Epic Research Daily Agri Commodity Report Of 7 June 2018

The Union Minister for Consumer Affairs, Food & Public Distribution held a Press Conference to brief about the initiatives and reforms done by the Ministry in last four years in New Delhi on Tuesday. During the release, Union Minister stated that during Rabi Marketing Season (RMS) 2018-19, a quantity of 347 Lakh MT of wheat was procured which is highest in last five years. While during Kharif Marketing Season (KMS) 2016-17, a record quantity of 381.06 Lakh MT of paddy (in terms of rice) was procured. A total storage capacity of 22.23 lakh MT has been added during last four years under the PEG Scheme.

NCDEX Soybean witnessed continued selling pressure after falling to a fresh contract low yesterday. The counter has extended a downturn following the weather outlook of late. Rainfall is expected to mark an early presence in major soybean harvesting regions and farmers should prop up the sowing of the oilseed. The NCDEX Soybean futures for July are currently trading at Rs 3522 per quintal, down 0.31% on the day after testing a low of Rs 3516 per quintal. Prices had tested a low of Rs 3438 per quintal yesterday. However, highs around Rs 3570 acted as a stiff resistance for the counter and it pulled back, falling around 1% in intraday moves.

Maharashtra government has decided to pay Rs 1,000 per quintal to Tur and Chana growers, since both the commodity have plagued low price throughout the season. Chief Minister made this announcement after a cabinet meeting in Mumbai on Tuesday. Tur and Chana have traded below their respective MSPs of Rs 5,400 and Rs 4,400 per quintal. Last year’s stock and low uptake is being blamed for the price slide. Sources in the trading sectors, said the move might not be fruitful, as wholesale prices were at an all-time low.

Economic News

India has decided to build a 3 million tonne stockpile of sugar to soak up excess supply from the domestic market, and grant soft loans worth 44.4 billion rupees ($661.40 million) to help millers expand ethanol output capacity, the food minister said. The government has also fixed a floor price of 29 rupees a kilogram to ensure that retail rates of sugar do not fall further, Ram Vilas Paswan told a news conference after a cabinet meeting chaired by Prime Minister Narendra Modi.Paswan on Tuesday said the government would announce support measures to cut a growing sugar surplus and prop up local prices, a move aimed at helping loss-making mills and millions of cane growers who make up a key voting bloc.

Technically Mentha Oil market is under fresh buying as market has witnessed gain in open interest by 4.7% to settled at 846 while prices up 45 rupees. Now MCX Menthaoil is getting support at 1171.6 and below same could see a test of 1139 level, And resistance is now likely to be seen at 1221.2, a move above could see prices testing 1238.2. Mentha oil on MCX settled up by 3.88% at 1204.3 on rise in demand from the consuming industries at the spot market. Further, restricted supplies from the major producing belts of Chandausi in Uttar Pradesh too supported mentha oil prices’ uptrend. Anticipation of bumper crop harvest and nearing of harvesting season also weighing on prices. As per preliminary estimates, acreage under mentha crop will rise this year as the farmers are encouraged by higher price in recent past. As per trade sources, all the major markets are likely to witness higher inflow of the produce in the month of May. There could be chances of crop damage to certain extend due to unfavourable weather condition. Besides, farmers are likely to hold back the stocks as the present prices are not remunerative for them. However, in recent years, the growth in production and consumption of synthetic mentha has influenced the demand for natural mentha.

Trading Recommendations

SELL CORIANDER JUN BELOW 4250 TARGET 4230/4210/4190 SL 4280
SELL TURMERIC JUN BELOW 6910 TARGET 6880/6850/6820 SL 6940
SELL GUARGUM5 JUN BELOW 7300 TARGET 7280/7260/7240 SL 7330

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