend support to copper prices . Charles Evans, president of the Federal Reserve Bank of Chicago, hinted last night his support for asset buying program, sending the US dollar index down sharply.
Crude oil gained supported by positive economic data and strong equity markets, while a moderate outlook for demand and ample supplies limited the upside. Oil markets found some support from tension in the Middle East, which raised worries over the security of supply from the biggest producing region. The fundamental outlook for oil also looked less positive with a weaker demand growth for 2013 as well as higher supply, according to the West's energy watchdog, the International Energy Agency. Traders awaited the minutes of a U. S. Federal Reserve meeting due to be released on Wednes
Silver ended with 1.47% gains with traders citing a wave of pent-up short-covering tracking firmness in gold and other commodities. Amari's comments sparked demand for the yen that came at the dollar's expense and brought up gold prices in a quiet session with little in the way of economic indicators or other steering currents. The Bank of Japan has enacted massive monetary easing measures to steer the country away from deflationary decline and more towards growth, with the yen plunging to lows against the dollar not seen since 2008. Market talk of an unidentified investor selling off a big chun
Gold ended higher after Japan's economy minister warned that further depreciation of the yen could harm the country's economy. The Bank of Japan has enacted massive monetary easing measures to steer the country away from deflationary decline and more towards growth, with the yen plunging to lows against the dollar not seen since 2008. Gold prices dropped sharply early in the session as investors continued to sell the precious metal amid speculation over an earlier-than-expected end to the Federal Reserve's quantitative easing program.
Mustardseed yesterday traded with the negative node and settled -0.65% down at 3514 tracking weakness in spot demand after prices rose due to weak arrivals in local mandies. The Industry estimated 71.5 lakh tons of Mustard seed production this year. This will put pressure on the prices in near future. As per market sources, restricted supplies by farmers at lower levels along with strong supplies of wheat at higher rates might have reduced the total mustard seed arrivals in all the major producing states. The total daily arrivals of around 3.50-3.80 lakh bags were reported in local mandies, down almost 0.40-0.50 lakh bags from the last week.
Wheat yesterday traded with the negative node and settled -0.97% down at 1538 after a brief spell of buoyancy, as arrivals rise in the market due to the new season harvest. Also, fresh buying by flour mills to meet the festival and marriage season, supported the sentiment. As per the latest release from the Food Corporation of India (FCI) , the agency has procured around 24 million tonnes of wheat from all the producing states, down almost 17 % from the corresponding period last year the. The agency stated that the overall wheat procurement in the 2013-14 is expected to culminate at 26-28 million tonnes. This might be decline by 10-12 million less than last year.
Crude Palm Oil yesterday traded with the negative node and settled -0.13% down at 470.7 tracking weakness in spot demand though price seen supportive as investors pinned their hopes on a recovery in exports in the second half of May to help ease stocks. Malaysian palm oil shipments for the first half of the month fell as much as 8 percent, cargo surveyor data showed, but the decline was smaller than the drop of nearly a fifth in the first ten days, suggesting that export demand could be recovering.
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