Thursday, December 29, 2016
Market Overview
Oilseed output in country in 2016-17 kharif season has
been pegged at 17.8 mln tn, up 41% on year, largely
due to rise in yield. Solvent Extractors' Association of
India announced that total oilseed output was
estimated at 12.6 mln tn in year-ago period. Timely
southwest rains and favourable weather conditions
improved overall output of kharif oilseeds in country.
Sugar prices expected to stay firm in first quarter of
2017, as cost of production increases in Uttar Pradesh
and mills in Maharashtra plan to shut early. Condition
of sugarcane crop was very poor in Maharashtra, and
already 15 mills have closed crushing after running for
30-40 days. More mills are likely to close in 15 days.
Same condition prevails in Karnataka and it seems that
production would be almost half of last year.
Production of soybean has been estimated at 10.6 mln
tn, up from 7.2 mln tn a year ago. Soybean accounts for
nearly 60% of kharif oilseed basket. Even though
acreage under soybean was lower this year, output is
likely to rise due to higher yields.
Jeera futures traded higher for second consecutive
session, tracking good demand in physical market. The
demand for exports has supported jeera prices even as
good sowing progress is now weighing on prices.
Mentha oil prices slid as trimming of positions by
participants due to fall in demand from consuming
industries in spot market, mainly helped mentha oil
prices to trade lower at futures trade.
Malaysian palm oil futures rose to their highest in one-
and-a-half weeks, marking second consecutive session
of gains, helped by tight supplies and improving
exports. U.S. wheat and soybean futures fell as
investors squared positions toward end of year and the
dollar firmed. Indian soyoil futures rose for third
straight day, as it continued to benefit from strong
overseas sentiment and tight domestic supplies.
Commodity
Turmeric
Jeera
Soybean
Soy Oil
R M Seed
CPO
Sugar
Wheat
Mentha Oil
Cotton
Exchange
NCDEX
NCDEX
NCDEX
NCDEX
NCDEX
MCX
NCDEX
NCDEX
MCX
MCX
Expiry
Apr
Jan
Jan
Jan
Jan
Dec
Mar
Jan
Dec
Dec
Price
6782.0
17520.0
3033.0
714.9
4309.0
579.2
3732.0
1927.0
1026.2
19150.0
%
Change
-0.1%
0.6%
0.6%
-0.4%
0.1%
0.4%
0.2%
-2.2%
-0.6%
0.4%
Chart of the Day: NCDEX SOYBEAN
As shown on the daily chart, NCDEX Soybean (Jan contract)
price has broken out of a downward-sloping channel and is
currently consolidating in a ‘Symmetrical Triangle’. The
price could now find support near Rs.2960-2970 and test
of upside resistance near Rs.3120-3130 zone looks
possible. Buying on dips is thus advised for the short-term.
1
Please refer to disclaimer at the end of the report.