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Epic Research Weekly Agri Commodity Report 15 JANUARY 2017



Commodity News

Indian Cotton traders have cancelled contracts to export some 400,000 bales of the fibre after a rally in domestic prices and the rising rupee made overseas sales unattractive, the Cotton Association of India (CAI) said. The switch, triggering penalty payments by traders, has left cotton buyers in leading markets like Bangladesh, Vietnam and China seeking to make up shortfalls by tapping suppliers in the United States, Australia and Brazil, the association said. The cancellations and higher local prices could cut India's exports to 5 million bales, each of 170 kg, in the 2017/18 marketing year started on Oct. 1 - nearly a quarter below an initial estimate, CAI said.

India’s vegetable oil imports in December fell 10% from a year ago to 1.1 million tonnes as refiners slashed overseas Soyoil purchases after supplies rose from the local crop, trade body Solvent Extractors’ Association of India (SEA) said. The country’s imports of Soyoil stood at 79,250 tonnes for the month, well down on the 232,132 tonnes bought last year, SEA said in a statement. Soybean crushing has picked up after the duty hike, the association said. India, the world’s biggest edible oil buyer, in November doubled the import tax on Crude Palm Oil to 30 percent, while the duty on refined Palm Oil was raised to 40 percent from 25 percent.

The country's Onion production is estimated to decline by 4.5 per cent to 21.4 million tonnes in the 2017-18 crop year (July-June) due to lower acreage as against 22.4 million tonnes last year, but the total production would be sufficient to meet the domestic requirement. Retail Onion price have risen to Rs.50-60/kg in some parts of the country but the government consider it is a temporary phase and the rates will cool down by the month-end with improved arrival of the kharif crop. Onion is being sold at over Rs.50/kg in the national capital, Mumbai and Kolkata, respectively.

Economic News

The Tamil harvest festival, Pongal, will once again leave a bitter after-taste for sugarcane growers in the state who are yet to recover from the ravages of the drought of 2016-17. Low produce, mounting arrears from private mills and a state government that has been dragging its feet on cane procurement prices, better known as State Advised Prices (SAP), have left growers with little to cheer in the festive season. Sugar mills in Tamil Nadu have produced only 1.70 lakh tonnes of sugar till 31 December 2017 compared to the 1.86 lakh tonnes produced last year on the corresponding date, according to data from the Indian Sugar Mills Association (ISMA). "In the absence of any details on the government cane prices, we are forced to cut produce and sell at whatever rates we get," said SKG Giridharan, a sugarcane farmer from Nagapattinam. Come Pongal, there is a hike in demand for sugarcane from the government, private mills and local markets but cultivators are being forced to prepare their produce for supply with no knowledge of the price, to be advised by the state, for the current season, 2017-18.

Rural India is facing stress as prices of key agricultural commodities such as pulses have fallen sharply because of fresh supplies from farms and the government's robust measures to build stocks and control food inflation. Most farmers are facing losses in the rabi, or winter-sown, crop, which has started arriving in mandis. The worst hit are those who planted pulses as prices have plunged 20% below the support price in the case of tur dal. The price of many spices has fallen, while the usually pricey pomegranate is selling at the lowest level in a decade. Onions are doing relatively better but farmers have planted so much of the crop that prices are likely to tumble in April, traders said. Jeera, coriander and oilseeds such as mustard are also expected to come under pressure, they said. Farmers have faced a rough time in recent years: The summers own kharif crop was hit by two failed monsoons along with erratic rainfall in the last season.

COMMODITY HEADLINES

1) Comprehensive policy to promote agriculture exports on anvil
2) India's palm oil imports flat at 7.22 lakh tonne: SEA
3) Farm sector to expand over 4% in FY18: Farm Minister Radha Mohan Singh
4) Farmers feel the chill as prices of commodities fall
5) Onion price up at Rs 50-60/kg; Government says will cool down soon
6) Low produce, undecided prices irk Tamil Nadu cane growers
7) Crop insurance scheme likely to get Rs 13,000 crore in FY19 budget
8) India rice exports seen surging to record as Bangladesh boosts buying
9) Rs 5kcr micro-irrigation fund: Agriculture ministry yet to fix norms
10) Pepper minimum import price will lead to closure of export units, says AISEF
11) Wheat output may touch all time high of 100 million tonnes this year: Agriculture Secretary S K Pattanayak

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News Release: Epic Research Weekly Agri Commodity Report 15 JANUARY 2017
Submitted on: January 15, 2018 04:41:33 AM
Submitted by: EpicResearch
On behalf of: www.epicresearch.co/
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