By Nirmal Bang

OIL AND OIL SEEDS COMPLEX

MARKET ROUNDUP

- Oilseed complex traded flat tracking international markets. Soybean managed to end down on poor spot demand while Soy oil and Palm oil traded tad lower as weakness in Malaysian palm oil outweighed hopes of higher demand due to ongoing wedding season. Cottonseed oil cake rose by .60% on short covering.

IN FOCUS

- China's October 2009/September 2010 soybean imports are likely to rise by 3.9 million tonnes on the year to 45.0 million tonnes, Hamburgbased oilseeds analysts Oil World said on Tuesday. This was 1.2 million tonnes above Oil World's previous estimate in March.

- In the main grains market of Rosario, soy prices closed flat at between 880 pesos and 890 pesos ($225-$227) per tonne, reflecting the minimal changes in the nearby months in Chicago, traders said.

- China is still not buying Argentine soyoil due to a dispute linked to a new import standard imposed by Beijing a month ago, traders in Buenos Aires said.

- Chinese importers are still not buying Argentine soyoil almost a month after Beijing started imposing tough new quality standards, traders in Buenos Aires said on Wednesday. There was talk in Chicago that China had bought Argentine soyoil, but the traders said no new sales had been registered and that Chinese importers were switching orders to Brazil.

- Argentina is likely to raise soyoil exports sharply in April as it finds new buyers to compensate for sales blocked by a trade dispute with China, Hamburg-based oilseeds analysts Oil World said on Tuesday. Argentina is likely to export around 500,000 tonnes of soyoil in April, up from 423,000 tonnes in April 2009 and up from just 127,000 tonnes on March 2010, Oil World estimates.

FUNDAMENTAL OUTLOOK

- We expects edible oil to open tad higher today but after early session we expect prices to come up on the back of robust domestic demand and lesser stocks at ports and slack imports.

GUAR, PULSES AND GRAINS COMPLEX

MARKET ROUNDUP

- Wheat erased early gains and slumped by .5% in yesterday's trading session on profit booking. Chana plunged by almost 3% down on the back of forecast of normal monsoon rains and slack domestic demand. Guar extended its losses on predictions of favorable weather conditions for its crop.

IN FOCUS

- Monsoon is likely to be normal this year, the government said on Friday, allaying fears over an event crucial to the economic fate of the world's second-most populous nation. India's state-run firms had procured 18.01 million tonnes of wheat in the 2009/10 marketing season that began in April, a government release said on April 26. The procurement during the same period the previous year was 17.68 million tonnes.

- The government has procured 180.13 lakh tonnes of wheat during the current marketing season so far, an increase of 3.34 lakh tonnes over the same period last year.

- In view of the shortage in the water supply for the wheat crops in India, analysts have predicted a shortfall in the wheat production saying that it will not go beyond the 98 Lakh Tonne mark, this year. In the last week of March, an analysis on the irrigation conditions yielded the above conclusion, as there was very less amount of water supply attained through canals due to weak supplies of power.

- Churi and korma, the byproducts of guar seed, are used as cattle feed and demand generally picks up in summer with the shortage of green grass. Demand is good in physical market. But traders are now focusing on monsoon forecast (impact)

FUNDAMENTAL OUTLOOK

- Wheat is expected to trade steady today. Chana looks strong; buying at dips is recommended. We may see some bounce back in guar complex.

MARKET ROUNDUP 
- Spices traded in negative zone yesterday except turmeric. Mentha oil ended more than 3% down on profit booking. Cardamom and Pepper were down by more than 1%. Turmeric rose by 2% for a third straight day due to robust overseas and domestic demand.

IN FOCUS

- Cardamom futures prices rose by Rs 15.30 or 1.23 per cent at Rs 1,260 per kg in futures trade today largely on the back of pickup in demand in the spot markets.

- In order to curb speculation, leading commodity bourse MCX on Wednesday increased the amount (margin) investors need to deposit for trading in mentha oil futures by 10%. With this hike, effective from Wednesday, investors need to deposit 19% of the value of mentha oil they intend to take in. Earlier, the margin was only 9%. "As a risk management measure, the exchange has decided to levy a special margin of 10% on buy side in all mentha oil contracts," MCX said.

- Unexpected rain in second largest growing country Turkey after India may damage major part of the Crop of Jeera this year. That may tighten the total supply in the market by almost 15-20%.

- Pepper exports in February 2010 fell 3.22 percent to 1,500 tonnes 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.

- Shortage of Peeper in domestic and International market and Less carry forward stock tend to increase the prices of Pepper I medium term.

FUNDAMENTAL OUTLOOK

- We expect some bounce back in all the Spices today. Pepper and Jeera in particular look strong; buying at dips is recommended.