Epic Research Daily Agri Commodity Report Of 23 May 2018

India largest exporter of the Basmati Rice is set to gain acreage, as the farmers earned higher remuneration in the last season. Punjab second largest grower of Basmati, the area of Basmati is expected to increase by more than 20 percent as farmers are keen to grow more Basmati. Farmers in Basmati-belt states are growing more of the cereal instead of Cotton and regular Rice compared to the last year. The forecast of normal monsoon in India is also enticing farmers in Rice growing states of Punjab, Haryana, Western Uttar Pradesh and Jammu & Kashmir to grow more Basmati

Sugar prices rose by Rs 50-80 per quintal on market speculation that the government may create a buffer stock of about 30 lakh tonne of the sweetener and fix a minimum price for the sale of the commodity by the mill owners to traders in addition to probably bringing the release mechanism back. According to Bombay Sugar Merchants Association, Sugar prices have gone up on these market rumours of the possible creation of a buffer stock and fixing of a minimum price for sale of the commodity. Ex-mill Sugar prices on Monday were Rs 2,600-2,650 per quintal for S-30 grade and `2,660-2,750 per quintal for M-30 grade.

Procurement of Wheat by the Government agencies stood at 33.26 million tonnes as on 21st May 2018, exceeding the targeted 32 million tonnes for the 2018-19 marketing year (April-March). A Statement from the Food Ministry said that the purchases were higher by around 16% this year as compared with last year’s 28.72 million tonnes. Purchases have been higher in Punjab, Haryana, Madhya Pradesh and Rajasthan on higher market arrivals with the country witnessing a record Wheat output. As per the latest estimates by the Agriculture Ministry, wheat production is hitting a new high of 98.61 million tonnes (98.51 mt) against the targeted 97.50 million tonnes.

Economic News

Going far beyond the political arena, just concluded panchayat election has deeply impacted potato market in West Bengal, countries second largest producer of the tuber. Outcome of the impact is steep hike in potato price. Beginning from the metro city market to the deep rural areas, potato has touched too high retail level price of Rs 20 to 25 Rs a kg. “Reason lies in panchayat election,” said Gobind Kajariya, President of West Bengal Cold Storage Association. After potato harvesting season in February- March, large chunk of the stock goes to cold storages while the rest gets consumed straight from the field. The stock stored in cold storages starts coming out by May after the straight from field stock gets exhausted- he informed. “Against 115 Metric Ton (MT) production last year, this year’s output of the state remained around 100 MT. Out of this, around 70 Lakh MT found place in Cold storages leaving rest in field.

India’s largest listed hybrid seed maker Kaveri Seed Company (KSCL), which sealed a compromise deal with global seed giant Monsanto for BT cotton technology, has readied a war chest of Rs 500 crore for buyouts to fill product and technology gaps. The Hyderabad-headquartered company is also preparing to expand its business in high-margin non-cotton segment that include rice, maize and vegetable seeds, while eyeing at least 20-25% annual topline growth over the next three-five years. With substantial control over inventory write-offs in channel network now, the hybrid seed firm is also looking to improve profits and reward shareholders through buybacks, backed by huge reserves and surplus of over Rs 1,000 crore. “We have more than Rs 500 crore of cash reserves as at the end of March 2017 and have been earning an average of Rs 200 crore of cash reserves every year,” said executive director of the company, C Mithun Chand. “

Trading Recommendations

SELL CORIANDER APR BELOW 4570 TARGET 4540 4500 4450 SL BELOW 4620
BUY TURMERIC MAY ABOVE 7330 TARGET 7360 7400 7450 SL BELOW 7280
SELL GUARGUM5 MAY BELOW 8170 TARGET 8140 8100 8050 SL 8220

Epic Research Limited is a supreme level financial advisory services provider firm. We have designed services for different investors as per their needs like commodity tips , equity tips, agri tips and many more to serve our clients. We offer regular services for investors with less capital and premium services for massive investors looking for higher returns on investments with bigger targets.

Want to take a FREE TRIAL? Visit our site link below and become a part of our Epic family. Happy trading.

http://www.epicresearch.co/
or
mail us @ info@epicresearch.co

Also you can Whatsapp us at :7049084664

Our Office:411 Milinda Manor, 2 RNT Road, Indore 452001

411 Milinda Manor, 2 RNT Road, Indore 452001

This release was published on openPR.