DAILY FUNDAMENTAL REPORT - AGRO

Nov 24

, 2011

Market Overview

Turmeric futures gained as traders created fresh positions on

the back of rising demand in the domestic markets. Though

higher arrivals from the fresh crop limited the upside.

Pepper futures traded sideways in the initial session amid

absence of fresh Fundamental and anticipate exports to rise

by December. But at the end speculators short covered their

position and settled the prices on positive note.

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.

Jeera futures extended its profit booking consecutive for

second session amid higher arrivals and weak spot demand.

Higher sowing in the producing regions amid weak export

demand. Higher stocks from the fresh crop also put pressure

on Jeera futures.

Watch

Market Watch

AGRO

CHANA

CHILLY

GUAR GUM

GUAR SEED

JEERA

PEPPER

R M SEED

SOYA BEAN

OIL

SOYA OIL

TURMURIC

WHEAT

CONTRACT

20-Dec-11

OPEN

3467

7338

14250

4577

13702

34550

3179

2271.5

644.3

4752

1208

HIGH

3489

7338

14425

4622

13810

34790

3210

2284

649.5

4870

1208

LOW

3345

7190

14140

4523

13561

34145

3173

2260

644.25

4710

1184

3383

7220

14270

4555

13613

34650

3182

2262

645.8

4792

1196

CHG

-97

-48

-43

-25

-122

130

-3

-10

0.2

-12

% CHG

-2.790

-0.66

-0.30

-0.55

-0.89

0.38

-0.09

-0.44

0.03

0.25

-0.99

188170

5135

14360

150030

14106

10304

111880

129170

98410

14785

23270

CHG

29850

1550

3040

9500

2751

1047

33170

24100

37680

2940

2760

%CHG

15.9

30.2

21.2

6.3

19.5

10.2

29.6

18.7

38.3

19.9

11.9

DAILY FUNDAMENTAL REPORT - AGRO

Nov 24

, 2011

PEPPER

Pepper futures declined marginally as speculative long position holders resorted to liquidation to get out of the market.

At the NCDEX (National Commodity Derivative Exchange) pepper prices traded on negative note by Rs 200 to Rs

34545 per quintal.

Fundamental Outlook

Fall in global market rates in Vietnam due to anticipated higher stock availability had created a bearish impact in

Indian markets also but traders expect exports to rise in coming weeks that could prevent prices from dipping too

much. New crop to arrive in Jan-Feb.

Arrival of the new crop in India is expected during year-end. Slight improved production prospects from Kerala and

Karnataka and arrival of the new crop could limit the uptrend

Strengthening in the Dollar vs Re rates could have beneficial impact on the export front. But short term correction

possibilities remain.

IPC has predicted 2011 crop to be lower by 2% at 309,952 MT. Carry forward stocks are expected to decline

marginally to 94,582 MT vs 95,442 MT. Global exports have declined by 11% to 237,650 MT. Indian production

expected to decline to 48,000 MT.

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 122 by Rs.13613 per quintal.

Fundamental Outlook

Sowing of Jeera in Rajasthan has gained momentum due to favorable weather condition. Sowing of Jeera has also

commenced in some parts of Gujarat but it is on slow pace.

Jeera arrivals in the Unjha mandi were steady at 3,000 bags while the demand slipped to 5,500 bags from 6,500

bags on Tuesday. The spot Jeera was quoted steady in the range of Rs. 12,500-14,000 per quintal while best quality

quoted steady at Rs. 14,000-15,000 per quintal.

The estimated exports of Spices for the period April-Sept 2011 have fallen by 19% from 294925 MT in 2010 to

237585 MT in 2011. Jeera exports fell by 15% from 18800 MT to 16000 MT during the same period.

DAILY FUNDAMENTAL REPORT - AGRO

Nov 24

, 2011

TURMERIC

NCDEX Turmeric futures traded on positive note amid lower arrival in the major mandis and the demand for the

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

Fundamental Outlook

The export is estimated to touch 50000 tons in 2011-12, up 83 percent from previous year. However, expected rise

in daily arrivals amid gain in the prices made last few days are likely to pressurize the prices.

In the Nanded mandi of Maharashtra, select quality quoted at Rs. 6,200 while the Powder quality traded

at Rs. 5,300 per quintal. Rajapuri variety and Desi Kadappa quoted at Rs. 6,400 and at Rs. 5,500 per quintal in

Sangli mandi.

Turmeric price in the Nizamabad mandi quoted at Rs. 5,500 per quintal today. The arrivals in the Erode mandi

were reported at 9,000 bags with prices quoting higher at Rs. 4,500 per quintal and the Salem variety turmeric

traded at Rs. 5,500 per quintal.

Good Monsoon reports in AP have reportedly keeping the sowing activities proper. The area sown would however

depend on market rates and if falling trend continues, traders expect the sowing area may fall as farmers may shift

to other lucrative crops like cotton, soybean etc.

CHANA

Chana prices traded 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 97, to Rs 3,383 per quintal.

Fundamental Outlook

The total sowing acreage of chana in the state augmented by almost 3 lakh hectares to reported at 14.59 lakh

hectares as on 22nd November 2011.

This was mainly due to remunerative prices of chana in major mandies along with favorable weather conditions in

major producing areas.

St Advance Govt estimates of a fall in Pulses production to 6.43 million tons vs last estimates of 7.12 million tons

could support short to medium term rates for Chana.

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

Nov 24

, 2011

SOYABEAN

US soyabeans 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

Strong crushing margins in domestic market encouraged the sturdy offtake of domestic soyabean by millers.

Traders mentioned that millers are currently getting the net crushing margins of around Rs. 80-95 per quintal

from domestic soyabean. This was mainly due to fresh supplies of soyabean in major mandies.

Moreover, receding arrivals of new soyabean in the last week also added some buoyancy in soyabean in domestic

market. It was mentioned that the total daily arrivals of new soyabean reduced to 6-7 lakh bags from 10-11 lakh

bags that were reported earlier.

Soy users in China weighed in as the top international customers of whole U.S. soybeans buying 895 million

bushels, up from 825 million bushels during the 2010/2011 marketing year.

DAILY FUNDAMENTAL REPORT - AGRO

Nov 24

, 2011

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