Soybean futures are expected to trade sideways on mixed fundaments of higher arrivals and good demand for new season crop for crushing as edible oil import duty is hiked. Moreover, higher incentives for oil meal export may support soybean prices.
Mustard futures expected to trade sideways to lower on higher stocks with the oil mills and good start to rabi sowing. However, anticipation of good physical uptake by oil mills on expectation of good winter demand may keep prices supported above 4000 levels.
Chana futures to trade sideways to down on good sowing progress while higher imports data for the current FY have increase stocks in the country also pressurizing prices.
CRUDE PALM OIL :
We expect Ref Soy oil to trade sideways as prices now stabilized due to higher stocks and good domestic crushing. Moreover, higher import duty and good demand from the stockists is supporting edible oil prices at 10 months high in India despite higher stocks and record oilseed production.
CPO futures may trade sideways due to weaker international palm oil prices and reduced base import prices by the government for first half of December. Increase in import duty to 30% and 40% for crude palm oi and refine palm oil respectively has kept the prices at 10 months high.
Cotton futures are expected trade higher on reports of loss of production due to pest attack in three biggest cotton growing states. Moreover, good physical demand from the mills and traders and commencement of procurement by CCI also keeping prices supportive as it is expected to procure about 100 lakh bales.
We expect Jeera Dec futures to trade lower on expectation of further technical correction but reports of improved physical as well as export demand may keep the prices supported. Diminishing stocks with the traders and improvement in demand for Indian cumin for overseas market is supporting prices. The prices may be pressurized at higher prices on profit booking.
Turmeric futures expected to trade down on expectation of arrival of new season crop and lower than expected exports figures. Supplies from the government auctions and arrivals of medium quality supplies may keep the prices sideways.