MUMBAI (Commodity Online): Volatile pepper has lost its sheen while cardamom, chilli and turmeric have emerged as ‘attractive long term buys’ among agri-commodities at the start of the new season, according to Venkateswaran Karika, AVP of commodity research at India Infoline Ltd (IIFL).
Chilli prices at Natiional Commodity and Derivatives Exchange (NCDEX) are trading lower at 5900 levels and trying to find a bottom , cardamom could test multi year low. Pepper rallied to Rs 37000 levels last year and technically speaking, it had reached a long term channel and that has been broken. ‘Therefore, for pepper, we would suggest no buy calls but sell on rally and buy on dips,” Venkateswan Karika said.
Analysing the bearish oilseeds market, he said that kharif crop was quite promising but rabi crop has ran into problems. Rape seed output may fall to below 6 mn tonnes this year as against 6.8 to 7 mn tonnes a year ago.
Malaysian palm oil stocks are at two million tonnes while soybean sotkcs in US are at 275 mn bushels, any figure above 250 mn is bearish for the commodity. Us crops is lower on droughts but US soy bean exports have fallen more than 25% on month-on-month basis while soyoil exports hav e fallen 60% and more stocks are available in US.
At National Commodity and Derivatives Exchange (NCDEX), Turmeric April contract has gained 0.83% this wek to Rs 4614 per quintal, while Chilli February contract has declined 1.35% to Rs 5992 while MCX Cardamom Feb is ruling steady at Rs 671.70 levels. Pepper February has fallen 5.46% to Rs 29500 per quintal on close of trading on Thursday.
