Agriculture Commodities June 2015

From MCX Report

• Crude palmoil

– MCX June CPO futures contract closed June at Rs. 451.4 per

10 kg, down 2.3%, as USDA forecasted that global palm oil

production would increase by 6% to touch 65.17 million

tonnes (Mt) in 2015–16 as against 61.65 Mt a year ago.

– Malaysian CPO production increased by 5.4% m-o-m to

1.79 Mt, swelling the CPO inventory in May by 2.5% to 2.24

Mt, the highest since November, putting pressure on

prices.

– MCX CPO prices also remained under pressure due to the

seasonal rise in production in Indonesia and Malaysia—the

world’s largest producers.

• Cotton

– MCX June cotton futures contract closed June at Rs.16,250

per bale, down 0.9%, as China was reportedly planning to

release some cotton from its state reserves this year in a

bid to reduce its bulging stockpiles. At 10 million tonnes,

the country holds more than 40% of world stocks.

– Later prices recovered on China Cotton Association’s

forecasts that China’s cotton production might decline by

9.8% to 5.86 Mt in 2015–16.

– Prices also recovered as Cotton Association of India

reduced its production estimate by 2% for 2014–15 to

38.27 million bales.

• Cardamom

– MCX cardamom July 2015 futures contract increased by

5.2% in June to close at Rs. 842.8 per kg due to seasonal

increase in demand because of Ramadan.

– Though the arrivals started earlier than usual, limited

supplies supported prices.

– A major upside in prices was capped as traders expecting

increase in supplies in the coming months, postponed

stocking cardamom.

• Mentha oil

– MCX mentha oil June 2015 futures contract prices rose by

10.9% to close at Rs. 1057.1 per kg on June 29.

– Prices rose on concerns that production would be lower

this year.

– Arrivals of mentha oil compared with last year remained

lower, supporting the belief of lower production.

– Uptick in demand from domestic consumers also

supported the price rise.

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