Commodities » Agricultural

Agricultural commodities daily review: India and other countries (February 14, 2012)

Contributed by Nirmal Bang

OIL AND OIL SEEDS COMPLEX

MARKET ROUNDUP
Soy oil ended higher by 0.62%. Palm oil ended higher by 0.10%. RM seed ended higher by 1.01%

IN FOCUS
Indian soybean and soy oil futures ended flat on Monday as a strong rupee shrugged off gains in the overseas markets, while rapeseed fell on arrivals from the new crop. In the Indore spot market, soy oil eased 0.15 rupee to 698.1 rupees per 10 kg, while soybean edged up 9 rupees to 2,515 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed fell 63 rupees to 3,345 per 100 kg.
U.S. soybean growers will plant 74.0 million acres of soybeans this year and harvest 3.215 billion bushels, projected the Agriculture Department on Monday. The projections were based on conditions in late 2011 and will be updated at USDA's annual Outlook Forum on Feb 23-24.

FUNDAMENTAL OUTLOOK
Outlook for Soybean is seen down for the day. CPO is expected to trade lower.

GUAR, PULSES AND GRAINS COMPLEX

MARKET ROUNDUP
Guar Seed ended higher by 4%. Guar Gum ended higher by 4%. Chana futures ended lower by 0.96%.

IN FOCUS
Guar seed futures hit the maximum permitted daily upper limit of 4 percent and touched a new record high for the second straight session, despite concerns that higher prices may pull down overseas demand and regulatory steps to curb volatility. In the Jodhpur spot market, guar seed rose 1,028 rupees to 14,151 rupees per 100 kg.
Chana futures extended losses for the second straight session on profit-taking following the sharp rise in price and on rising arrivals in the spot markets. The contract has risen nearly 7 percent since the beginning of this month. In the Delhi spot market, Chana fell 99 rupees to 3,540 rupees per 100 kg.

FUNDAMENTAL OUTLOOK
Guar Complex is expected to trade lower for the day. Outlook for Chana is up for the day.

SPICES COMPLEX

MARKET ROUNDUP
Turmeric ended lower by 2.84%. Jeera ended lower by 0.73%. Pepper ended lower by 1.37%.

IN FOCUS
Jeera futures fell on a weak export demand, higher inventories and an expected increase in supplies from the new crop. Jeera is cultivated during winter from October to December and harvesting starts from February. Cumin sowing rose 50 percent on year to 368,000 hectares in Gujarat as on Jan. 16. In the Unjha spot market, Jeera rose 22 rupees to 14,952 rupees per 100 kg.
Turmeric futures fell on profit-taking driven by an estimated rise in production, though good demand in the spot market limited the downside. At Nizamabad, turmeric rose 143 rupees to 4,950 rupees per 100 kg.
Pepper futures extended losses for another session weighed by rising arrivals in the local market. In the Kochi market in Kerala, pepper rose 85 rupees to 30,906 rupees per 100 kg. Supplies have started in small quantities from the new season crop and could peak in another 15 days in southern Kerala and Karnataka states. Industry officials are estimating 43,000-45,000 tons of domestic pepper output for 2012, compared with 49,000 tons last year.

FUNDAMENTAL OUTLOOK
Outlook for Jeera is down for the day. Pepper futures to trade lower for the day.