By Nirmal Bang

SPICES COMPLEX

MARKET ROUNDUP
- Spices market traded in red yesterday except Mentha oil. Mentha oil managed to end the day with gains whereas rest of the commodities ended down as slack export demand for the last month tends to weigh on the prices of spices.

IN FOCUS
- Indian December pepper exports stood at 1,750 tonnes, down 32 percent on year. 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.
- The April turmeric contract ended down by 0.80 percent at 6,895 rupees per 100 kg in the previous session. The contract has fallen nearly 12 percent since a high of 7,834 on Jan. 4. Turmeric exports in December remained flat at 3,250 tonnes from 3,350 tonnes a year ago. Arrivals are expected to gather pace in the next few days, and would be peaking in March-April.
- Jeera exports in December 2009 dropped by 28 percent to 2,500 tonnes on year. Spot jeera fell by over 32 rupees to end at 12,281.25 rupees per 100 kg in Unjha, a major trading hub in Gujarat.

FUNDAMENTAL OUTLOOK
- We recommend selling for the entire spices complex. We expect prices of Pepper, Jeera and Turmeric to extend their losses today.

GUAR, PULSES AND GRAINS COMPLEX

MARKET ROUNDUP
- Guarseed and Guargum posted marginal upside after sharp downfall during last week on bargain hunting and traders thought that last week's correction was slightly overdone as fundamentals of Guar complex still remain positive. Wheat futures ended almost 1% down tracking the prices in spot market. Chana plunged after showing a three day rally in line due to slack demand from millers.

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.
- Iraq has finalized deals to buy at least 700,000 tonnes of Canadian, U.S, German, Russian, and Australian wheat from major suppliers in one of the bigger purchases in recent years, trade sources said on Wednesday.
- India may release wheat under the open market sales scheme (OMSS) in two weeks time using electronic auction facility.
- Zimbabwe's minister of Agriculture says the country needs to urgently import 500,000 tonnes of maize to avert corn shortages following an extended dry spell that has adversely affected crop production.

FUNDAMENTAL OUTLOOK
- We recommend selling Wheat on each rise. We may see some profit booking in Chana during the day after witnessing three month rally but outlook remains positive for Chana; buying is recommended at the level of Rs.2175/quintal. Guar too expected to extend its upward rally.

OIL AND OIL SEEDS COMPLEX

MARKET ROUNDUP
- Oilseed complex managed to end positive after seesawing early in the previous trading session. Soybean and Soy oil triggered sharp upside in the complex backed by global cues. Cottonseed oil cake slumped slightly on slack domestic demand is likely to weigh on its prices.

IN FOCUS
- Brazil's 2009/10 soybean crop that will enter the peak of harvest in the coming months is seen at 65.1 million tonnes, up 0.8 percent from the 64.6 million tonnes forecast in January, analysts AgraFNP said on Wednesday.
- China's grain reserves management agency, Sinograin, is selling 208,400 tonnes of domestic soybeans from state reserves to the market, according to a company notice. The Chinese government has pledged to continue stockpiling soy this year to help boost farmer incomes.
- Price of medium staple cotton rose by Rs.5 per maund in the Abohar market. In the morning trade, price was ruling at Rs.2,580 per maund. Price rose owing to the moderate in demand. Arrivals were stable in the Abohar market at 700 bales.
- 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
- Soybean in particular is expected to trade down. We may see some correction in Refined oil too today but fundamental outlook for it remains bullish on the back of global cues. One may buy Refined oil at the level of Rs.445-448 targeting Rs.468 for short term.