By Nirmal Bang

SPICES COMPLEX

MARKET ROUNDUP
- Spices complex traded mix on Monday. Cardamom hit the upper circuit and ended 4 percent up. Mentha oil and Turmeric plunged by almost 1 per cent as slack international and domestic demand likely to weigh on prices.

IN FOCUS
- Prices of Jeera have fallen over 20 percent in January on worries about higher production this season. Fundamentals remained weak as higher output estimates this season due to favorable weather conditions in the growing regions weighed on sentiment.
- Turmeric exports in December remained flat at 3,250 tonnes from 3,350 tonnes a year ago. Nizamabad market received around 3,000- 4,000 bags of new crop today. Moisture content is high in the fresh arrivals.
- India's pepper output in 2010 is expected around last year's levels, but prices are unlikely to fall sharply in coming months due to low carry-over stocks.
- Short supply of cardamom in Guatemala is helping Indian exporters sell larger volumes despite high prices in local markets. Interestingly, the global shortage is also helping India to capture some lost export markets. India's export of small cardamom was 650 tonne in 2006-07 of which Saudi Arabia was the leading importer with 63% of the volume and 70% of the value.

FUNDAMENTAL OUTLOOK
- Spices are expected to trade sideways today. Selling is recommended particularly in Turmeric and Pepper.

GUAR, PULSES AND GRAINS COMPLEX

MARKET ROUNDUP
- Wheat futures extended its upward rally ended almost 1% on Monday tracking spot prices due to supply concern. Chana and Guar complex too settled up on bargain buying.

IN FOCUS
- Chana arrivals are 4000-5000 bags at Delhi's Lawrence Road Mandi. The Spot price is expected to open at Rs.2300-2320/quintal Rs20/ quintal more than previous day's trading session.
- The FCI, on instructions of the federal government, sells grains like wheat and rice in the open market to enhance supply during lean season, off-load excess stocks and save grains from deteriorating via OMSS. Spot market is trading higher mainly on account of lower stocks in the market the prices will come down once government releases stocks.
- MP and UP Government has decided to procure wheat from their own states on higher than MSP decided by central Government. They have imposed 5% tax on corporate on every transaction made to out of state.
- Guar maintained its last close in thin trading while guar gum went up on higher demand from upcountry markets. Prices of Guar are moving up in Physical markets Alwar, Bharatpur and kota, Moved up by almost Rs. 100-150.

FUNDAMENTAL OUTLOOK
- Prices of wheat can move up today tracking the prices in spot market. Chana and Guar are expected to trade up today; buying at dips is recommended.

OIL AND OIL SEEDS COMPLEX

MARKET ROUNDUP
- Oilseed complex ended in a green territory after seesawing in the first trading session. Cottonseed oil cake extended it losses as slack international demand is likely to weigh on the prices. Soybean and soy oil rose backed by global cues.

IN FOCUS
- Harvesting of soybean has reached 5 percent of Brazil's 65 million-tonne, 2009/10 soybean crop by Jan. 29, up from 3 percent the week before and 2 percent the year earlier. Brazil's soy farmers have sold 24 percent of the expected crop by Jan. 29, unchanged from the week earlier and behind the 31 percent sold ahead this time a year ago.
- China will continue a policy of stockpiling corn, soybeans and rapeseed aimed at supporting local farmers that last year led to record soy imports. It will also keep raising its minimum purchase prices for rice while increasing grain reserves in its consuming areas, according to a government document on agricultural policy issued on Sunday.
- "The sharp fall of international soy prices coupled with strong domestic soy prices will lead crushers in the northeast to shift their purchases to overseas markets," said the China National Grain and Oils Information Centre (CNGOIC) in a report released on Monday.
- The Karachi Cotton Association on Monday fixed the official spot rate, or base price, for Grade 3 cotton at 4,983 rupees per maund (40 kg).

FUNDAMENTAL OUTLOOK
- For today, buying at dips is recommended for soybean. Refined oil is expected to trade sideways to down today. Cottonseed oil cake will extend its downside rally; going short is recommended for the same.