Fortune Agro Commodities News Letter Thursday, May 02, 2013 Spot Market Update Commodity Last NetChg Chana Delhi 3420 50 Chilli Guntur 5400 0 Yellow Peas Kanpur 2810-5 Dhaniya Kota 6700 100 Gur Muzzafar 1180-25 Wheat Delhi 1460 0 Ref Soy Oil Indore 735-3 Soy Meal Indore 35500 500 Turmerric Nzm 6000-400 Jeera Unjha 13600 0 Kapas Sr Ngr 900 0 Mentha Oil Chandausi 988-28 MustarSeed 640-5 Soy Bean Indore 3965 15 Pepper Kochin 35500 0 Market Overview Soybean futures on National Commodity and Derivatives Exchange ended up on short covering after sharp fall in prices over the past two sessions. Sharp gains in overseas markets amid tight supply situation also forced domestic short-sellers to cover positions today. Soyoil futures also traded firm tracking gains in raw material prices, but ended in the red on a bout of profit sales in late noon trade on talk of import deals for June delivery. Crude palm oil futures on MCX ended down factoring 0.8% gains in rupee against the dollar even as benchmark Malaysian palm oil futures ended up 0.5%. Mustard ended flat as weak spot market erased early gains in futures amid sluggish demand for rapeseed meal. Mentha oil futures ended lower on thin demand. Among spices, chilli futures ended on a mixed note. The most active June contract ended higher on short covering. However, July and August ended down tracking cues from the spot market where prices declined on subdued demand from bulk buyers, coupled with the inferior quality of the spice. However, the fall in prices is expected to be limited, as the arrival season is coming to an end. Despite weak demand outlook for spice, most jeera futures gained today on limited supply in spot market. Coriander futures ended down over 1% on sluggish demand in the physical markets. Turmeric futures ended firm on short covering. Positional View Pepper futures are expected to trade lower next week due to subdued demand amid uncertainty regarding the launch of new contracts on NCDEX. Technical Snapshot Trend Commodity Expiry LTP Volume OI S2 S1 PV R1 R2 Intraday Chana 5/20/13 3433 43,230 85,400 3380 3407 3427 3454 3474 Positive Jeera 5/20/13 12910 5,406 8,103 12743 12827 12888 12972 13033 Positive Corriender 5/20/13 6868 20,710 18,640 6760 6814 6915 6969 7070 Negative Chilli 6/20/13 6306 20,365 20,365 6207 6257 6307 6357 6407 Sideways Pepper 5/20/13 35580 819 819 35187 35383 35522 35718 35857 Sideways Turmerric 5/20/13 6398 10,880 15,965 6259 6329 6399 6469 6539 Positive RM Seed 5/20/13 3452 38,380 62,810 3421 3436 3461 3476 3501 Sideways Ref Soy Oil 5/20/13 717.6 73,460 73,460 710.3 713.9 721.2 724.8 732.1 Sideways SoyBean 5/20/13 3914.5 36,220 36,220 3829 3872 3923 3966 4018 Positive Cardamom 5/15/13 809 1,985 1,985 788 798 813 824 839 Negative Cotton 5/30/13 18330 1,577 6,766 18203 18267 18373 18437 18543 Sideways Mentha Oil 5/30/13 955.4 2,523 2,438 942 949 959 965 975 Negative Potato 5/15/13 995 279 279 976 986 1001 1011 1026 Negative CPO 5/30/13 458.6 3,978 3,799 454 456 459 461 464 Sideways Ph: 02240273666 Email: commodity@ffsil.com website: www.fortune.co.in Page 1 of 5
Soya Bean and Oil Complex Soybean futures on the National Commodity and Derivatives Exchange today ended up over 1% tracking gains on Chicago Board of Trade coupled with tight supplies in domestic market. Soybean futures on CBOT ended nearly 3% higher on Monday followed by another 1% rise in Asian trade today. Better-than-expected export inspection data, likely delay in soy plantings due to forecasts of wet conditions in the US and strong soymeal demand pushed up soybean. Reports that US Midwest corn planting was just 5% so far, compared with 49% a year ago raised concerns that soy planting would also be delayed on similar lines. In domestic market, soybean arrivals were up by 10,000 bags in Madhya Pradesh to 45,000 bags of 100 kg each while the same in Maharashtra and Rajasthan were almost unchanged at 30,000 bags and 12,000 bags respectively. However, overall supply still remains much lower than the raw material requirement of oil mills. Spot soybean in Indore was being auctioned in a broad range of 3,800-3,950 rupees per 100 kg at Indore as large number of varieties were offered by traders, an official at a local edible oil company said. Monday, auctions were done in a range of 3,900-3,950 rupees per 100 kg. Soyoil futures traded firm most of the session tracking strong demand in physical market, but a bout of profit booking in the late-noon trade dragged prices lower. Nearly 0.8% gains in rupee against the dollar and talk of some import deals of soyoil for June delivery also dampened the sentiment of soyoil traders. In Indore, refined soyoil also opened up at 740 rupees per 10 kg, but ended flat from Monday at 735 rupees. Mustard futures also traded firm tracking gains in soybean in first half of the trade, but weak demand in spot in absence of stockists' support erased entire gains and the oilseed ended unchanged on NCDEX. Spot mustard in Jaipur ended at 3,455-3,475 rupees per 100 kg, down 30 rupees from Monday. Crude palm oil futures on MCX ended down factoring sharp gains in rupee against the dollar even as benchmark Malaysian palm oil prices ended 0.5% higher. Benchmark July crude palm oil on Bursa Malaysia Derivatives ended at 2,286 ringgits (40,385 rupees) per tn, up 13 ringgits from close Monday, but down from session high of 2,302 ringgits due to weak export data. Ncdex Soy Oil future contract is expected to remain Sideways on chart, traders are advised to Stayaway and intraday resistance is seen near 724.83, 732.07 & 735.73. Intraday support is seen near 713.93 710.27 & 703.03 Ncdex Soy bean future contract is expected to remain Positive on chart, traders are advised to buy and intraday resistance is seen near 3966.00, 4017.50 & 4060.50. Intraday support is seen near 3871.50 3828.50 & 3777.00 Ph: 02240273666 Email: commodity@ffsil.com website: www.fortune.co.in Page 2 of 5
Spices Coriander contracts on the National Commodity & Derivatives Exchange closed over 1% lower due to sluggish demand in physical markets, while turmeric futures gained support from short covering. The near-term outlook for coriander is bearish as traders are refraining from bulk purchases as they expect prices to fall further. Chilli futures ended mixed. The most-active June contract ended higher on short covering. However, July and August contracts ended down taking cues from spot market. Subdued demand from stockists and lack of export orders, coupled with the inferior quality of the spice, are likely to weigh on chilli prices. Even though demand outlook for jeera is weak, most jeera futures gained today due to lower arrivals in spot market. In key Unjha wholesale market, exchange-deliverable quality of jeera quoted 12,800 rupees per 100 kg, up 100 rupees from Monday's close. Jeera arrivals in Unjha market were estimated at 20,000 bags (1 bag = 55 kg) today, compared with 23,000 bags on Monday. Pepper futures edged higher due to covering of short positions by investors. Uncertainty over the launch of new contracts on the exchange,however, limited a sharp rise in prices. Technical recovery also lifted turmeric futures today. In key Nizamabad wholesale market, however, turmeric quoted 6,500 rupees per 100 kg, largely unchanged from the previous close. Sluggish demand from stockists and lack of export demand may drag turmeric prices down in the near term. Cardamom futures on MCX ended lower due to profit booking. Prices had gained in the previous session as sentiment was boosted by Food Minister's comments that south India may receive below normal rainfall. Ncdex Jeera future contract is expected to remain Positive on chart, traders are advised to buy and intraday resistance is seen near 12888, 12972 & 13033. Intraday support is seen near 12827 12743 & 12682 Ncdex Pepper future contract is expected to remain Sideways on chart, traders are advised to Stayaway and intraday resistance is seen near 35718, 35857 & 36053. Intraday support is seen near 35383 35187 & 35048 Ph: 02240273666 Email: commodity@ffsil.com website: www.fortune.co.in Page 3 of 5
Mentha Oil Mentha oil arrivals at the Sambhal market in Uttar Pradesh were estimated at 25 drums (1 drum = 180 kg) so far today, down from 35 drums Monday. The price of mentha oil at Sambhal market fell to 1,035 rupees per kg from 1,055 rupees per kg Monday. The prices have fallen because demand for mentha oil at the moment is very poor. Hopefully after May 15 when new crop arrivals begin, demand may increase. On the MCX, mentha oil May contract was at 961.50 rupees per kg, down 7 rupees from the previous close, while the June contract was at 954.50 rupees, down 3.70 rupees. MCX Mentha Oil future contract is expected to remain Negative on chart, traders are advised to sell and intraday resistance is seen near 965.20, 975.00 & 981.50. Intraday support is seen near 948.90 942.40 & 932.60 Ph: 02240273666 Email: commodity@ffsil.com website: www.fortune.co.in Page 4 of 5
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