Thursday, March 13, 2014
Market Overview
Bull party continued in chana as more and more
traders turned bullish due to weather remained
damage story. Market has rallied from 2800 to
3300. Some traders expect chana to hit 3800.
Overall it’s a hedge story and we expect chana
market to offer 3% plus cash-carry badla in
remat-demat mode. April chana settled at 3389,
up 69 a 100 kgs.
Kapas and cotton cake futures remained weak.
Cotton cake market shown cracks and displayed
huge sell off. Market looks vulnerable to sell off
as demand is weak for cotton cake and quality is
very weak due to high moisture content. Cotton
cake futures lack depth.
Oilseeds May come under light selling pressure
as USDA supply and demand report spurred
selloff in CBT soy complex. Better than expected
USDA and world soy carry defused some steam.
Weather remained hostile which remained
supportive for oil. Soy meal remained weak.
Castor market extended lower amid increased
offering. CPO futures ruled weak. Market is
clueless due to hostile weather. Hail storm and
rains continued in several places in Maharashtra,
Rajasthan, Northern States and Gujarat since
last several days. Weather impact on winter
crops such as mustard and chana is yet to be
fully known but market is jittery about damage
possibilities.
Coriander futures extended gains but rally is a
slow bull market. New crop arrivals in MP-
Rajasthan combined is very good at 25000 bags.
Arrivals in Saurastra are around 15000 bag.
Saurastra, MP based dal mills are bearish and
said to be active sellers. Punters are banking
upon tight inventory/ They expect super spike
but so far market remained choppy but tail end
risk is shifted toward upside after recent weather
hostility. Prices are now down almost 50% from
the peak 17000 seen in 2010. Arrivals are very
good at Rajasthan and Unza. TMC futures traded
erratic. Undertone is mild weak.
Commodity
Chana
Turmeric
Jeera
Soyabean
Soyoil
R M Seed
CPO
Sugar
Wheat
Mentha Oil
Castor Seed
Potato
Exchange
NCDEX
NCDEX
NCDEX
NCDEX
NCDEX
NCDEX
MCX
NCDEX
NCDEX
MCX
NCDEX
MCX
Expiry
Apr
Apr
Mar
Mar
Mar
Mar
Mar
Mar
Mar
Mar
Mar
Mar
Price
3296
6922
10625
4204
729.5
3503
599
2941
1675
842.6
4262
1179
%
Change
-2.34%
-3.99%
1.38%
0.29%
-0.14%
-1.66%
-0.96%
0.93%
-0.30%
-4.30%
0.64%
0.54%
Chart of the Day: Chana
As shown, NCDEX Chana after making a short term
high near Rs.3416, reversed sharply and is trading
close to Rs.3300 level. Even though the trend is still
up, correction could take the prices towards next
major support at 3235 level. For the day, selling near
3330 is advisable for the target of 3235 level
1
Please refer to disclaimer at the end of the report.