Turmeric likely to trade with a downside bias; Sugar may consolidation range
Commodity Online | August 31 2016
UPDATED 09:40:56 IST

NCDEX Chana under long liquidation; Support seen at 4100

MCX Mentha Oil likely to move in a range of 978.4-1005.4

MCX Cotton under short covering; Support seen at 15870

MCX Aluminium may trade between 136-137.8 levels

NCDEX Jeera under short covering; Resistance seen at 13820

Turmeric futures (Sept) is likely to trade with a downside bias & in the range of 7300- 7600 levels. The arrival of turmeric is low at the spot markets, but it is not making any impact in price of the turmeric, as the demand is not improving. Only 2,500 bags arrived and the sale was around 65 per cent. At the Erode Turmeric Merchants Association, the finger turmeric sold at Rs.7,406-8,615 a quintal; the root variety Rs.7,233 to Rs.7,788 a quintal.

Cardamom futures (Oct) is likely to witness consolidation in the range of 1160-1230 levels. Special margin of 5% on long (buy) side will be imposed on all existing/ running contracts of Cardamom with effect from Tuesday, August 30, 2016. At the spot markets, following a sharp rise in prices, which crossed the Rs.1,000/kg mark, major dealers stayed away from the market. At the Cardamom Planters Association, Santhanpara auction, in Bodinayakannur on Monday, the average price increased to Rs.945.11 a kg from Rs.928.28 last Monday. Total arrivals stood at 19.2 tonnes and of this 17.1 tonnes were sold. The maximum price was Rs.1,239/kg.

Jeera futures (Sept) is likely to trade sideways in the range of 17500-18050 levels. The downfall may get limited due to tight supply amid lower crop. India is a major supplier of cumin in the international market and likely to dominate in the near term as well due to unrest in Syria and Turkey.

The downtrend in soybean futures (Oct) is likely to continue as it can descend down further & test 3250-3200 levels. A weak trend continued in soybean prices in major spot markets on Tuesday due to prospects of better crop this season amid favorable weather condition in most of the producing states. According to agriculture ministry, soybean sowing has been completed in 112.08 lakh hectare as on 25-Aug against 114.17 lakh hectare during same period last year. Soybean prices at spot market traded in range of Rs 3,000-3,500 per 100kg in Maharashtra and Madhya Pradesh, depending on quality of the seed. CBOT, U.S. soybeans fell for a seventh consecutive session on Wednesday as expectations for a bumper crop pushed the oilseed towards to near one-month low touched in the previous session. The most active soybean futures on the Chicago Board Of Trade fell 0.2 percent to $9.48-3/4 a bushel, having closed down 1.4 percent on Tuesday when prices hit $9.46-1/2 a bushel - the lowest since Aug. 2. Soybeans are under pressure as improving U.S. crop ratings fuelled expectations for a bumper harvest.

The downtrend in mustard futures (Sept) may get extended towards 4500-4480 levels. Mustard seed declined to fresh 11-month low on Tuesday at the benchmark Jaipur market of Rajasthan due to lackluster off take in mustard oil. In addition to it, crushing is still in disparity due to which millers are buying only as per requirement.

CPO futures (Sept) is likely to fall towards 535 levels & witness some profit booking from higher levels, while refined soy oil futures (Oct) might fall towards 630 levels as sentiments of edible oil complex on the international markets have turned bearish on better than expected yields and big crop size of soybean.

Kapas futures (Apr) might witness further downtrend & test 865 levels. Cotton prices dropped second straight day by Rs 200-300/candy (356kg each) in Gujarat, Maharashtra and Madhya Pradesh due to slow demand from spinners and millers. Major buyers are sideline and now eyeing on development of new crop progress, which is growing well under favorable weather conditions. Mills have opted to buy cotton as per immediate requirement as some more correction is likely as new crop production is said be more or less similar to last year’s level despite fall in acreage due to improvement in yield.

Sugar futures (Oct) is expected to witness consolidation in the range of 3450-3520 levels. The sentiments are bearish due to bearish sentiments prevailing on the international market & buyers are cautious in the domestic markets as government is keeping a watch on the sugar prices. Raw sugar futures on ICE fell for the first time in four sessions on Tuesday as the strong pace of production in Brazil kept the market on the defensive while physical demand remained sluggish. October raws settled down 0.15 cent, or 0.7 percent, at 20.52 cents per lb.

The sentiments of Mentha Oil futures (Sept) are bearish & hence the counter is expected to trade with a downside bias towards 870 levels. Activities in the spot markets are very poor with exporters are sidelined or doing only need base buying.

Guar complex are expected to remain in bearish zone as demand for guarseed and guargum is muted in the spot markets. Buyers are hesitant and waiting for more clear in front of demand and mainly Guargum from foreign market.

Courtesy: Smc Comtrade