Epic Research Daily Agri Commodity Report Of 23 July 2018

Garment manufacturers in Gujarat have predicted a rise of 10 per cent in the price of garments after the centre raised the Minimum Support Price (MSP) of Cotton. The centre raised the MSP on medium-staple and longstaple fiber Cotton by 28 per cent and 26 per cent, respectively. The MSP of Cotton (medium staple) was raised to Rs 5,150 per quintal from Rs 4020 per quintal and that of Cotton (long staple) to Rs 5,450 per quintal from Rs 4,320 per quintal. The increase in MSP will have a big impact on the prices of garments. In the run up to the upcoming festive season that extends till Diwali, we foresee a 8-10 per cent rise in cost of garments.

Drought like situation is faced in some parts of Uttar Pradesh (UP) due to a monsoon deficit, which is hitting Paddy plantation and posing a threat to the timely sowing of other kharif crops too. The plantation of Paddy, one of the state’s main crops has been delayed due to deficit rainfall. The time for sowing Paddy will be over after July 31. Paddy is grown on 59 lakh hectares. But the crop has been sown only on 30 percent land so far. The remaining plantation has to be done by the month-end, beyond which plantation of all varieties, except the Basmati, would be too late.

India’s Coffee output for the 2018-19 crop year starting October is set to shrink as unusual heavy rains have hit over the past several weeks in the key growing regions in Karnataka. These key regions have affected with fungal diseases such as black-rot, which results in rotting of leaves and berries and also there have been reports of excess berry droppings due to heavy rains. Karnataka accounts for over 70 per cent of the country’s Coffee output. Karnataka planters are grappling to deal with fungal disease, berry droppings. Even the shortage of labour is hurting the growers. India’s Coffee output which peaked to a record 3.48 lakh tonnes during 2015-16 has come down in the subsequent years on account of erratic weather pattern impacting the production.

Economic News

Tamil Nadu sugar mill owners and representatives have met Chief Minister Edappadi K Palaniswami seeking financial assistance and certain decontrol measures in the operations of sugar mills to tide over what they regard as "distressing" crisis following five years of less-than-desired rainfall in the state. The company officials met with the Chief Minister and presented a memorandum dated July 18, 2018. "Lower capacity utilisation, depressed sugar recovery and a massive fall in sugar prices have resulted in lower revenue generation," Palani G Periasamy, President of South Indian Sugar Mills Association told in the memorandum to the Chief Minister. Sugar rates have been touching lows for a year, but have risen from lows touched in May. The Indian Sugar Mills Association has predicted a higher output in the forthcoming Sugar season. The Centre has also announced a higher Fair and Remunerative Price for the farmers, fixed at Rs 275 a quintal for the 2018-19 sugar year. This does not augur well for states like Tamil Nadu where debtburdened sugar mills have found it difficult to pay lower FRPs.

Technically Cardamom market is under long liquidation as market has witnessed drop in open interest by 5.52% to settled at 137 while prices down 3.4 rupees. Now MCX Cardamom is getting support at 1114.4 and below same could see a test of 1102.7 level, And resistance is now likely to be seen at 1143.9, a move above could see prices testing 1161.7. Cardamom on MCX settled down by 0.3% at 1126.1 on profit booking after prices gained as there are fears of damage to standing crops and delay in new crop supplies. Rains have also impacted the new crops and supplies from the fresh crop would get momentum by the third week of this month, though scattered supplies have begun to pour in some of the auction centres. Stockists did not make buying on hopes of higher output and early commencement of new crop supplies.

Trading Recommendations

BUY CORIANDER AUG ABOVE 4800 TARGET 4820/4840/4860 SL 4770
BUY TURMERIC AUG ABOVE 7350 TARGET 7380/7410/7440 SL 7310
BUY GUARGUM5 OCT ABOVE 9400 TARGET 9440/9480/9520 SL 9350

Epic Research Limited delivers reliable trading advice for traders to fulfill their goals and return expectations is very true. Every day we work for 2 different things: thorough research on market movements & deliver those high efficiency calls timely to our clients and help them to make their investment at the right place. 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.

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

This release was published on openPR.