Epic Research Daily Agri Commodity Report Of 06 JUNE 2017

Commodity News

Turmeric futures traded lower on NCDEX on fall in demand from
upcountry and industrial buyers at the spot market. Besides, higher
arrivals in the month of May also weighted on the prices. Reports
showed about 72,120 tons arrived in May 2017 compared to 30,703
tons during May last year. The contract for June delivery was trading at
Rs 5304.00, down by 0.11% or Rs 6.00 from its previous closing of Rs
5310.00. The open interest of the contract stood at 9935 lots. The
contract for July delivery was trading at Rs 5350.00, down by 0.30% or
Rs 16.00 from its previous closing of Rs 5366.00.

Jeera futures traded higher on NCDEX on rising exports demand at
the spot market. On the export front, country the exports increase by
29.6% to 1.09 lt in first 11 month in 2016/17. Moreover, the jeera
arrival in May is lower this year compared to last year too fuelled the
uptrend. Reports showed about 10,688 tons of jeera arrived in May
2017 compared to 14,302 May last year. The contract for June delivery
was trading at Rs 18165.00, up by 2.69% or Rs 475.00 from its
previous closing of Rs 17690.00. The open interest of the contract
stood at 4758 lots.

Coriander futures traded higher on NCDEX as participants enlarged
their holdings, tracking improved demand in the spot market. Besides,
limited supplies from major producing belts also added support to
coriander prices’ uptrend. The contract for June delivery was trading at
Rs 4670.00, up by 1.24% or Rs 57.00 from its previous closing of Rs
4613.00. The open interest of the contract stood at 20540 lots. The
contract for July delivery was trading at Rs 4790.00, up by 1.42% or Rs
67.00 from its previous closing of Rs 4723.00. The open interest of the
contract stood at 35730 lots on NCDEX.

Economic News

What has made the Maharashtra farmer hit the streets, dump his produce
and even attack suppliers? A combination of weather, unscrupulous
middlemen and lack of discretion on crop seems to have wreaked havoc on
their lives. Rainfall in Maharashtra has been deficient in 2011 and the
situation turned worse leading to a severe drought till 2015. In 2016,
farmers got relief with normal rains, when they got back to sowing after
taking loans. However, after a good crop now, they have been hit by
unscrupulous traders who have not paid them expected prices. Onions sold
for Rs 4,500-5,000 a quintal in previous years, but fell to less than Rs 1,000
now with a glut in production. In some places, farmers were offered 10
quintals for less than Rs 500, prompting many to dump their produce on
the roads or dry up in the fields. The same is the case of tomatoes, where
farmers were offered Rs 3-6 for a kilo.
After two years of drought, the current year witnessed oilseed production
rebounding. However, the increase in production has not brought any cheer
to our farmers as prices have collapsed below the MSP levels. This has
happened probably for the first time in decades and needs immediate
action. "We take this opportunity to bring to your notice certain
developments which can have far reaching consequences for the cultivation
of oilseeds in our country if immediate remedial actions are not initiated to
retrieve the situation. Monsoon has already arrived in Kerala in time and is
expected to move further in next 10-15 days across the country and the
farmers will start sowing operations very soon. However, the current price
level is the lowest in the last five years and farmers are totally discouraged
to sow the oilseeds in the current kharif season. Further, there is hardly any
market intervention operation to support the price level. The SEA has
demanded: "Import duties on Crude Oils should be raised to 20% from a
level of 7.5% on crude palm oil and 12.5% on Soft Oils with immediate
effect. Import duty on Refined Oils should be raised to minimum 35% from
current level of 15% on Palmolein and 20% on other Refined Oils.“


Trading Recommendations

SELL CORIANDER APR BEOWL 4590 TARGET 4560 4540 4490
SL ABOVE 4640
BUY TURMERIC MAY ABOVE 5360 TARGET 5390 5420 5470
SL BELOW 5310
BUY GUARGUM5 MAY ABOVE 7170 TARGET 7200 7240 7290
SL BELOW 7120

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This release was published on openPR.