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Agricultural commodities daily review: India and other countries (March 15, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

SPICES COMPLEX

MARKET ROUNDUP
- Spices complex continues to show weakness except menthe oil, Pepper and cardamom rest of the spices drifted lower despite of good deliveries which took place.

IN FOCUS
- "Sufficient stock of old Jeera crop is available with NCDEX which is weighing on prices. At Unjha, around 28,000-30,000 bags (55 kgs) of new crop are arriving per day," Arrivals are expected to gain pace in the next few days and would peak in March-April, pressuring prices
- "Overall trend is positive in turmeric. Buying is very good in spot," "As market is continuously moving up we may see some profit booking at around 10,054 rupees (April contract)."
- Indian pepper exports in January stood at 1,500 tonnes, down 28.57 percent on year, the Spices Board said. 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.
- Jeera huge difference between spot and futures has resulted into the selloff in future as despite of rise in futures prices spot prices didn't move up sharply fundamentals for the commodity still remain bullish.

FUNDAMENTAL OUTLOOK
- We may see some bounce back in Jeera prices after trading up in last three sessions. Due tobargain hunting Pepper prices can move up today. Turmeric prices may trade sideways to down due to fresh arrivals in the market. Mentha and Cardamom may trade down today.

GUAR, PULSES AND GRAINS COMPLEX

MARKET ROUNDUP
- Wheat rose by almost 1% for last three sessions on the fear that Government will not offload further stocks in the market. Chana pared its losses on Saturday demand from millers supported the prices. Guar complex extended its losses due to weak export demand for guar gum.

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.
- As the country is expecting bumper wheat production for the third successive year, state agencies are gearing up for the annual procurement drive which is expected to commence in full swing from April 1. The government is hoping to procure around 24 million tonne of wheat in the coming rabi marketing season. The Food Corporation of India (FCI) and states agencies procured above 25 million tonne last year.
- Huge supply and expected bumper production of wheat are pressurizing prices to move further south. Wheat prices dipped around 16 per cent since the middle of January after a bumper production estimated by the government for present season, coupled by weak off take, hurt the crop's prices.
- Faced with the possibility of wheat sold through open market sale scheme (OMSS) getting back into the procurement system, the government has decided to temporarily wind up its sale of wheat for bulk consumers by March-end in key wheat growing states of Punjab, Haryana and Uttar Pradesh. The government's annual procurement of wheat is expected to start from April 1. 

FUNDAMENTAL OUTLOOK
- Wheat will trade sideways to up following the prices in physical market. Chana is expected to trade in thin range. Guar may extend its losses today; selling on rise is recommended.

OIL AND OIL SEEDS COMPLEX

MARKET ROUNDUP
- Oilseed complex traded in red territory except Cottonseed oil cake on global cues. Soybean slumped by almost 2% due to excess supply in the market. Soy oil and Palm oil too trade down followed by international bourses.

IN FOCUS
- Exports of Malaysian palm oil products for Mar. 1-15 rose 18.4 percent to 669,227 tonnes from 565,114 tonnes shipped between Feb. 1 to15, cargo surveyor Intertek Testing Services said on Monday.
- Malaysia's palm oil futures ended down 0.41 percent on Friday pressured by weaker rival soyoil and due to a stronger ringgit currency, but expectations of stronger exports narrowed loses, traders said.
- The benchmark May crude palm oil futures on the Bursa Malaysia Derivatives Exchange fell 0.41 percent, or 11 ringgit, to 2,649 ringgit ($797) per tonne after hitting a low of 2,620 ringgit on the day.
- Egypt's Alexandria Cotton Exporters' Association (Alcotexa) committed to sell 3,155 tonnes of cotton in the week that ended on March 13, an Alcotexa official told Reuters on Sunday.
- Private exporters reported the sale of 220,000 tonnes of U.S. soybeans to China for delivery during the 2010/11 marketing year, the U.S. Agriculture Department said on Friday. The government also said private exporters reported the sale of 116,000 tonnes of U.S. corn to South Korea. It was for the 2009/10 marketing year.

FUNDAMENTAL OUTLOOK
- Outlook for Oilseed complex remains bearish today. Soybean may trade sideways to down; selling on rise is recommended. Soy oil and Palm oil may trade in thin range today.