Cardamom, Cotton, Crude palmoil,
Mentha oil, Agriculture Overview: May 2015
From MCX Report
• Crude palmoil
– MCX May CPO futures contract closed the month at `456.8
per 10 kg, up by 4.4%, as the December 2014
floods in
Malaysia continued to take its toll on oil
production.
– Fears of El-Nino hitting India, Indonesia and Malaysia could
lead to lower production which kept prices
high.
– To support the domestic palm oil industry the Indonesian
government signed the Biodiesel B15
legislation which
would increase domestic consumption and reduce
export
surplus. The implementation of the legislation
is likely to be
from August, and in anticipation of the
reduced export
surplus, CPO prices got stronger.
• Cotton
– MCX May cotton futures contract closed the month at
`16,520
per bale, down by 0.7%, largely driven by bleak
export demand.
– The carry-over stock is likely to be around 70 lakh bales,
which is the highest ever carried by India
after 2008–09, said
an Economic
Times report.
– By the month-end prices recovered due to some demand in
the spot market and cues from international
markets where
prices rose as cotton planting in the U.S.
fell to a six-year low
of 9.55 million acres, stoking fears of
smaller crop.
• Cardamom
– MCX cardamom June 2015 futures contract fell by 6.1% in
May to close the month at `834.8
per kg due to increased
arrivals at auctions held in Kerala and Tamil
Nadu.
– Planters were said to be liquidating their stocks anticipating
early arrivals of fresh crop from mid-June;
normally the new
arrivals begin in Aug–Sept.
– Absence of demand, both domestic and exports; and
reported arrivals of inferior quality capsules
also pulled
down prices.
• Mentha oil
– MCX mentha oil May 2015 futures contract
dropped by 7.9%
to close at `926.7 per kg on May 28,
2015.
– Absence of domestic industrial demand and a
near-nil
export demand affected mentha oil prices.
– Traders and stockists are reportedly awaiting
the arrival of
the new crop before becoming active in the
spot market.
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