According to indications about 2.6 MMT of maize have been exported till date. Maize prices were close to Rs.8394 per MT at the market yard for the week ending June 27, about 1.3% above previous week’s close. By July 2 the prices had stated to come down and were down by 3% to Rs.8143 per MT at the market yard, probably due to the rumors of ban coming into place.

By the evening of July 04 the maize prices at the market yard were down to Rs.8067 per MT at the market yard a further down of about 1%. In two weeks the prices were down by about 3.9%.

The future markets crashed following the ban on maize exports. The markets were down by about 9% for Jul/Aug/Sept delivery in 2 days. The October delivery prices were down by about 5%. The spot prices at production centers are also down by about 1-3% depending on the location.

The lower prices will help the poultry and the starch sector in reducing cost of production, however, increased domestic demand could firm up maize prices before the ban deadline ends.

Gold
Gold prices rose by Rs 15 to Rs 13,100 per 10 grams on the bullion market in the weekend on fresh demand by retail customers in a week otherwise ruled by bearish sentiment in gold futures.

Investment demand for gold continues to be high, the reason for steady gold prices in recent times. Rising inflation concerns with soaring crude oil prices and weakening dollar is increasing the investment demand for the precious metals as inflation hedge.

The recent weakness in equity markets also induced the traders to shift some of their funds in commodities like Gold, silver and crude oil Gold futures on COMEX sharply declined on Thursday as dollar recovered against major currencies. Record firmness in crude oil prices failed to support the prices. Gold for August delivery on COMEX shed $12.90 to close the session at $933.60 an ounce.

Gold witnessed some profit booking on the last trading day of the holiday-shortened week after dollar recovered against major counterparts. At MCX, Gold 05 August contract was last traded at 13029 while at NCDEX the August 20 contract was last traded 13040.

Rubber
The physical rubber prices finished weak on Friday. RSS 4 moved down to Rs 132.50 a kg from Rs 133 a kg on buyer resistance. The prices were sustained during the week due to rising crude oil prices which continues to be the major reason for bullish trend in rubber prices. However, exporters and major manufacturers were hesitant to enter the market above Rs 132 a kg for sheet rubber, an analyst said.

Global indices were ruling much higher on Wednesday though they recovered partially on Friday from the declines on Thursday while domestic market remained closed on account of a harthal. It has been one of the major factors behind the day’s bearish mood.

Sentiments were also affected by subsiding monsoon rains as the unexpected change in weather might enhance latex production.

Natural rubber output rose 43 percent in June after the main growing region in Kerala received less monsoon rains, allowing growers to extract more latex. NR production in May rose to 62,000 metric tons, compared with 43,480 tons a year earlier. Demand rose 2 percent to 71,000 tons as users such as tyre companies bought more to replace synthetic rubber.

Guar
Guar futures are likely to be bullish in short-term on lack of rains and low acreage. Moreover, guar gum millers say there is a good demand for guar gum compared to previous years. The stock is also likely to be at 30 lakh bags.

The weakness in Rupee against the US dollar is also expected to support guar prices. Rupee has declined 10 per cent against the US dollar so far, thus encouraging the exporters of guar gum and guar powder. Similarly, the market is also witnessing good demand for guar gum and power due to record prices of crude oil. All these factors indicate that there are no signs of bearish trend in guar seed and guar gum prices in the domestic market

Shriganganagar, Hanumangarh, Churu, Bikaner, Naguar, Barmer, Jodhpur, Jaisalmer and Pali districts are among the major guar-producing areas in western Rajasthan. While Shriganganagar, Hanumangarh and Bikaner district have irrigation facility for guar cultivation, the other areas are totally dependant on monsoon rains. Monsoon has been evading Rajasthan so far causing the bullish trend in the short run for Guar as sowing has been delayed.

PEPPER
Spot pepper witnessed steady activity during the week. The prices for the garbled berries remained unchanged at Rs.14200/qtl. Improving prices induced slight arrivals at the physical market of 12 tonnes and around 11 tonnes were sold.

The underlying interest from the domestic grinders featured in the market for far month shipments. Internationally Vietnam eased slightly and ASTA grade remained was quoted down by $50/tonne at $3400/tonne f.o.b and 500 gl at $2920/tonne f.o.b. Steady demand and less matching arrivals at the auction may push up the prices further during the days ahead.
Technical analysis points to recovery at the futures country with a steady to weak opening next week.

Turmeric
Turmeric futures rose to new high in the weekend tracking a firm spot market and on slower pace of cultivation in the main producing states due to lower rainfall.

Sowing has been delayed as a result of less rainfall and this has given an opportunity for traders to speculate.

Main producing state, Andhra Pradesh, received lesser rainfall in mid-June, which delayed cultivation by two weeks. But relief was visible as some parts of the state received rainfall earlier last week but not enough to start cultivation.
Cultivation was also delayed in some parts of Maharashtra.

Turmeric cultivation starts with the arrival of monsoon rains in June in southern and western states, the major producers.

In Nizamabad, a key spot market in Andhra Pradesh, price rose Rs 28 to Rs 4,208 per 100 kg. The benchmark August contract on NCDEX hit new high of Rs 4,555 per 100 kg in afternoon trade. , but had given up part of the gains by the evening, when profit-taking emerged.

(Compiled with inputs from Angel Commodities, Mumbai)