Chilly remained subdued retracing most of the previous gains amidst lack of specific leads to propel the market either way. Jeera lost steam unable to stick its neck above Rs14,800 and eventually closed near 1 month lows.
Pepper extended its volatility making a fresh multi month low below Rs29,000, but managed to cover the losses. Turmeric exhibited a stealth recovery after week long range bound trade.
Prices made a 15 day high moving past Rs4,700.
US soy complex futures gained for the second straight session continuing to retrace earlier losses. Commodity friendly external market influences and confirmation of fresh export business with China fueled momentum.
Buyers were also encouraged by continued uncertainty about South American crop potential, as private forecasters continue to lower their crop estimates.
In this context, Brazil’s vegetable oil processors association (ABIOVE) cut their soy crop estimate as well downsizing the export forecast. The average crop expectations of various market agencies indicate a likely 3- 4mn ton drop in the SA soy crop this year.
Soybeans remain firmly planted within a month long wide trading range, with traders awaiting lasting fundamental direction to unfold as Brazil harvests begin.
Soy product futures ended slightly positive, rising in line with advances in beans and a weaker US dollar.
BMD was closed yesterday and opens today on the positive side attempting to race past MYR3,100. However, nearing the weekend and ahead of the key supply demand data scheduled for next week, an air caution engulfs the palm oil counters.
NCDEX and MCX edible oil prices posted meek gains led by a courtesy bounce back for the recent sharp declines. A stronger rupee could invite initial weakness in the near term.
Courtesy: IIFL
Looking for Trading Advisories? Visit tips.commodityonline.com
