Mr. Ritesh Kumar Sahu (Fundamental Analyst- Agri Commodities, Angel Commodities Broking):
"During the current week, futures contracts of all benchmark edible oil and oilseed basket, excluding mustard (Rmseed), traded higher on domestic commodity exchanges. Soybean futures on National Commodities and Derivative Exchange (NCDEX) were up by 0.63% this week to close above Rs. 3,010 per quintal. The gain in prices is attributed to improved soybean demand and reports of lower soybean acreage during the current kharif season. As per government data, area under soybean crop across the country for the 2017-18 kharif was 73.44 lakh hectares till last week, down about 11.7% on year. Last year, the acreage was 83.14 lakh hectares.
Rmseed futures trade in a narrow range and heading for weekly loss of about 0.5% on reports of sufficient stocks and steady demand in the country. Edible oil prices have moved little higher on hope of good increase in import duty coupled with firm international edible oil prices but higher stock positions in the country and steady domestic demand capped further gains.
Among spices, Turmeric, Jeera and Coriander traded on negative note while Cardamom futures closed higher for the 6th time in last eight weeks. Cardamom futures on Multi-Commodity Exchange (MCX) jumped more than 6% this week due to lower than expected supplies from new season crop amid lower than normal monsoon rains in cardamom growing areas in Kerala.
Turmeric futures on NCDEX fell more than 4.5% this week due to higher acreage reported in Telangana coupled with good rains in turmeric growing areas of Maharashtra and Karnataka. In Telangana, turmeric acreage as on 19-Jul-17, up 90% to 33,000 hectares as compared to last year acreage of 28,000 hectares. The normal acreage is close to 47,000 hectares.
NCDEX Jeera for August delivery down 1.62% this week as market participants initiated fresh selling amid weak physical demand at higher prices. However, jeera is still trading at 11 month high. Similarly, coriander futures on NCDEX are trading in a narrow range due to balances demand and supplies.
MCX Cotton recovers this week due to reports of crop damage in Gujarat and Punjab due to above normal rains. However, good progress in cotton sowing in the country capped further gain. As per latest data from Agricultural Ministry, cotton is planted in 90.1 lakh hectares (l ha) till last week, higher 23% compared to last year acreage of 74 lakh ha for same period.
NCDEX Guar seed and Gum futures traded lower this week due to good sowing progress in Rajasthan and Gujarat. As per Agriculture Department of Rajasthan in its latest kharif sowing data, reported that farmers in Rajasthan have planted guar in more than 16.9 lakh hectares till 17th July, up by 65.5% compared to last year acreage of about 10.2 lakh hectares."