DAILY FUNDAMENTAL REPORT - AGRO

Dec 01

, 2011

Market Overview:

Turmeric futures prices extended its profit booking, as

speculators booked profits at existing higher levels, driven by

subdued demand in the spot market. Expectations supplies of

new season crop into the spot markets also influenced the

turmeric prices in futures trade.

After a positive closing in the last session market participant

extended their buying on the back of limited stocks and thin

supply in the domestic markets. Lower arrivals and weak spot

demand mainly supported the uptrend

Chana futures plunged in the last session on the back of

strong rabi sowing progress in major producing states along

with strong supplies in major mandies.

Indian Jeera futures continue to trade on negative note

consecutive for third session as speculators booked profit at

the higher level amid higher arrival and weak spot demand

mainly influenced the prices here.

Watch

Market Watch

AGRO

CHANA

CHILLY

GUAR GUM

GUAR SEED

JEERA

PEPPER

R M SEED

SOYA BEAN

SOYA OIL

TURMURIC

WHEAT

CONTRACT

20-Dec-11

OPEN

3140

6950

16400

5300

13789

35220

3178

2245

638

4610

1182

HIGH

3144

7010

16775

5360

13798

35285

3178

2257.5

638.2

4642

1183

LOW

3034

6836

16250

5180

13311

34975

3137

2237

632.2

4470

1175

3110

6844

16690

5323

13472

35250

3142

2245

635.15

4510

1176

CHG

-50

-130

359

-284

135

-32

-4

-124

-9

% CHG

-1.580

-1.86

2.20

1.29

-2.06

0.38

-1.01

-0.18

-0.63

-2.68

-0.76

150900

5380

11780

94600

11919

9727

90880

118640

76480

15570

21870

CHG

29850

1550

3040

9500

2751

1047

33170

24100

37680

2940

2760

%CHG

19.8

28.8

25.8

10.0

23.1

10.8

36.5

20.3

49.3

18.9

12.6

DAILY FUNDAMENTAL REPORT - AGRO

Dec 01

, 2011

PEPPER

Pepper futures gain as speculative long position holders added more in the market hours. At the NCDEX (National

Commodity Derivative Exchange) pepper prices traded on positive note by Rs 135 to Rs 35250 per quintal.

Outlook:

Fundamental Outlook:

Vietnam pepper was quoted as FAQ min 500 G/L at $ 6,950 a tons (fob) HCMC and FAQ min 550 G/L at $7,300 a

tons. White pepper double washed was quoted at $ 10,250 tons.

The global markets seem to be entering into a cooling off phase. In Malaisa, the prices have dropped sharply over

the last few weeks given that farmers were reluctant to sell their stocks while dealers and exporters were staying

on the sidelines ahead of year-end book closure

The higher pepper output in the country is also affecting the prices. Pepper prices in Vietnam have also eased

slightly mainly due to the strengthening of Vietnamese dong to US dollar, as Vietnam is the world's number one

producer contributing about 100,000 tons or 30% of annual global production.

Investors were liquidating and getting out of the market as there were no premium for further out positions.

Resellers were buying back their sales on the exchange platform and releasing spot pepper.

JEERA

Jeera futures decline on short selling by speculators amid strong arrival and weak spot demand mainly influenced the

prices here. At NCDEX jeera prices traded on negative note at Rs 284 by Rs.13472 per quintal.

Fundamental Outlook:

Reports on the sowing progress in Gujarat and Rajasthan would be important for the short term market

sentiments. Good rains early this year could have a positive impact on the sowing activities as per traders.

Carryover stocks of Jeera is expected to be around 9-10 lakh bags as compared to 4-5 lakh bags in the last year,

weak exports and higher sowing could limit the uptrend.

Area sown under Jeera till November 21, 2011 stood at 1.13 lakh hectares (lh) up 56% as compared to 0.725 lh in

the same period last year.

Jeera arrivals in the Unjha mandi were steady at 2,000 bags and the demand also steady at 5000 bags. The spot

Jeera was quoted steady in the range of Rs. 13,500-15,000 per quintal while best quality quoted at Rs. 17,500-

20,000 per quintal.

DAILY FUNDAMENTAL REPORT - AGRO

Dec 01

, 2011

TURMERIC

NCDEX Turmeric futures traded on negative note amid higher arrival in the major mandis and the demand for the

yellow spice from other areas has decreased and traders received more orders.

Fundamental Outlook

The total production of turmeric in the current year is likely at 90 lakh bags against 70 lakh bags that were

reported last year in the same period.

Moreover, sturdy carryover stocks in major mandies of around 20-22 lakh bags are also witness some selling

pressure at higher levels. Therefore, strong supplies in physical market might witness strong selling in turmeric

market at higher levels.

Though demand for the root and hybrid varieties was high, their prices, too, did not rise. Traders from Punjab and

Delhi bought the root variety. Three-fourths of the stocks of the root variety that arrived were sold

Overall, 6,900 bags arrived, out of which only 60 per cent were sold because of poor quality. Prices here did not go

up following the trend at Nizamabad and Sangli markets. Traders quoted below Rs 4,500 a quintal even though

rains pulled down arrivals.

CHANA

Chana prices traded marginally on negative note on weak Fundamentals in the initial session. Good demand amidst

lower arrivals supported the downtrend in the market. At the National Commodity and derivative Exchange, chana for

delivery in December decline by Rs 50, to Rs 3,110 per quintal

Fundamental Outlook

Pulses have been sown in 61.30 lakh hectares as on November 24th 2011 as compared to 57.29 lakh hectares in the

same period last year.

There are reports of decline in the output of dry peas and Chickpeas in Canada for 2011. Chickpeas output is

expected to fall by 58% to 54 MT while that of peas will fall by 33% to 2 MT.

The total sowing acreage of chana in the state augmented by almost 3 lakh hectares to 14.81 lakh hectares as on

27th November 2011. This was mainly due to remunerative prices of chana in major mandies along with favourable

weather conditions in major producing areas.

Raising MSP of Rabi crop (Gram by 33% to Rs 2800/Q from Rs 2100/Q) could support Chana rates in medium term.

DAILY FUNDAMENTAL REPORT - AGRO

Dec 01

, 2011

SOYABEAN

US soyabean traded on positive note as speculators extended their buying from last session. But at the end market

participant short selling their position and settled the prices on negative note.

Fundamental Outlook

However, the steep decline spurred some buying from traders reluctant to bet that prices would fall further amid

speculation lower prices will lead China to increase its purchases of U.S. soybeans in the near-term.

Euro zone debt crisis continue to weigh market sentiments. Weak cues from international markets will support the

weakness in prices. Meanwhile depreciating rupee against the US dollar will limit the downside.

Frontline factors continue to be focused on the demand side especially with US soybeans exports deeply

underperforming this year. The crop size almost known, but the extent of demand still remains unknown

Hence, there is lot of pressure on China to compensate partially for the losses elsewhere. While, the annual forecast

numbers show a dramatic increment to Chinese soybean imports from 52mn tons to over 57mn tons, their laggard

buying pace so far this year is a cause of concern.

DAILY FUNDAMENTAL REPORT - AGRO

Dec 01

, 2011

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