Jeera prices plummeted further losing over 9% since last Monday. Prices broke the crucial support of Rs14,800 but made a smart recovery closing a tad above it. An extended bout of liquidations amid steady arrival pace dampened the sentiment.
Pepper witnessed its biggest daily fall losing over 4% while making new 1 week low. A slew of factors such as absence of buyers at higher levels, muted global markets awaiting the return of Chinese buyers and a stronger rupee led to the massive weakness.
Chilly prices plunged further deep into the negative zone shedding more than 5% during the second half of the week. Increasing arrivals and lack of export enquiries remain as the major drawback weighing on the sentiment.
Prices made a fresh 15 day low before settling below the intermediate resistance of Rs6,150. lower but settled above the key support of the Mentha oil scaled new peaks to Rs1,610 supported by renewed buying interest.
Global veg oil markets remained lethargic post as lack of fresh leads weighed on the sentiment. Reports indicating the chances of rains in the hitherto drier regions of South America signaled a cautious tone to the prices.
External factors also remained sluggish with repeated failure of energy markets to thwart the US$100 mark amid a seemingly weaker USD index.
At the palm front, factors such as poor export performance, softening La Nina leading to limited production declines continue to depress BMD CPO futures.
Markets now await the release of the current month’s oil palm export data due for tomorrow which could decide the short term course of direction.
Domestic oilseed markets succumbed to the weak global cues and a steadily appreciating USD/INR which broke the 50 mark.
Currently, BMD CPO is trading lower by MYR13 at MYR3,122 just above the crucial support zone of MYR3,115-3,100. e-CME soy oil is lower at 51.4cents.
Courtesy: IIFL
Looking for Agri Research? Visit research.commodityonline.com
