Turmeric continued to trade weak even as prices found some support at the 9800 in the futures market. With prices having fallen a lot, some short covering is not ruled out. But no strong report emerged from the mandis as exports and domestic demand remained slack. Prospects of rising arrivals of new crop kept prices down. Lack of strong demand too prevented any recovery. Short term trend looks volatile as exports are likely to remain adversely affected and expected to recover only after International markets open after Jan 1st week.
Warmer weather conditions in growing states of Gujarat and Rajasthan caused prices to recover as that could likely have adverse impact on the crop growth and productivity. The recent downtrend was mainly due to lack of exports (which is still there) and cooler weather that was noted over last few weeks. Weather in growing areas remain a very important factor for the near term market sentiments. Cool weather is beneficial for crop growth, while a warmer weather may damage the standing crop also.India's total carryover stock is currently estimated between 0.7-0.8 million bags versus 2.5 million bags a year ago. In 2015-16, sowing in Rajasthan (Jodhpur division) reported 2.42 lakh ha vs last year 2.40 lakh ha till 15th Dec.
|| SOY OIL
Moderate fall was noted for Ref Soy Oil as slight uncertainty continued to prevail for Agri commodities after the raid on hoarders for Pulses the earlier day.
Traders however anticipate the prices to pick up in coming days as overall trend remains firm in domestic and international markets.
Slight weakness persisted for Soybean from the earlier day even as International markets firmed up. Rumors of Government in MP likely to impose stock limits in coming days prevented strong recovery. However, such rumors were discarded by MP Govt. Even as overall fundamentals look slight firm, short term weakness in prices is not ruled out till clarity on the issue is there