By Nirmal Bang

SPICES COMPLEX

MARKET ROUNDUP:
- Spices complex continues to remain vibrant mainly on account of Jeera which continues to beat the expectation of traders and rally continued where as pepper, turmeric, mentha oil remained subdued.

IN FOCUS:
- Jeera, as markets are closed in Unjha due to festival in market due to local festival, stockiest were seen stocking Jeera as markets are closed for week. Exports remained robust for Jeera that lent support to the prices.
- Pepper exports from India haven't picked up as exports from Vietnam have been robust, lower inventories in Vietnam and any delay in harvesting in India can trigger upside in pepper futures, arrivals of green pepper is still negligent in Cochin this may support prices of pepper.
- Turmeric, after sharp correction bounce back can't be ruled out but it seems commodity has entered in bear phase and slack domestic and export demand due to high prices and expectation that harvesting for new turmeric will begin at January end are the main reasons for it to go demand.
- Arrivals in The Kerala Cardamom Processing and Marketing Company Limited, Thekkady stood at 78153 kgs. and prices were marginally down good demand was witnessed in North India for cardamom.

FUNDAMENTAL OUTLOOK:
- We recommend buying pepper at dips for the day, jeera futures in absence of triggers from spot market. We recommend to book profits on long positions in jeera and one should sell turmeric on rallies.

GUAR, PULSES AND GRAINS COMPLEX

MARKET ROUNDUP:
- Chana futures plunges during last trading session as counter witnessed some profit taking. Guar complex traded firm and ended a hair higher. Wheat futures too ended lower during last trading session.

IN FOCUS:
- Chana arrivals are 7000-8000 bags at Delhi's Lawrence Road Mandi. The Spot price is expected to open at Rs.2465-75/quintal same it was on previous day's trading session.
- Demand for Chana dal is likely to be sluggish for the coming months mainly due to increased consumption of Green vegetable during the winter season.
- Guarseed arrivals remained sluggish for the entire last week backed by low production figures this year.
- The level of subsidy for wheat has increased due to increase in its cost by Rs. 100/quintal in 2009-10 worked out at between 56 and 60 per cent for the above poverty line (APL) category consumers and between 70 and 72.4 per cent for the below poverty line (BPL) consumers.
- The Centre had decided to sell 15 lakh tonnes of wheat and five lakh tonnes of rice in the open market to increase availability and cool prices. Rice prices have already gone up by about 25 per cent in the last five months while wheat rates have shot up by about 20 per cent since September.

FUNDAMENTAL OUTLOOK:
- Chana futures are expected to trade sideways for the day and we recommend selling on every rise. Guar complex is expected to firm for the, we recommend to buy at dips for the entire complex. Wheat is expected to trade firm for the day.

OIL AND OIL SEEDS COMPLEX

MARKET ROUNDUP:
- Oilseeds complex traded mixed in last trading session. Soybean ended a tad higher. Plam oil futures traded flat. Cotton seeds too ended a tad lower.

IN FOCUS:
- Agricultural futures markets will focus on soybeans this week, after strong export demand lifted beans on Friday to the highest level in 2 1/2-months despite pressure from a higher dollar.
- After several weeks out of the market, Brazilian soybean producers returned to selling the 2009/10 crop that they are currently planting, prompted by rising international prices over the past week.
- China's aggressive buying of U.S. soy, strong cash markets, modest hedge selling by producers and fund buying pushed soy into the spotlight.
- Argentina's 2009/10 soy area is seen at a record 18.5 million hectares, up from 18 million hectares in the previous season, a government report said.
- U.S. soybean futures closed higher on Friday as strong demand from China pulled prices up despite a weak crude oil market and a firm dollar.

FUNDAMENTAL OUTLOOK:
- Oilseeds complex is expected to trade firm for the day. We recommend buying Cotton seed Oil cake and Soy oil for the day. The complex is expected to take some direction from global market. Plam oil too is expected to trade sideways to up and we recommend buying at dips for this counter as well.