Ref.Soya oil on NCDEX settled down -0.34% at 626.55 amid robust supply in local market along with lower tariff rates. International Grains Council in its report hiked soybean output forecast for 2016-17 by 5 million tons to 341 million tons and for 2017-18 output seen at 345 million tons. Moreover, according to market participants and traders soyoil port stock at various ports of the country totalled at 121,000 ton in the week ended on March 19 as compared to 94,000 tons a week ago, which is sufficient to meet the demand. For soyoil Indian importers, prices of oil in India are Rs 577 per 10 kilogram as compared to that cost from Argentina is Rs 570.61 per 10 kilogram.
Soyabean prices gained tracking firmness in spot demand on limited supply in local mandis. Prices also seen supported supported by lower arrivals as farmers are reluctant to sell crop below Rs 2,800 per quintal in the local mandis. The supplies have been decreased drastically this week compared to previous week. As per data, arrivals of soybean during 27-31 Mar were about 24,979 tonnes Vs 80,092 tonnes during previous week. The mills have procured large volumes of soybean earlier in the season lower levels which helps in more competitive prices of meals for record exports. The market may get support at lower levels from news of Govt to allow export of edible oils including soya oil.
Menthaoil prices dropped on fresh selling after the speculation that sowing activity had been increased in key production area of UP. The weather looked good and everything seemed fine as of now as farmers are still under stress, as they have already suffered a lot because of demonetization. As cash is the primary mode of transaction in agriculture sector which contributes 15% to India’s total output. Earlier it was estimated that total area under Mentha planting will drop by 20% to 1.75 lakh ha for this season resulting into a proportionate fall in Mentha oil production this year.
Aluminium on MCX settled down -0.36% at 125.85 on profit booking after prices gained on expectations of a tighter market , but rising prices are likely to mean producers restart capacity and fill any gap between supply and demand. China early last month ordered steel and aluminium producers in 28 cities to slash output during the winter months in a bid to curb noxious smog. Focus on falling stocks of aluminium in LME approved warehouses, which at nearly 1.9 million tonnes are down nearly 20 percent since mid-January. Cancelled warrants -- metal earmarked for delivery -- at 46 percent are also a concern for those wanting to trade on the LME. LME stocks fall 14,250 tonnes to fresh low since December 2008.
Nickel on MCX settled up 2% at 652.20 dragged up by gains in the steel sector after a cyclone in Australia damaged transport routes for coking coal. Indonesian Mining Ministry official said the ministry has issued export recommendation to allow Antam to export 2.7 million tonnes of nickel ore. There was news that 4 Indonesian nickel ore mining firms are applying for ore export quotas, and Antam got the initial clearance for Indonesian nickel ore exports. But, the export quota of 2.70 million WMT is much below its application amount of 6 million WMT, raising market doubts over 2017 nickel ore shipments from Indonesia, world’s number one nickel ore supplier before its 2014 export ore ban. The U.S.
Zinc on MCX settled up 1.8% at 178.55 tracking gains from LME Zinc prices which have bounced after touching a three-week low closed up 1 per cent at $US2,736, recovering from a low of $US2,702, the weakest since March 14, and after falling 2.2 per cent on Monday. London Metal Exchange zinc has risen 11 percent so far this year to $2,861 a tonne, having soared 60 pct last year, after prices touched seven year lows last January. Yesterday prices also seen support after the a cyclone in Australia damaged transport routes for coking coal, fuelling a jump in prices.
Copper on MCX settled up 0.53% at 376.65 recovered from the Monday’s fall tracking gains from LME copper which ended 0.4 per cent higher at $US5,778, after slipping to its lowest since March 27 at $US5,730. On Monday, it broke below the 100-day moving average at $5785, and ended with a 1.5 per cent loss. As pressure seen after the world's biggest copper mine Escondida has restarted production but is still some way from a return to full capacity after a strike that ended in late March, a senior executive from mine owner BHP Billiton, said. Chinese markets were out on holiday for a second day, draining the market of liquidity and direction in yesterday session also.
Naturalgas on MCX settled up 4.21% at 212.8 rose to a two-month high Tuesday, a move likely tied to falling output and rising power-plant outages that could lead to more demand for gas-fired power. The jump is part of a monthlong rally that already has lifted gas 28% from its low of 2017. A glut that has lingered for years and often led to historically low prices finally appears to be causing output cuts and new demand to reverse the market. Also a strong spring storm with heavy showers and thunderstorms will track across the southern and east-central U.S. and then across the Northeast in the first half of the coming week, according to forecasters at NatGasWeather.com. However a strong spring storm with heavy showers and thunderstorms will track across the eastern US today.
Crudeoil on MCX settled up 1.46% at 3325 gained tracking firmness from Nymex Crude which settled above $51 mark for first time in month supported by an unplanned production outage in the North Sea and expectations of a drawdown in U.S. crude and product inventories. In the North Sea, production of crude oil from Britain's 180,000 barrel per day Buzzard field was temporarily halted while repair work is carried out at an onshore processing terminal, noting normal output should be restored in the coming day or two. Earlier in the session, WTI dipped below $50, before oil futures regained their footing. Crude oil prices was also supported after a larger than expected draw in industry estimates of U.S.
Silver on MCX settled up 0.59% at 42570 as investors turned their attention to U.S. trade data ahead of President Donald Trump's meeting with Chinese President Xi Jinping. Prices also seen supported as investors parsed through mixed manufacturing data and weaker-than-expected auto sales numbers. The ISM survey of manufacturing-sector activity showed growth slowing, albeit no more than expected. Meanwhile, the Commerce Department said February U.S. construction spending increased 0.8% to its highest level in more than ten years, but it missed expectations of 1% rise. The main focus for markets this week centers on President Donald Trump's first meeting with Chinese counterpart Xi Jinping on Thursday and Friday.
Gold on MCX settled up 0.42% at 29016 buoyed by a weaker dollar on tepid economic data from the United States and as investors turned to safe-haven assets on worries over geopolitical tensions. Supporting gold was geopolitical tension sparked by U.S. President Donald Trump who on Sunday held out the possibility of using trade as a lever to secure Chinese cooperation against North Korea. A measure of U.S. manufacturing activity retreated from a 2-1/2 year high in March amid a decline in production and an inventory drawdown. Hedge funds and money managers raised their net long position in COMEX gold by 33,179 to 99,150 lots in the week to March 28, the highest in more than three weeks.
Cotton on MCX settled down -0.24% at 21040 on higher supply in the domestic market. India's 2016-17 cotton imports are set to jump more than a third from a year ago to a record 3 million bales as the rupee's rise makes buying overseas cheaper, senior industry officials and executives said. The strong rupee - now at its highest level in 18 months - has also braked cotton exports from the world's biggest producer of the fibre, a trend that has helped rival suppliers in Brazil, the United States and some African countries boost their own exports. That total of 3 million bales would be 36 percent more than the 2.2 million bales imported in the 2015-16 crop year, with stocks coming mainly from African countries, the United States, Brazil and Australia.
Cardamom on MCX settled down -0.68% at 1303.8 following reports of increasing arrivals of the spices from Guatemala, though domestic supplies are weak. Despite estimates of lower output and tight stocks, cardamom prices are ruling easy due to higher imports from Guatemala. Prices remained under pressure due to cheaper imports, subdued exports demand and stock liquidation by stockists and planters. India exported 1,625 ton cardamom during Apr-Sept versus 2,026 ton a year ago. Harvesting is nearly complete and hence arrivals are unlikely to pick up. Exporters and north Indian dealers have slowed down because of the higher prices.
Maize on NCDEX settled up 0.57% at 1417 tracking firmness in spot demand and overseas prices. The USDA data showed weekly U.S. corn export sales of 716,000 tonnes for shipment during the current marketing season, below estimates for 900,000 to 1.2 million tonnes. Farmers may harvest at an estimated 14.32-million tonnes of maize in 2017‚ which represents the third-biggest maize crop on record. Favourable weather conditions have enabled producers to increase the area planted to summer crops‚ with maize output now expected to be 84% higher in 2017 than in 2016. In its second estimate for the year on Tuesday‚ the Crop Estimates Committee said it had revised the maize output estimate by 2.91% from the first estimate.
Jeera on NCDEX settled down -0.28% at 18120 on late selling after prices earlier gains on a lower output forecast and strong demand from overseas buyers. Exporters are likely to fetch better realisation due to the quality of the jeera crop. A recent assessment by the Federation of Indian Spices Stakeholders in Udaipur, Rajasthan, has forecast India’s cumin seed production at 5.83 million bags of 40 kg each (233,280 tonnes) this year against 4.20 million bags of 40 kg each (168,320 tonnes) last year. The latest spell of rainfall last week is estimated to have spoiled 30 per cent of the standing crop. Production estimates for 2016-17 are lower due to a decline in the jeera acreage in Gujarat.
Turmeric on NCDEX settled down -0.5% at 6376 as pressure continues as turmeric output is expected to be bumper as not only the acreage was higher but weather remained favourable. In coming days, arrivals are expected to increase which could put pressure over prices. New crop arrivals have started in all the major producing centres of Andhra Pradesh, Telangana, Maharashtra, Odisha. Production in the ongoing season is expected to increase mainly on higher sowing area and favourable weather conditions in Maharashtra, Telangana and Andhra Pradesh etc. On the export front, country exported about 82,115 tons during April-December period, up by 28% compared to last year exports of 64,105 tons. Though, some gains were capped on heavy arrivals from the producing belts.
Rmseed on NCDEX settled down -0.68% at 3953 tracking weakness in spot demand on higher stockpiles in local mandis. New mustard seed arrivals across the country totaled at 535,000 bags as compared to 350,000 in the previous session and crop quality is better than last year. India is expected to produce around 6.5-7 million tonnes (mt) of rape mustard seeds in 2016-17 as compared to 5.8 mt produced in 2015-16 due to higher acreage and improving productivity. The carry-forward stock from the previous season was around 0.15 mt. The Ministry of Agriculture expects 8.5 mt of mustard seeds to be produced in the current rabi season against 6.8 mt a year ago, as per its 4th advanced estimates.
Crude palm oil ended with flat node amid weak demand in export market. Malaysia palm oil exports during Mar 1-25 fell by around 1.2% compared to a month earlier on subdued demand from China, data showed. Malaysia palm oil exports fell to 896,621 tons during Mar 1-25 compared to 907,078 tons for the same period a month ago, DowJones reported citing data from Intertek, a private surveyor. Mistry expected price to test MAY 3,000 in April-May on lower stock and slow pace of recovery in production. Mistry maintains forecast that 3rd-month Bursa Malaysia Derivatives futures at MYR 2,500 per ton, or FOB olein at $620 per ton, are strong supports in the fourth quarter of 2017.
Ref.Soya oil on NCDEX settled down -0.43% at 623.1 on hope of increasing supply in near term and higher stockpiles. Prices of oil were down on higher supply as inventories with traders and stockiest is sufficient and they have opted to buy as per requirements to cater retail demand. Moreover, soyoil stock at various ports of the country totalled at March 20 at 121,000 tons as compared to 94,000 tons a week ago, which is sufficient to meet the demand. According to data released by the Solvent Extractors' Association of India (SEA), India's edible oil imports rose 15.8% on year to 1.23 mt in February. The government has cut the base import price of soyoil by $9 per tonnes for second half of March. The base import price of crude soyoil is now at $805 from $879 during Feb first half.
Soyabean on NCDEX settled down -0.17% at 2941 on higher arrivals in local mandis and on subdued demand for soymeal from poultry sectors. Arrivals in the local mandis were estimated at 130,000-133,000 bags today as compared to 50,000-65,000 bags on the previous day. Demand from crushers is just to meet the immediate requirement due to negative crush margins. Demand for soymeal is also weak from domestic buyers due to lean demand for eggs and broilers during summers. Soymeal demand from poultry feed manufacturer is reducing at higher level as most of the poultry farmers are facing decline in profit margin if they procure soymeal at higher level.