Rains in growing areas in UP too had been having a Bullish impact on the market sentiments as it affected the Oil extraction process adversely. However effect of rains may not be significant now but indications that production prospects may be lower than the previous estimates could perk up prices further. On August 26th August total stock of mentha oil at MCX-monitored warehouses at Chandausi was 92,066 kg of which 92,066 kg was physical stock and the demat stock was zero.
At Barabanki, the total stock was 9,22,941 kg of which, physical stock accounted for 9,22,413 and demat stock again was nil. The contract made intraday low of Rs 1140.1 a kg and high of Rs 1151.9 a kg with the volume of 2318 and total open interest for the same contact was at 5162.Now support for the menthol is seen at 1137.4 and below could see a test of 1132.9. Resistance is now likely to be seen at 1149.2, a move above could see prices testing 1156.5.
Soyabean yesterday we have seen that market has moved 0.52% following the overseas trend, although hopes of rising output kept the upside limited. Good monsoon rains in the current season over some of India's main oilseeds growing regions have helped expand planting slightly in the past week, provisional government data showed.
India's soybean output in 2011/12 is likely to rise 10.5 percent to 10.5 million tonnes as farmers plant a larger area with the crop and rains adequate, a senior industry official had said on Aug 8.Global production of soybeans will drop 2.5 percent from a year earlier to 257.5 million metric tons in the 2011-2012 season, trailing demand estimated at 262.3 million tons and draining stockpiles, according to the U.S. Department of Agriculture forecast on Aug. 11.
The U.S., the largest soybean grower and exporter, will likely produce 3.025 billion bushels of the oilseed, 1 percent smaller than the USDA forecast on Aug. 11. At the Indore spot market in top producer MP, soybean dropped -4 Rs to 2383Re 100 kgs. Market has opened at 2424 & made a low of 2410 versus the day high of 2435. The total volume for the day was at 32400 lots and the open interest was at 111430.Support for soyabean is at 2415 below that could see a test of 2400. Resistance is now seen at 2440 above that could see a resistance of 2450.
Chana dropped Rs 12 and settled at Rs 3258 per quintal witnessing some profit booking at higher levels, however traders are bullish for the commodity and expect the festive demand to support the rates at the lower levels and firm trend in other Pulses and in the International markets too to have bullish impact on the prices.
A surge in prices of other pulses and strong festival demand are supporting the prices. Chana prices have risen more than 7 percent in last 15 sessions and had touched a new contract high of 3,274 rupees per 100 kg in the previous session. Traders expect rates to bounce back in the coming days from the Festive demand ahead. Short term trend is likely to remain volatile.
As per Union Agricultural Ministry estimates, the Indian sowing of Pulses too fell by ~11% to 9.93 million hectares as on Aug 18 vs 11.16 million hectares same period last year despite good Monsoon progress-especially over last few weeks. Shifting to other more lucrative crops like cotton and soyabean have resulted in lower acreage for chana. In Delhi spot market, chana fell down by -23.75 rupee to end at 3160.25 rupee per 100 kgs. The volume was noted at 188630 lots. Support for chana is at 3238 below that could see a test of 3218. Resistance is now seen at 3278 above that could see a resistance of 3298.
Turmeric yesterday we have seen that market has moved 1.62% on value buying after prices fell more than 20 percent since the start of the month. Traders thought feel however that with present rates being low, the downtrend may be limited. There could be possibility of bounce back in rates in coming days if the demand picks up at these levels.
Overall low demand and good stocks as rains in growing areas in Andhra Pradesh and other nearby states have been pressurizing prices in apprehension of better crop prospects. Demand too failed to pick up significantly. Low trading activities are reported. Good Monsoon reports in Andhra Pradesh have reportedly keeping the sowing activities proper.
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