Cotton on MCX settled up 0.33% at 18310 due to improved demand from traders and stockists at the spot market. Though, some gains were capped on higher than expected cotton production in the country. The average daily arrivals of cotton are around 100,000- 125,000 bales per day higher than the last week’s average data of 75,000-80,000 bales.
India’s jeera exports in Jul down 12% on year to 7,498 tn. As per sources, current year Jeera sowing area likely to go up in Gujarat and Rajasthan due to higher prices throughout the year. Jeera sowing started in Gujarat (Saurashtra, Kutch) and Rajasthan major growing regions. However, sowing progress reported slow due to higher temperature. Higher temperature normally affect the germination. Expected sowing area likely to go up by 20- 25% in Gujarat current year.
The export of turmeric is down by 16.4% to 41,517 tonnes for the first 4 month of FY 2017/18 compared to last years’ exports. For 2017/18, turmeric sowing in Telangana, this season down 1.5% to 44,956 hectares as compared to last year acreage of 45,633 hectares. Market participants are expecting good production in the coming season due to rains in turmeric sowing areas.
Turmeric output may rise at 1-1.1 million tons in 2017-18 season compared to last year. In 2016-17, turmeric output is pegged at 1.13 million tons by government in the third advance estimate, higher from 943,000 tons in 2015-16. Moreover, despite of marginally lower sowing this year turmeric production is expected to rise on favourable rainfall.
Demand for refined zinc metal is forecast to increase by 0.7 percent to 13.93 million tonnes in 2017 and then by 2.5 percent to 14.28 million tonnes in 2018, the group said. South Korea seeks to buy 1,000 tonnes of zinc for January arrival via a tender, state-run Public Procurement Service said.
Naturalgas on MCX settled up 2.05% at 194.2 on forecasts utilities could start pulling gas out of storage as heating demand rises with the weather turning seasonally cooler. If utilities start pulling gas out of storage next week, it would be about a week earlier than the five-year average.
The latest forecasts call for seasonal temperatures over the next two weeks that will slowly boost heating demand as the weather turns colder. U.S. gas consumption will rise to an average of 83.8 billion cubic feet day (bcfd) next week and 86.4 bcfd in two weeks, from 78.8 bcfd.
The interest rate outlook for the coming year is largely unchanged by President Donald Trump’s appointment of Jeremy Powell as Fed chairman said it signaled a continuation of Janet Yellen’s cautious monetary policies. Minneapolis Federal Reserve Bank President Neel Kashkari said that there is no sign of rising inflation and that the U.S. central bank should hold off on raising interest rates until that changes.
Demand for physical gold was lacklustre in top consumers India and China, while the lure of the metal remained stable in Singapore, but India’s peak wedding season is expected to usher in renewed interest for bullion in coming weeks.