Epic Research Daily Agri Commodity Report Of 31 May 2017

Commodity News

Jeera futures traded higher on NCDEX, supported by increased
buying by retailers and stockists at the spot market. Moreover, firming
trend in futures market and lower stocks following restricted supplies in
the domestic market also added support to jeera prices’ uptrend. The
contract for June delivery was trading at Rs 17650, up by 1.00% or Rs
175.00 from its previous closing of Rs 17475. The open interest of the
contract stood at 8967 lots.

Turmeric futures traded lower on NCDEX on easing demand from
retailers and stockists at the spot market. Moreover, adequate stocks
position on increased arrivals from producing belts too fuelled the
downtrend. The contract for June delivery was trading at Rs 5294.00,
down by 0.23% or Rs 12.00 from its previous closing of Rs 5306.00.
The open interest of the contract stood at 12935 lots. The contract for
July delivery was trading at Rs 5364.00, down by 0.48% or Rs 26.00
from its previous closing of Rs 5390.00.

Coriander futures edged down on NCDEX as speculators trimmed
their positions, tracking easing demand in the spot market. Further,
adequate stocks position on increased supplies from major producing
regions also weighed on coriander futures. The contract for June
delivery was trading at Rs 5025.00, down by 2.08% or Rs 107.00 from
its previous closing of Rs 5132.00. The open interest of the contract
stood at 33830 lots. The contract for July delivery was trading at Rs
5090.00, down by 2.38% or Rs 124.00 from its previous closing of Rs
5214.00. The open interest of the contract stood at 23090 lots on
NCDEX.

Economic News

The government is "actively considering" lowering interest rate on the Rs
1,000 crore loan given to state-run fertiliser firm FACT for its revival and
expansion of production capacity to one million tonnes this fiscal. Kochi-
based Fertilisers and Chemicals Travancore LtdBSE 3.96 % FACT), which
is facing a liquidity crunch, currently produces about 6 lakh tonnes of NPK
fertilisers such as aluminium sulphate with an annual turnover of about Rs
2,000 crore. "FACT is asking for reduced interest rate on Rs 1,000 crore
loan that the Government of India has sanctioned. We are actively
considering it," Union Chemicals and Fertilisers Minister Ananth Kumar
told PTI. As per the agreement, FACT has to repay the loan amount along
with interest in five years, with a moratorium of one year. The loan is being
used for working capital requirement, clearing its pending dues and
maximising capacity utilisation. Blaming the previous UPA government
for not providing timely help to the firm, Kumar said, "No funds or revival
package was given to FACT during the UPA despite six ministers
including A K Antony and Vayalar Ravi being from Kerala.“

An 11% increase in fair and remunerative price (FRP) for sugarcane is
likely to impact sugar millers’ margins, says rating agency ICRABSE 0.00
%. The Cabinet Committee on Economic Affairs (CCEA) has fixed the
FRP at Rs 255 per quintal for sugar season (SY) 2017-18. The increase in
the FRP by Rs 25 per quintal for sugarcane, by the Central Government for
the season SY2017-18, is likely to result in an increase in the cost of
production by around Rs 2,500–2,700 per ton of sugar. Sabyasachi
Majumdar, senior vice-president and group head, ICRA Ratings, said, “At
the current sugar realisations, the mills are likely to be able to absorb the
higher costs, although the margins are likely to fall from the current levels.
On the other hand, hike in FRP is likely to incentivise farmers to increase
cane acreage and thus ensure better raw material security for the sugar year
SY2018-19 onwards.

Trading Recommendations

SELL CORIANDER APR BEOW 4900 TARGET 4870 4830 4780
SL ABOVE 4950
BUY TURMERIC MAYBELOW 5350 TARGET 5580 5620 5670 SL
BELOW 5300
SELL GUARGUM5 MAY ABOVE 7360 TARGET 7330 7290
7240 SL BELOW 7410

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This release was published on openPR.