Sowing in Gujarat was completed in around 84%
of the area. Last year, the sowing was completed
in an area of 71.89 lakh hectare. The sowing of
groundnut in Gujarat in terms of percentage was
more than that of the cotton. In the past year it
was observed that sowing of cotton was more
than that of the sowing of groundnut.
The Indian sugar sector cycle has changed. After
five years of surplus production, the sugar
season 2015-16 has witnessed a 12 per cent fall
in output, mainly due to drought in Mah-arashtra
Sugar production is expected to fall further in
the season, starting October. To prevent rise in
sugar prices, the government felt the need of
increasing supply in the open market to meet
Chicago soybeans eased as market took a
breather after climbing to four-week high on the
back of strong purchases by top importer China.
The U.S. Department of Agriculture announced
that private exporters reported the sale of
381,000 tonnes of soybeans to China for delivery
during the 2016/17 marketing year.
The share of palm oil in India's growing edible oil
imports is likely to plunge to a record low this
marketing year as a rally in prices slashes its
discount over rival soyoil. That shift could drag
on benchmark prices for palm oil.
Palm oil shipments from Indonesia rose to the
highest level in three months in July after buyers
from China to India boosted purchases.
Palm oil futures returned to a bull market on as
demand for the edible oil increased ahead of
festivals in Asia and as a slow recovery in El
Nino-hit yields constrains supplies.
As shown on daily chart, NCDEX Guarseed(Oct contract)
price has recently rallied from ‘Double Bottom’ neckline
support near Rs.3560-3580 area. The medium-term bias
remains positive as long as support is held and rally
towards expected target area at Rs.4230 level looks
possible. For short-term re-test of previous high near
Rs.3980 level looks likely. Buying on dips is thus advised
R M Seed
Chart of the Day: NCDEX Guar seed
Please refer to disclaimer at the end of the report.