Cardamom on MCX settled down by -0.71% at 1379.6 amid subdued physical demand for cardamom in the domestic spot market. Further, sufficient supplies on higher physical arrivals from the major cardamom producing regions too fuelled the downtrend. Upcountry dealers as well as exporters were covering as it has become clear that no arrival of fresh cardamom will take place till the next season picking begins, by mid-June.
Mentha oil settled flat as sowing process has started in UP producing area. Further upside also seen limited ample stocks position on higher supplies from major producing belts of Chandausi in Uttar Pradesh, too influenced mentha oil prices. The weather looked good and everything seemed fine as of now as farmers are still under stress, as they have already suffered a lot because of demonetization. As cash is the primary mode of transaction in agriculture sector which contributes 15% to India’s total output.
NCDEX Turmeric jumps 2.94% on Thursday due to higher demand at lower prices. This season the prices continue to lower due higher arrivals and lower demand physical demand. The demand for the new season turmeric in recent weeks is lower from the up country traders. The turmeric arrivals in the country are higher at 115,205 tonnes during Mar 1-20 compared to 30,945 tonnes during previous month, as per the Agmarknet data. On the export front, country exported about 82,115 tonnes during April-Dec period, up by 28% compared to last year exports of 64,105 tonnes, as per government data.
Jeera April future hit the upper circuit on Thursday on good physical and export demand. The arrivals have been good in the physical market. As per Agmarknet data, during Mar 20-23 about 7,671 tonnes of jeera arrived compared to 5,302 tonnes during previous week same period. Market participants are expecting good exports demand in coming months.
Cotton futures on MCX closed lower due to profit booking on Thursday. The cotton arrivals are in full swing and gap of arrivals compared to last year has narrowed down. Market participants are expecting good stocks with the farmers and stockists which may hit the markets. ICE cotton futures closed lower on Thursday on muted speculative activity ahead of a federal acreage report due next week. The USDA will release its prospective crop plantings report on March 31. Weekly export sales data from the U.S. government showed net upland sales totaled 328,200 running bales for the previous week, up 4 % from the week before, but down 7 % from the prior 4-week average
Sugar Futures closed lower for the second consecutive session on reports that US sugar mills selling large volumes of sugar in the physical market while government is considering sut of sugar import duty. Moreover, the domestic consumption of white sugar may be down this year mainly due to demonetization and reduction of demand from the bulk buyers. India's domestic consumption of sugar is expected to fall 3.0-3.5% to around 24 mt in the current season ending September. Bulk consumers including soft drink manufacturers, bakeries, confectioners, hotels and restaurants account for 60-70% of the country's sugar demand. Government is likely to revise down its estimate on sugar output in 2016-17 (Oct-Sep) from 22.5 mt forecast earlier due to shortage of cane in Maharashtra and Karnataka.
CPO Futures closed higher on Thursday on expectation of good demand while the supplies are also sufficient. The imports of palm oil during Feb are higher compared to previous month which implies that the consumption demand is good in the country. Recently, government has cut base import prices (tariff charges) for palm products in India for the third successive fortnight making prices cheaper to import.