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Agricultural commodities daily review: India and other countries (March 16, 2010)

Contributed by Nirmal Bang

By Nirmal Bang

SPICES COMPLEX

MARKET ROUNDUP
- Spices complex witnessed some selling pressure especially in Mentha oil, Pepper and Jeera. Mentha oil slumped by more than 1% on higher arrivals in the market. Turmeric hit the circuit and ended 4% up.

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 expect spices to trade side-ways today. Buying at dips is recommended particularly in Turmeric and Cardamom.

GUAR, PULSES AND GRAINS COMPLEX

MARKET ROUNDUP
- Wheat futures extended its gains in yesterday's trading session on the back of supply tightening by Government. Chana plunged due to fresh arrivals in the market. Guar complex too settled almost 1% down on profit booking.

IN FOCUS
- Chana arrivals are 4000-5000 bags at Delhi's Lawrence Road Mandi. The Spot price is expected to open at Rs.2150-2160/quintal Rs20/ quintal more than previous day's trading session.
- The Financial Technologies promoted spot commodity exchange National Spot Exchange Ltd (NSEL) is commencing auctions of Food Corporation of India's (FCI) wheat on Tuesday for selling 15,000 tonnes from three depots in Delhi. With the threshold price as Rs 1,244.08 a quintal, the auction will continue till Wednesday.
- Defending his budget proposal for the FY 2010-11 in the state assembly, Rajasthan Chief Minister Ashok Gehlot today announced to provide wheat at Rs two per kg to state BPL families besides doubling the subsidy on transportation of fodder for cattle.
- The Centre could extend ban on pulses exports by another year besides allowing dutyfree imports till March 31, 2011. The subsidized pulses distribution scheme could also be stretched by another year till March 31, 2011, with four lakh tonnes of pulses distributed through the scheme. The government is also likely to put off any decision on export of wheat amid high food inflation.

FUNDAMENTAL OUTLOOK
- Chana may trade sideways to down. Guar too looks bearish; selling on rise is recommended.

OIL AND OIL SEEDS COMPLEX

MARKET ROUNDUP
- Oilseed complex traded sideways to down except Cottonseed oil cake and castor. Soybean settled almost 1% down on the back of excess supply in the market. Soy oil and Palm oil too plunged on Monday tracking 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
- We expect oilseed complex to trade sideways today. Soybean bean may trade down today due to excess supply in the market.