We expect Jeera Dec futures to trade lower on expectation of further technical correction as sowing progress is encouraging in Gujarat. Recently, export demand drive prices to all-time highs coupled with diminishing stocks with the traders also supporting prices.
Turmeric futures expected to trade sideways to down on expectation of arrival of new season crop and lower than expected exports figures. The turmeric prices may get support from the up country demand however supplies from the government auctions and arrivals of medium quality supplies may keep the prices sideways.
Cotton futures are expected trade sideways on mixed fundamentals of higher arrivals and 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.
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.
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.
Soybean futures are expected to trade sideways to higher on good demand for new season crop for domestic crushing as edible oil import duty is hiked. Moreover, higher incentives for oil meal export and higher estimates for meal exports will also 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.