Guar weakness only temporary
Guar: Weakness only temporary
Although European Union (EU) has made pentachlorophenyltest mandatory for guar gum shipments from India, exporterssaid this test to check presence of toxic substances will havelittle impact on exports or prices. Of the total guar gumshipped from India, only 10-15% is used by the EU in thefood industry. As such, it would not largely affect exports.Traders are expecting a rise in export demand by the month-end as worldwide demand for guar gum and its by-productshave been increasing significantly.
Chana: Demand absent in spot
Chana futures on National Commodity and DerivativesExchange (NCDEX) ended down on higher arrivals coupledwith subdued demand in spot market. Arrivals in Delhi havegone up to 35 trucks (18-20 tonne each), mostly from MadhyaPradesh, compared with 25 trucks a day last week. Very lowoff-take of chana dal has kept millers and traders away fromthe market, which is reflected in 1% fall in price amid subduedtrade. Bikaner chana opened firm but declined subsequentlyby 1% to close at 2,660 rupees per 100 kg on lack of enquiriesfrom north India. Katawala chana at Indore was down by 60rupees at Rs2,580-2,590 on rise in arrivals and expectationof a further increase in arrivals. The counter is likely to seesome more selling at higher levels.
Soy oil: Global sell off
The edible oil complex ended down on NCDEX amid higherimports and weak closing in Malaysian palm oil prices. India'shigher edible oil imports during the first four months of thecurrent oil year kept the market sentiment down. Domesticedible oil prices reflected the weak sentiments in Malaysianpalm prices where funds went for short positions taking cuesfrom THE weakness in soy oil prices in the 24-hour onlinetrade on Chicago Board of Trade (CBOT). This morning tooboth CBOT soy oil and Malaysian palm oil were trading indeep red. Local prices should remain subdued today too.
Jeera: Buying opportunity expected at dips
Jeera is likely to trade range-bound with weak undertone inshort term on the back of increasing arrivals of fresh crop inthe market yards amid higher production outlook. Higheryield and good acreage in Gujarat is likely to yield around2.11 lakh tonne in 2008 against 1.67 lakh tonne last year.Arrivals are reported at 18,000-20,000 bags of 70 kg asagainst 7,000-10,000 bags a fortnight ago. Buyers are
Sharekhan Commodities Pvt. Ltd.
A-206, Phoenix House, 2nd Floor, Senapati Bapat Marg, Lower Parel, Mumbai - 400013, India.
For Private Circulation onlywaiting for further decline in prices. Therefore, expectedincrease in domestic as well export demand is expected tosupport the market at lower levels and would resist againstmajor falls. Jeera export in April-January period is lower by10% as against that of the last year.
Turmeric: Prices unlikely to dip sharply
Turmeric prices are unlikely to sustain at further lower sideon lower production amid good demand at lower price level.Turmeric output during the current season is expected todecline around 7.5 lakh tonne, against 8.9 lakh tonne lastyear. However, daily inflows of turmeric in the physicalmarket at Nizamabad mandi are around 15,000 bags (1bag=70kg) as against 7,000 bags last week and are stillresisting the uptrend. Stockists are keeping themselves atsidelines at higher price level. However, price is notexpected to see major dips, as the output is lower this yearamid good global demand. Further, buying support by APMarkfed at Rs3,000 per quintal from local market is likelyto support the market. Turmeric export in the period ofApril-January is still lower by 6% as against that of the lastyear.
Chilli: Tone still weak on increasing arrivals
Chilli prices are extending its southwards journey owing toweak fundamental. Increasing arrivals of good quality cropcombined with good carry over stock are underpinning themarket tone. Increasing arrival of fresh crop are weighingthe prices. Guntur spot market has seen arrival of around1,00,000 bags (1 bag=40-45kg) for last couple of days ascompared with the daily average arrivals of 70,000-80,000bags during the last week. Chilli sanam spot prices alsoquoted almost steady at Rs3,200-3,400 per quintal. Chilliproduction this year is expected to be higher around 13lakh tonne as against 11.5 lakh tonne last year. Carry overstock from previous year is estimated around 1.5 lakh tonne.In this scenario, farmers and stockiest are offloading theirexisting stocks. With the absence of firm fundamental inshort term, most of the buyers in the spot markets arekeeping themselves at sidelines on the speculation of furtherdecline in prices. However, good export opportunity maysupport the market from dips, as the green chilli crop inPakistan was hit by severe cold that affected the supply.Karachi wholesale market green chilli price has shot up to arecord Rs180 [US $3] per kg.