High imports, poor demand may drag down coriander prices 10% by July
Ram Gopal Yadav (7 years ago)

A sharp 40% fall in output, which typically should have led to higher prices, may not translate into better returns for coriander growers, as rising imports over the last couple of years are likely to drag down prices by another 10-12% by July. Coriander prices have declined 20-22% since the beginning of 2018 in the spot and futures market. Coriander production in 2017-18 (Oct-Sep) is estimated at 6 mln bags of 40 kg each, while carryover stock from last season is pegged at 4-5 mln bags, largely comprising of imports. Higher carryover stock has led to a rise in total inventory to such a level that stockists do not have enough space at warehouses to store new stocks. The likely sharp fall in output this year has largely been attributed to subdued prices through most of last season.

NCDEX coriander up on short covering post 7-month low
Ram Gopal Yadav (7 years ago)

Futures contracts of coriander on NCDEX rose nearly 2% as investors covered their short positions after the May contract hit a seven-month low of 4,640 rupees per 100 kg earlier. The May contract was up 1.64%. A fall of 2,150 tn in open interest in the contract at 16,200 tn indicated short covering.Prices, however, are likely to fall in the short term as daily arrivals may hit 25,000 bags by next week.

MCX CPO gains tracking CBOT soy, weak ringgit
Ram Gopal Yadav (7 years ago)

Crude palm oil contracts on MCX rose tracking gains in soyoil contracts on CBOT, and weakness in the ringgit against the dollar. Prices of soyoil and palm oil move in tandem, as they are used as substitutes. The most-active May contract on MCX was up 0.9% at 647.30 rupees per 10 kg. Gains in the parent contract on Bursa Malaysia Derivatives Exchange is also seen supporting the contracts. The most-active July contract was up 34 ringgit.

Mustard seed up in Jaipur on demand from crushers
Ram Gopal Yadav (7 years ago)

Prices of mustard seeds were up in Jaipur due to improved demand from crushers and oil millers. Mustard crushing across the country was estimated at 800,000 tn in March, more than double from last month’s 375,000 tn. A fall in arrivals also supported prices of mustard seed. Export demand for mustard meal also supported prices in the domestic market.

Soybean futures are trading 5 to 7 cents lower
Ram Gopal Yadav (7 years ago)

Soy meal was down $4.00/ton, with front month soy oil 2 points lower. Managed money in soybean futures and options added 6,953 contracts to their net long position of 177,047 contracts last week. Meanwhile in soy oil, they were at their largest recorded net short position of -73,540 contracts. No deal was reached in two days of negotiations between the US and China, with both sides suggesting some minor issues had been solved but none of the major requests. BAGE estimated the soybean crop in Argentina at 61.8% complete, in front of the normal pace of 56.4%.

India 2018-19 soybean area seen up 10% at 11.5 mln ha
Ram Gopal Yadav (7 years ago)

With monsoon expected to be normal this year and returns in soybean seen better, acreage of the oilseed is likely to rise 10% on year to around 11.5 mln ha in the 2018-19 (Jul-Jun) kharif season. At present, prices of soybean are around 20% above minimum support price in key markets in the country. It will encourage farmers to sow more soybean this year. The official’s sowing projection was the highest among the 13 respondents at 14.0-15.0 mln ha for 2018-19, against 11.0 mln ha estimated this year. Farmers had switched to other crops for better returns in 2017-18 and in next kharif they are most likely to come back to soybean. Growers in Madhya Pradesh are also expected to switch to soybean from jowar and minor grains like kodo and kutki. Meanwhile, prices of most kharif crops are ruling below their minimum support price in key markets that would further encourage farmers to opt for soybean.