May Kapas Fell For The First Time


Mar Soybean traded on a narrow range and closed little lower on Thursday due to profit booking by the market participants tracking steady physical demand. However, there is anticipation of good demand for crushing from the oil mills on reports that the production will be lower than expected. Trade body, SOPA cuts soybean production by nearly 10 lt to 83.5 (lt) for 2017/18 crop. According to data released by Solvent Extractors’ Association of India (SEA), India exported 76,089 tn of oilmeal in January, down 51% on year. But the export volume is higher by 69% for the period Apr-Jan at 10.14 lt. The government is likely to increase the incentive given to soybean cake exporters in the form of export credit to 10% from the current 7.5% to support exports and boost domestic prices.

Mustard Apr futures trading in a range and try to consolidate above 41000 levels supported by mixed sentiments of good demand, lower production estimates and higher carry-over stocks. Currently it is trading at two weeks high as Mustard acreage is down 5% on year at 66.7 lakh ha due to poor returns in the last one year. However, higher carry-over stocks are weighing on physical market prices. India’s mustard stocks as on Feb 1 are seen at 342,000 tn, up 47% from 232,000 tn a year ago, according to the average of a estimates of a poll of 13 traders and edible oil companies, conducted by Cogencis. As per SEA import data, canola oil import was down by 7% on month.

Refined Soy Oil Futures closed higher on Thursday due to weak rupees and improved domestic demand. Recently, government ruled out any possibility on import duty hike may help in stabilize the prices in the spot market.

Country imported more edible oil during January. According to data released by the Solvent Extractors’ Association of India, country veg oil imports rose 25% on year to 1.29 mt in January while overall import of vegetable oils during Nov-Jan was at 3.63 mt, up 6% from the same period a year ago.

The government has raised base import prices for CPO by $6 per tn to $681 while increase tariffs for RBD Palmolein by 35 to $698 for the second half of Feb. India’s CPO imports rose 63% on year to 6.72 lakh tonnes in January. As per SEA latest report, During Nov-Jan, import of refined palm oil fell to 4.05 lakh tonnes from 6.83 lakh tn in corresponding period last year. However, import of crude palm oil increased to 18.4 lakh tn from 14.4 lakh tn a year ago.

Chana Mar futures recover on Thursday mainly on short covering by the market participants. The prices have been trading sideways this week as government did not decide on raising import duty on chana to up to 100% from 40% to support domestic prices which is trading below the MSP. As per government sowing data, area under the chana crop across the country was up 8.3% on year at 107.2 lakh ha as on last week. Moreover, higher imports during the current financial year pressurize prices throughout the growing season. As per government data, India imported about 7.46 lt of chana during Apr-Nov, up by 200% compared the last year imports. The imports were mostly done from Australia.

India is expected to import more than double quantity of cotton bales from the US as per the latest data by USDA. As on Feb 8, outstanding sales to India from USA is pegged at 404,000 bales (480-Lb. Bales), up by 112% compared to last year same time. Till now, India imported about only 58,700 US bales.

In Gujarat, Jeera acreage is up by 37.3% to 3.83 lakh hectares as on 12-Feb-18. Last year, it was 2.88 lakh ha at that same time. As per government data, Jeera exports during first 8 month of FY 2017/18 (Apr-Nov) is 98,681 tonnes, up 15% compared to last year exports volume for the same period. India’s jeera exports in November increase by 60% on year to 10,451 tn.