Turmeric likely to decline on higher arrivals

Last Updated : November 03, 2011 10:11

MUMBAI (Commodity Online): Turmeric rates fell in the Spot and the futures markets as lower demand amidst moderate arrivals kept pressurizing the market sentiments. Prospects of demand rising in coming weeks could limit the downtrend however.

Traders expect the trend to remain volatile in the short term as improved production prospects and higher stocks could keep the prices under check to some extent.

Rains in growing areas in Andhra Pradesh and other nearby states have been pressurizing prices in apprehension of better crop prospects. Improved arrivals in AP have kept further pressure on the prices.

Good Monsoon reports in AP has reportedly keeping the sowing activities proper. The area sown would however depend on market rates and if falling trend continues, traders expect the sowing area may fall as farmers may shift to other lucrative crops like cotton, soybean etc.

The total production this year is expected to touch 75-85 lakh bags (1 bag-75kg) - higher than the 65-70 lakh bags in 2010-11. Higher acre-age from the high rates is stated the reason for the rise in expected production as per traders.

Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak for the commodity over the last few weeks. The sowing period is from June-August and harvesting begins in January.

Exports that had remained low are however expected to rise in coming weeks from Europe, US, West Asia and Japan.

Latest reports from Spice Board of India indicates the expected Turmeric exports for the period April-August 2011 have risen by 52% to 36,500 MT in 2011 from 24,000 MT in 2010 same period.

Courtesy: Religare Commodities

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MCX crude oil declines on higher inventory and weak China

Last Updated : November 03, 2011 11:41MUMBAI (Commodity Online): MCX Crude Oil is trading lower by 0.64% on Thursday morning trade on higher than expected US inventories and weakening Chinese manufacturing activity.

MCX crude oil November is trading at Rs 4512 after opening at Rs 4534 while NYMEX WTI crude oil December is trading at $91.56, down $0.95.

-The EIA reported that the US crude oil inventories had rise by 1.8 million barrels against the market expectations of a lower 1.4 million barrels. A higher than expected inventory buildup indicates weakening demand.

-Chinese manufacturing and non manufacturing activity slipped for the month of October as their PMI's indicated. China is one of the major consumers of Crude Oil and as such any negative news from the country will affect oil prices.

Technical Target by Angel Commodities for Nov 3

Support seen at Rs 4418 and Rs 4480 while Resistance expected at Rs 4573 and Rs 4667

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Turmeric likely to decline on higher arrivals

Last Updated : November 03, 2011 10:11

MUMBAI (Commodity Online): Turmeric rates fell in the Spot and the futures markets as lower demand amidst moderate arrivals kept pressurizing the market sentiments. Prospects of demand rising in coming weeks could limit the downtrend however.

Traders expect the trend to remain volatile in the short term as improved production prospects and higher stocks could keep the prices under check to some extent.

Rains in growing areas in Andhra Pradesh and other nearby states have been pressurizing prices in apprehension of better crop prospects. Improved arrivals in AP have kept further pressure on the prices.

Good Monsoon reports in AP has reportedly keeping the sowing activities proper. The area sown would however depend on market rates and if falling trend continues, traders expect the sowing area may fall as farmers may shift to other lucrative crops like cotton, soybean etc.

The total production this year is expected to touch 75-85 lakh bags (1 bag-75kg) - higher than the 65-70 lakh bags in 2010-11. Higher acre-age from the high rates is stated the reason for the rise in expected production as per traders.

Good stocks and increased selling pressure along with weak demand in the mandis have kept trend weak for the commodity over the last few weeks. The sowing period is from June-August and harvesting begins in January.

Exports that had remained low are however expected to rise in coming weeks from Europe, US, West Asia and Japan.

Latest reports from Spice Board of India indicates the expected Turmeric exports for the period April-August 2011 have risen by 52% to 36,500 MT in 2011 from 24,000 MT in 2010 same period.

Courtesy: Religare Commodities

View the original article here

Guar seed to edge higher on low production estimates

Last Updated : November 03, 2011 10:20

MUMBAI (Commodity Online):Rates shot up for Guar yet again on rising demand, low production and stock prospects. Increased arrivals limited uptrend to some extent.

New crop arrivals start fro Haryana. Rajasthan arrivals yet to pick up.

As per First Advanced Estimates of Kharif Crop in Rajasthan, the sowing area is 29.07 lakh hectares compared to 30 lakh ha last year. Production expected at 11.37 lakh tonnes vs 15.46 lakh tonnes in 2010-11(Directorate of Agriculture, Rajasthan).

Traders estimate that in Haryana too the sowing area has fallen to 2.15 lakh ha vs 2.56 lakh ha last year. Production expected at 2 lakh tonnes while in Gujarat, production estimates at 0.65 lakh tonnes.

Better rains in Rajasthan and Gujarat are however expected to improve productivity of the crops this year.

As per APEDA, India has exported 1.45 lakh MT Guar Gum during April-June 2011 vs 0.71 lakh MT during same period last year. Traders expect overall exports to pick up in coming months and cross the 3 lakh tonne mark.

Financial problems in US and EU are worrisome howev-er on export front. It needs to be noted that rates have come down significantly over last 1 month due to lower export demand

Fresh arrivals of the new crop could pressurize the market sentiments to some extent in the short term. However, if exports pick up again, we could see some recovery from these lower levels.

Lower carryover stock and delayed harvesting along with reports of a fall in production and a likely pickup in exports could support the prices. A strong Dollar vs Re could have a beneficial impact on the export front.

Firm Crude Oil prices could have positive impact on the Guar gum export front.

Courtesy: Religare Commodities

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MCX gold edges higher support at Rs.27650 27420: Angel

We expect gold and silver to trade on a positive note today on account of dollar weakness.
Gains in gold are also expected to be driven on the back of inflationary expectations, thus supporting the safe-haven asset even in times of risk appetite.
MCX Gold Dec’11 Rs/10 gms support:27650/27420 resistance:28075/28305
MCX Silver Dec'11 Rs/kg support:56866/55744 resistance:58980/60100
Courtesy: Karvy Commtrade Ltd.
Get Trading Tips that suits your profile and budget at tips.commodityonline.com
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NCDEX jeera edges higher on bargain buying

Last Updated : October 28, 2011 15:00

MUMBAI (Commodity Online): Jeera futures rose Friday on bargain buying by the traders on the back of firm demand in the local markets for the ongoing festive seasons.

At NCDEX jeera November contract is trading at Rs.14700 per quintal, higher by 1.52 per cent on 14:55 IST against the previous close.

In the early session the contract traded at a range of Rs.14419-14846 per quintal. Open interest of the contract is 16692 lots and volume traded is 4044 lots for the time being.

No new Fundamental reports were there as Unjha mandi remained closed for Festival this week, Jeera traded with high volatility.

Latest reports from Spice Board of India indicates the estimated exports of Spices for the period April-August 2011 have fallen by 23% from 255,100 MT in 2010 to 195,500 MT in 2011. Jeera exports fell by 39% from 15,700 MT to 9,500 MT during the same period.

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Pepper likely to move further higher on active buying

Last Updated : October 28, 2011 10:46MUMBAI(Commodity Online):Pepper rates recovered moderately from the lower levels as low level buying activities were reported in the mandis.

Traders expect fall in rates over last few days have been significant and an expected rise in exports in coming weeks could support the price further.

Slight improved production prospects from Kerala and Karnataka and arrival of the new crop could limit the uptrend.

Overall Fundamentals remained firm however from lower stocks and lower production amidst expected rise in export demand n coming weeks

Exports and domestic demand from North India remained good. Traders expect that with low stocks, lower global production and rising export demand, trend is likely to remain Bullish for the commodity from a medium to long term point of view.

Strengthening in the Dollar vs Re rates could have beneficial impact on the export front. But short term correction possibilities remain.

Traders expect that good demand and a firm trend in Vietnam could support the rates further. Good demand from Gulf countries sup-porting the rates. Demand from China and West Asia also reported.

IPC has predicted 2011 crop to be lower by 2% at 309,952 MT. Carryforward stocks are expected to decline marginally to 94,582 MT vs 95,442 MT. Global exports have declined by 11% to 237,650 MT. Indian production expected to decline to 48,000 MT.

Vietnam is having low stocks as per reports. The production there too is expected to fall this year as per some estimates. Brazil and Indonesian crop expected to be lower. Low carryover stock in Brazil and Indonesia is likely to raise exports here in coming months.

Reports of farmers shifting to other more profitable crops have affected the production aspects for the crop in India.

Latest reports from Spice Board of India indicates the likely Pepper exports for the period April-August 2011 have risen by 12% to 8.750 MT in 2011 from 7,800 MT in 2010 same period.

Courtesy: Religare Commodities

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