Mustard Seed Ends Lower As Demand Weakens

 

MustardSeed prices closed lower by 0.77 per cent on Wednesday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of the profit booking by the traders on account of the weak crushing and export demand of mustard meal. At the NCDEX, Mustard Seed futures for Sept 2015 contract closed at Rs. 4,236 per quintal, down by 0.77 per cent, after opening at Rs. 4,273 against the previous closing price of Rs. 4,269. It touched the intra-day low of Rs. 4,228.

Sentiment weakened further due to the sluggish export demand as a result of the weak demand for the commodity.

EU-27 accounts to about 34 per cent of worlds RM seed production, others major producers are China (23 %), Canada (19 % ), India (14 % ), Australia (3 % ), Ukraine (2 % ). India produces 5.5 million MT to7 million MT annually. 

 

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Chana Prices Closed Higher 0.53 percent on Thursday

Chana prices closed higher 0.53 percent on Thursday at the National Commodity & Derivatives Exchange Limited (NCDEX) as the traders enlarged their holdings in the commodity on account of the good demand in the market. At the NCDEX, chana futures for September 2015 contract closed at Rs. 4,760 per quintal, up by 0.53 per cent, after opening at Rs. 4,731 against the previous closing price of Rs. 4,735. It touched the intra-day high of Rs. 4,809.

Moreover, the restricted arrivals of the commodity in the physical market due to lower estimated output also influenced the chana prices.India is the largest producer of chickpea followed by Pakistan, Turkey and Iran. India produces around 6 to 8 million tonnes and contributes around 70 per cent of the total world production.
 

At the NCDEX, chana futures for September 2015 contract closed at Rs. 4,731 per quintal, down by 1.89 per cent, after opening at Rs. 4,830 against the previous closing price of Rs. 4,822. It touched the intra-day low of Rs. 4,697. India is the largest producer of chickpea followed by Pakistan, Turkey and Iran. India produces around 6 to 8 million tonnes and contributes around 70 per cent of the total world production.

 

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Mustard seed ends lower on increased arrivals

Mustard Seed prices closed lower by 1.24 per cent on Friday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of the profit booking by the traders on account of the weak crushing and export demand of mustard meal. At the NCDEX, Mustard Seed futures for August 2015 contract closed at Rs. 4,052 per quintal, down by 1.24 per cent, after opening at Rs. 4,099 against the previous closing price of Rs. 4,103. It touched the intra-day low of Rs. 4,042.Sentiment weakened further due to the sluggish export demand as a result of the weak demand for the commodity.EU-27 accounts to about 34 per cent of worlds RM seed production, others major producers are China (23 per cent), Canada (19 per cent), India (14 per cent), Australia (3 per cent), Ukraine (2%). India produces 5.5 million MT to7 million MT annually.

And we Saw That Mustard Seed prices closed lower by 0.65 per cent on Thursday at the National Commodity & Derivatives Exchange Limited (NCDEX) as a result of the profit booking by the traders on account of the weak crushing and export demand of mustard meal. At the NCDEX, Mustard Seed futures for August 2015 contract closed at Rs. 4,098 per quintal, down by 0.65 per cent, after opening at Rs. 4,122 against the previous closing price of Rs. 4,125. It touched the intra-day low of Rs. 4,070. Sentiment weakened further due to the sluggish export demand as a result of the weak demand for the commodity. EU-27 accounts to about 34 per cent of worlds RM seed production, others major producers are China (23 per cent), Canada (19 per cent), India (14 per cent), Australia (3 per cent), Ukraine (2 per cent). India produces 5.5 million MT to7 million MT annually.

 

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Budget 2015: Commodity market gets a reprieve with FMC-SEBI merger

                                             BL RESEARCH BUREAU:  

The change

The ₹5,600 crore payment crisis that led to the collapse of the country’s single largest commodity spot exchange- National Spot Exchange Limited (NSEL) has seen the government make earnest efforts to bring the regulation of the commodities markets under the Securities Exchange Board of India.

The background

FMC which was earlier under the Consumer Affairs Ministry was brought under the Finance Ministry in September 2013 as the investigations into the NSEL scam began.

Volumes in commodity futures bourse dropped after the NSEL event. In 2013-14, the total commodity futures market turnover was down by 40 per cent. In the nine months so far this fiscal, the situation is not any better. Though the new commodities transaction tax and the correction in global commodities market are partly responsible for this, the impact of NSEL’s fallout can’t be overlooked. Samir Shah, MD and CEO of NCDEX, told Business Line, “One incident like NSEL is a big blow on the market and market gets shattered, NSEL impacted NCDEX more than MCX, because it happened in the agri sector.” The blind spots in commodities market regulation came to light only after the NSEL scam -non-existence of settlement guarantee fund, no checks to spot short trades, poor margining system, inadequate collateral for trades and no regulator willing to take the onus of regulating the spot commodities market.

The verdict

SEBI’s autonomous functioning and its ability to respond quickly to a crisis should instil confidence in commodity investors. With its powers to attach properties, arrest and detain defaulters in prison, this regulator will be able to protect the interest of small investors better. Also, since SEBI has a sound experience in handling securities derivative market over the many years now and has a larger man-power, it should be able to plug the loop-holes in the system and draw out a stronger regulatory framework for commodity exchanges.

The commodity market participants are also happy and hope that the move will help introduction of new products- such as commodity options and commodity indices and the exchange platform will be also opened to new participants like banks and mutual funds.

All this should however take time. Amendments to the various acts apart, there is also a need for understanding of the way commodities market function. And, the new regulator will have the job of establishing a spot market for commodities in India.

COMMODITY TIPS, MCX TIPS

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DAILY COMMODITY REPORT FOR 02 FEB 2015

Precious Metals

D A I L Y B U Z Z

GOLD

Gold futures posted slight gains in the domestic market on Friday after a downward revision in US fourth quarter economic growth and a retreat in US consumer confidence signaled a slowdown in the world’s biggest economy, boosting the safe haven demand for the bullion while raising speculation that the US Federal Reserve may keep interest rates at low levels for at least in the near-term, bolstering the demand for the yellow metal as a store of value. New York Fed President William Dudley cautioned the US Fed against a premature tightening of monetary policy amid low inflation. The risks of hiking rates "a bit early are higher than the risks of lifting off a bit late”, Dudley said. Gold futures may rise today as speculation of the US Fed delaying a rate hike boosts demand outlook. At the MCX, Gold futures for April 2015 contract closed at Rs 26,227 per 10 gram, up by 0.04 per cent after opening at Rs 26,240, against the previous closing price of Rs 26,216. It touched the intra-day high of Rs 26,335 till the closing.

Base Metals

D A I L Y B U Z Z

LEAD

Lead prices fell by 0.18 per cent to Rs 109.15 per kg in futures trade today as speculators booked profits. Moreover, a weak trend in base metals overseas weighed on lead prices at futures trade. At the Multi Commodity Exchange, lead for delivery in March fell by 20 paise, or 0.18 per cent, to Rs 109.15 per kg in a business turnover of 148 lots. Similarly, the metal for delivery in current month traded lower by 15 paise, or 0.14 per cent, to Rs 107.65 per kg in 126 lots. Similarly, the metal for delivery in current month traded lower by 15 paise, or 0.14 per cent, to Rs 107.65 per kg in 126 lots. Marketmen attributed the fall in lead futures to profit-booking by speculators as well as a weak trend in base metals overseas ahead of manufacturing data from China, the world's biggest consumer.

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DAILY MCX COMMODITY REPORT 08 APRIL 2014

Base Metals & Energy
D A I L Y B U Z Z
LEAD
Lead futures prices today rose by 0.20 per cent, to Rs 123.60 per kg after speculators enlarged positions amid rising spot demand.
However, metal's weakness at the London Metal Exchange (LME) also, limited the gains. At the Multi Commodity Exchange, lead for delivery in April traded 25 paise, or 0.20 per cent, higher at Rs 123.60 per kg, with a turnover of 681 lots.

The metal for delivery in May also rose by 10 paise, or 0.08 per cent, to trade at Rs 124.65 per kg, in a business turnover of 19 lots.

NICKEL
Nickel prices moved up by 0.28 per cent to Rs 986.80 per kg in futures market today as speculators enlarged their positions, tracking a firming trend in spot market on increased demand from alloy-makers even as metal weakened overseas.

At the Multi Commodity Exchange, nickel for delivery in April gained Rs 2.80, or 0.28 per cent, to Rs 986.80 per kg in business turnover of 1,616 lots. Similarly, the metal for delivery in May rose by Rs 2.70, or 0.27 per cent, to Rs 993.30 per kg in 58 lots.

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Commodity updates: Copper futures were trading in the red 22 May 2015

Commodity updates: Copper futures were trading in the red in the domestic market on Friday as investors and speculators stayed cautious over booking fresh positions in the industrial metal after a plunge in the sales of previously owned homes in the US signaled a cooling housing market recovery in the world’s biggest economy, clouding the demand outlook for copper.

Sales of existing US homes fell 3.3 per cent to a 5.04 million annualized pace in April from the previous month, data showed on Thursday.

At the MCX, Copper futures for June 2015 contract is trading at Rs 402.50 per 1 kg, down by 0.09 per cent after opening at Rs 402.60, against the previous closing price of Rs 402.85. It touched the intra-day low of Rs 402.20

Mentha oil futures erased last session’s bears and traded in strong mode during the early hours of trading on Multi Commodity Exchange [MCX] Monday on technical correction. 

Benchmark February contract in futures gained Rs 23.40 at Rs 1,090 a kg, budging in the range of Rs 1,094.40-1,075 a kg at 10:31 am IST. Volume of the contract stood at 812 lots so far.

Forward March contract traded Rs 23.60 up, at Rs 1,095 a quintal, and moved in the range of Rs 1,099-1,082. Volume of the contract so far was 233 lots.

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Mcx commodity tips: A resurgent US dollar took toll on Crude oil

Mcx commodity tips: A resurgent US dollar took toll on Crude oil as energy traders indulged in a massive sell-off in the fuel in the domestic and overseas market on Tuesday, pulling prices down by more than 3 per cent. Stronger dollar curbed the demand for the fuel as an alternative asset. Stronger greenback makes oil more expensive for those holding other currencies, thus dimming demand.

The dollar strengthened after better than expected US housing data eased concerns over a slowdown in the world’s biggest economy, powering the lure for risky assets. US housing starts surged to the highest level in more than seven years, up 20.2 per cent to a 1.14 million annual rate in April 2015.

Despite severe fighting in Syria, Yemen and Iraq, with Islamic State Militants strengthening their foothold in Libya, crude supplies from the oil-rich Middle East are increasing, exasperating fears over a global supply glut. Saudi Arabia, the world’s biggest oil producer, said that the country pumped in a record 10.3 million barrels per day of oil in March.

However, US supplies continued to ease, with oil stockpiles falling 5.2 million barrels in the week ended May 15, 2015, the American Petroleum Institute (API) reported late Tuesday.

Oil may rebound today as government data shows a further dip in US crude oil stockpiles.

At the MCX, Crude oil futures, for the June 2015 contract, closed at Rs 3,737 per barrel, down by 3.11 per cent, after opening at Rs 3,859, against the previous close price of Rs 3,857. It touched an intradaylow of Rs 3,728 till the closing.

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