Cotton on MCX settled up by 0.58% at 20730 due to rising domestic as well as export demand in the spot market. Though, reports of improving supplies from major growing regions capped some gains in cotton. As per CCI, around 30 lakh bales of cotton has been exported from the country so far as against a planned target of some 50 -60 lakh bales this cotton season. CAI estimated output at 341 lakh bales and revised its consumption higher at 295 lakh bales compared to 290 last year. As on Feb 15, 2017 about 185.9 lakh bales of cotton have arrived in the domestic market. Moreover, India has exported around 2.5 million bales so far in the 2016/17 season that started on Oct. 1. Meanwhile, CCI has also been purchasing cotton at commercial rates and has purchased around 70,000 bales till date.
Cardamom on MCX settled up by 1.95% at 1462.1 on good buying support amid a squeeze in supplies. The small cardamom markets last week remained nearly steady on matching demand and supply at auctions held in Kerala and Tamil Nadu. The week witnessed good export demand even at the current price levels and that in turn has kept the market by and large steady. Exporters bought an estimated 100-120 tonnes of capsules last week, he said. Arrivals last week slipped to 427 tonnes from 463 tonnes the previous week. The auction average was vacillating between Rs. 1.305 and Rs. 1.350 a kg. Total arrivals during the season from August 1 up to February 18 were at 12,853 tonnes and sales were at 12,252 tonnes. Supply continued to show a shrinkage following the continued dry spell.
Maize on NCDEX settled down by -0.63% at 1412 tracking weakness in spot demand and overseas prices. Mexico's attempts to diversify its supplies of corn could threaten a crucial market for U. S. farmers who are increasingly dependent on exports to unload record stockpiles that are depressing prices. Mexico buys nearly all its corn imports from the United States - shipments that totaled 13.603 million tonnes in the year ending Aug. 31, 2016. The sales account for about 28 percent of total U. S. corn exports, according to the U. S. Department of Agriculture. The U. S.
Jeera on NCDEX settled up by 1.13% at 17390 on expectation of good export demand at the spot market. Further, lower output from the producing regions too fuelled the uptrend. Moreover, sowing in Rajasthan is reported to be lower by 15-20% also supported jeera pries. Reports showed that the sowing of Jeera in Gujarat is pegged at 278,000 hectare as against 295,000 hectare a year ago. The arrivals of jeera in Gujarat is improving so as the demand. Around 3,044 tonnes of jeera arrived during Feb 13-17 compared to 1,957 tonnes in the previous week. As per second advance estimates for 2016/17, production of Jeera in Gujarat will be 2.21 lt, down almost 11% compared to last year production of 2.38 lt.
Turmeric on NCDEX settled up by 2.29% at 6892 on short covering tracking firmness in spot demand after prices remained under pressure on low demand and improving supplies. The demand for exports has also improved as new season good quality crop have hit the physical market. On the export front, country exported about 74,524 tonnes; up by 32% during April- Nov period compared to last year exports of 56,471 tonnes, as per government data. The turmeric arrivals in the country increase 22% last week (13-17 Feb) compared to previous week. New crop arrivals have started in all the major producing centres of Andhra Pradesh, Telangana, Maharashtra, Odisha.
Mustard Seed on NCDEX settled down by -0.11% at 3788 tracking weakness in spot demand and on expectation of higher supply. India's agriculture department in second advance estimated pegged mustard seed crop at 7.912 million tons as compared to 6.797 million tons a year ago. Sources projected new mustard crop between 6.5-7 million tons. With the expectation of good crop in 2016/17, the new season supplies will be at higher size in the country. In addition to that the carryover stocks from last year might be higher as country imported record mustard oil and exported multiyear low mustard meal. However, the prices will get some support from the increase in minimum support price (MSP) of Rapeseed & Mustard to Rs. 3,700 per quintal for 2016/17 from Rs. 3,350 per quintal last year.
Crude palm Oil settled flat tracking weakness in spot demand and international prices. Prices also remained under pressure on expectations of higher production and ample supplies of rival soybean oil. Moreover, over government has cut base import prices for palm products in India makes prices cheaper to import. For 2nd half of Feb, the prices of CPO and RBD palm oil cut by $8 and $39 a tonnes respectively. Exports of Malaysian palm oil products for Feb 1-20 fell 0.8% to 733,288 tonnes from 739,367 tonnes shipped a month ago. Moreover, Malaysia raised the export tax rate 8.0% a ton in March compared with February's 7.5% levy. Exports of Malaysian palm oil products for Feb 1-20 fell 0.8% to 733,288 tonnes from 739,367 tonnes shipped a month ago.
Ref. Soyaoil on NCDEX settled down by -0.18% at 654.8 due to weak physical demand and higher production estimates of soyoil. The production of edible oil in 2016/17 will be 72.8 lt, up 25.5% compared to last year. Last year, edible oil production was at 58 lt. The tariff value of crude soyoil was cut by $32 per tonnes to $847 for the second fortnight of February. According to data released by the SEA, soy oil imports fell nearly 62% on year to 1.67 lt mt in January. On the domestic front, the availability of more domestic soya oil on the back of ample soyabean supplies is dragging down the prices of soya oil derivatives. As per USDA, in 2016-17, soya oil production in India is expected to be around 1.62 million tonnes (mt), up 55 per cent from the previous year.
Soyabean on NCDEX settled down by -0.75% at 2897 on ample supply in the domestic spot market. Further, favorable growing weather in South America stoked expectations of ample global supply, also influenced soyabean prices. The production is expected to be higher this year and the oil millers active at lower prices so that they can have parity to export soy meal at competitive rates. The Soybean Processors Association of India has raised the estimate for soy meal exports in 2016-17 (Oct-Sep) to 1.8 mt from 1.0 mt projected earlier.
Mentha oil on MCX settled up by 0.22% at 1029.6 amid rising demand in the domestic spot market. Further, tight stocks position on restricted supplies from producing belts of Chandausi in Uttar Pradesh, too supported mentha oil prices uptrend. China and Japan have reduced their buying quantity in the recent past due to the economic slowdown had impacted Mint product's exports which declined substantially from the export basket by 18% in terms of volume and 4% in terms of value year-on-year. 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.
Aluminium on MCX settled up 0.52% at 126.05 as prices recovered on short covering despite of concerns that Chinese supply is rising. A major aluminium producer has made an indicative offer of a premium of $125 per tonne to Japanese buyers for April-June primary metal shipments, up 32 percent from the last quarter, three sources directly involved in pricing talks said. The offer comes as premiums climb in the United States and Europe, and as some Japanese buyers face lower inventories due to healthy local demand. Japan is Asia's biggest aluminium importer and the premiums for primary metal shipments that it agrees to pay each quarter over the London Metal Exchange (LME) cash price set the benchmark for the region.
Nickel on MCX settled down -0.69% at 716.50 tracking weakness from LME Nickel which traded steady at around $10,790 down 0.6 percent from the previous session, after closing down 2.7 percent overnight. It rose to its highest since Dec. 19 on Monday, amid a mining crackdown in the Philippines. Yesterday the momentum was due to the US dollar, which ascended on Tuesday. With a lack of new, fundamental developments in the nickel market, the dollar-denominated commodity is largely tracking the greenback’s movements. When the dollar climbs it makes the commodity less appealing for holders of international currencies. Meanwhile the INSG yesterday published supply and demand data on the global nickel market for the full year 2016.
Zinc on MCX settled down -0.29% at 191.45 as funds cut bets on higher prices ahead of minutes from the Federal Reserve's last meeting and a stronger dollar. Europe’s largest zinc producer Nyrstar is considering restarting its idled and for sale Myra Falls zinc-copper mine in light of improved market conditions. Small-to-mid-sized zinc mining companies are taking advantage of soaring zinc prices and rock-bottom treatment charges (TCs) by targeting increased production in 2017 to capture a continuing bull market for the metal. The zinc market is slated for a substantial 250,000 tonne deficit this year, according to the International Lead and Zinc Study Group (ILZSG), on the back of the continued absence of Glencore’s major mine since 2015.
Copper on MCX settled down -0.39% at 403.65 while overall traded in the range amid a cooling in China’s property market and supply uncertainties, while the market awaits clearer direction from the US FOMC meeting minutes due to be released. In minutes from the Fed’s Jan. 31-Feb. 1 meeting, Fed members indicated an interest in hiking rates “fairly soon” but noted that the fiscal policy of President Donald Trump was still a wild card. Hints that the Fed will move to raise rates rapidly typically leads to a stronger dollar. That, in turn, usually provides a headwind to dollar-pegged assets including metals, making them less attractive to buyers using other monetary units. Following the release of the minutes, however, the dollar declined.
Naturalgas on MCX settled up 1.39% at 174.90 rebounding slightly from losses in the previous session, with traders betting a steep fall may be petering out. Natural-gas prices fell to a six-month low Tuesday, posting losses of nearly 10%--their second- largest for any one session this year. But bargain buyers are steering the market higher Wednesday, betting that it will be difficult for gas prices to keep going down. Natural gas consumption is seasonal, with spikes in demand occurring in winter months. As such, storage levels build up over the course of the year, especially in the milder months of spring and fall. Then, gas is used up in the winter. The winter of 2016 was the warmest on record, leading to a paltry drawdown in inventories.
Crudeoil on MCX settled down -1.83% at 3601 fell tracking weakness from Nymex Crude which fell from yearly highs in yesterday's session ahead of U. S. inventories data dropped by -1.4%, to settle at $53.59 a barrel snapping a three-session string of gains as concerns about growing output by producers outside of a pact to curtail global production weighed on crude futures. Crude inventories fell by 884,000 barrels in the week to Feb. 17 to 512.7 million, compared with market expectations for an increase of 3.5mbls, data from industry group the API showed on Wednesday. In the US, crude stocks at the Cushing, Oklahoma, delivery hub were down by 1.7mbls, while U. S. crude imports fell last week by 1.5mbpd to 7.398mbpd, according to the API.
Silver on MCX settled down -0.29% at 42713 while Comex Silver settled above at $18.02 an ounce as prices received a boost from a weaker dollar after the Federal Reserve indicated support for rate hikes sooner rather than later following the precious metal’s third straight decline. In minutes from the Fed’s Jan. 31-Feb. 1 meeting, Fed members indicated an interest in hiking rates “fairly soon” but noted that the fiscal policy of President Donald Trump was still a wild card. Hints that the Fed will move to raise rates rapidly typically leads to a stronger dollar. That, in turn, usually provides a headwind to dollar-pegged assets including bullion, making them less attractive to buyers using other monetary units. Following the release of the minutes, however, the dollar declined.
Gold on MCX settled down -0.32% at 29208 inched lower on Wednesday dropped as Comex Gold prices eased from its 3- month highs above $1240 an ounce as stocks were poised to extend recent gains. Bullion prices traded with weakness as the dollar firmed, with investors looking to minutes from the U. S. Federal Reserve's latest meeting for clues on the timing of interest rate hikes. Minutes from the last US Fed meeting showed uncertainty among policymakers about the new Trump administration's economic program. Still, many Fed policymakers said it may be appropriate to raise interest rates "fairly soon" should jobs and inflation data come in line with expectations, minutes of their Jan. 31-Feb. 1 policy meeting showed.
Cotton on MCX settled up by 0.29% at 20520 on short covering after prices dropped as arrivals have improved in the physical market. About 185.9 lakh bales of cotton have arrived in the domestic market. Maharashtra is leading the arrivals figures at 51 lakh bales followed by Gujarat at 42 lakh bales. Moreover, India has exported around 2.5 million bales so far in the 201617 season that started on Oct. 1. In 201516 India exported 6.9 million bales, but this year exports could fall 28 % to 5 million bales. India's cotton arrivals falls 5% to 12.83 million bales until Jan 19 on late commencement of supplies though output for the 2016-17 is expected to higher. Last year arrivals till date stood at 13.51 million bales, according to CCI (Cotton Corporation of India) data.
Cardamom on MCX settled down by -1.86% at 1447.4 tracking weakness in spot demand despite of tight stocks, declining supplies and adverse weather conditions. Harvesting of cardamom is almost over and arrivals may come down further in the coming days. Cardamom prices are likely to trade range bound to firm for the coming couple of weeks. According traders estimates, cardamom production for the current year is around 18,000 ton down from 28,000 tons a year ago showing a fall of 35.7% on year. In Delhi spot market prices of cardamom (Robin quality) fell by Rs 25 at Rs 1,325-1,350 per kg due to lack of demand from Uttar Pradesh- largest buyer-because of assembly elections. India exported 1,625 ton cardamom during Apr-Sept versus 2,026 ton a year ago.
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