Epic Research Daily Agri Commodity Report Of 8 June 2018

As per the latest weekly crop release by United States Department of Agriculture (USDA), the rating for the US corn crop declined 1% last week to 78% of the crop rated good to excellent. Eight states indicated that the corn condition had improved last week and 8 states indicated that the corn condition had declined last week. Most of the improvements were found in the western and northern Corn Belt while most of the declines were found in the southern and eastern Corn Belt. The top five rated corn states are: Minnesota, Wisconsin, Ohio, Illinois, and Kentucky.

In order to improve the problem of liquidity of sugar mills resulting in accumulation of huge cane price arrears of farmers, the Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the following measures involving total amount of about Rs. 7000 crore:Creation of buffer stock of 30 LMT of sugar for one year and to incur estimated expenditure of Rs.1175 crore for this purpose. However, based on the market price and availability of sugar, this may be reviewed by Department of Food & Public Distribution(DFPD) any time. The reimbursement under the scheme would be made on quarterly basis which would be directly credited into farmers' account on behalf of mills against their cane price dues.

The water storage available in 91 major reservoirs of the country for the week ending on June 07, 2018 was 26.742 BCM which is 17% of total storage capacity of these reservoirs. This percentage was at the same level for the week ending on May 31, 2018. The level of water storage in the week ending on June 07, 2018 was 83% of the storage of corresponding period of last year and 89% of storage of average of last ten years.The total storage capacity of these 91 reservoirs is 161.993 BCM which is about 63% of the total storage capacity of 257.812 BCM which is estimated to have been created in the country. 37 Reservoirs out of these 91 have hydropower benefit with installed capacity of more than 60 MW.

Economic News

Industry body Indian Sugar Mills Association (ISMA) thought welcomed the Cabinet’s decisions of extending a package of Rs 8,500 crore to help the sugar mills and cane farmers, it said that it may not impact retail prices significantly. “The decision to fix a minimum ex-mill sale price of sugar at Rs.29 per kilo will improve ex-mill prices from current levels of around Rs. 28 per kilo, but may not impact the retail prices in any significant way,” stated a release from ISMA. The industry Association has said that the proposed minimum price of Rs. 29 per kilo is not enough to cover the cost of sugarcane at FRP of Rs.290 per quintal at the current all India average recovery of 10.8%. “The ex-mill sugar price which supports the current FRP works out to around Rs.35 per kilo and therefore the Rs.29 is inadequate,” it said.

Technically Cardamom market is under fresh buying as market has witnessed gain in open interest by 14.58% to settled at 220 while prices up 5 rupees. Now MCX Cardamom is getting support at 878.2 and below same could see a test of 872.6 level, And resistance is now likely to be seen at 887.2, a move above could see prices testing 890.6. Cardamom on MCX settled up by 0.57% at 883.7 on short covering after prices dropped on reports of bumper output on the back of favourable weather amid poor stocks of quality goods. There has been raining in the producing centres of Kerala and present weather is conducive to the coming crop. Spice Board cut the number auctions due to falling arrivals at the auction centres. Producing centres of Kerala are getting good rains and monsoon is also expected to hit Kerala coast three days before schedule. India exported 4,180 ton cardamom valued at Rs 4.56 billion during April-December 2017, data from Spices Board showed. Cardamom will be auctioned once every day at e-auction centres in Tamil Nadu (NS:TNNP)'s Bodinayakanur and Kerala's Puttady from Monday till Jun 30, the Spices Board India said.

Trading Recommendations

SELL CORIANDER JUN BELOW 4200 TARGET 4180/4160/4140 SL 4230
SELL TURMERIC JUN BELOW 6880 TARGET 6850/6820/6790 SL 6920
SELL GUARGUM5 JUN BELOW 7280 TARGET 7250/7220/7190 SL 7320

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This release was published on openPR.