Soyabean likely to trade with upside bias; Sugar to remain stable

Turmeric futures (Dec) may trade with an upside bias & can test 7450 levels. The arrival of turmeric to Erode markets increased on Thursday. After a few months, the price of the spice touched Rs.9,000 a quintal yesterday and 1,300 bags arrived for sale and 80 per cent was sold. The price of the finger variety increased by Rs.200-400 a quintal and that of the root variety by Rs.50-200. At the Erode Turmeric Merchants Association, the finger turmeric traded at Rs.5,531-9,088 a quintal; the root variety Rs.5,314-8,008.

Jeera futures (Dec) is likely to trade in the range of 18350-18900 levels & the upside may remain capped with reports of higher sowing in Gujarat. Cumin sowing in the state as on November 23 reached at 9.91 lakh hectares, sharply up from 1.74 lakh hectares same period a year ago.

Coriander futures (Dec) might remain trapped in the range of 7870-8200 levels following bearish sentiments of dull demand in the spot markets. A bearish tone witnessed in coriander at the major markets of Rajasthan, whereas Guna market of Madhya Pradesh observed negligible trade amid no supply. Activity in spot markets of Rajasthan was mostly dull as liquidity crisis still persists with buyers.

Soybean futures (Dec) is expected to trade with an upside bias in the range of 3100-3140 levels. There are talks that India may receive export orders as disparity with Argentine soymeal has reduced to $1 from $2 in last one week. As per market source India has received 2.5 to 3 lakh tonnes of export orders of soymeal for November-December delivery. On CBOT, U.S. soybean futures finished down 2-1/2 cents at $10.29-3/4 a bushel. Soybeans sagged on expectations for a slowdown in export demand for U.S. supplies, along with generally favorable South American crop weather. Mustard futures (Dec) will possibly trade in the range of 4750-4850 levels. Demand of mustard oil is likely to improve in mid december as it is highly consumed during winter season. Mustard oil cake demand is still on higher side from cattle feed manufacturer and the availability of mustard oil cake is also less on limited crushing pushing the prices higher.

Refined soy oil futures (Jan) is likely to trade with an upside bias in the range of 728-735 levels, while CPO futures (Dec) may trade with an upside bias in the range of 553-560 levels. The outlook for soy oil is strong as stock at various ports were reported lower by 80,000 tonne on Nov 21 at 1.83 lakh tonne, against average of 2.62 lakh tonne since July. At the spot markets, edible oils continued their uptrend on renewed demand amid expectation of higher volumes. Weakness in the rupee continued to weigh as imports became costlier.

Sugar futures (Dec) may witness a consolidation in the range of 3430-3470 levels & remain stable tracking positive fundamentals of the sweetener on the overseas market. Sugar prices ruled unchanged on routine demand-supply. Vashi traders made limited fresh commitments as local demand eased due to shortage of currency notes. Naka and mill tender rates also remained flat. Freight rates were steady. Arrivals were at 55-57 truck loads and local dispatches were about 56-57 loads. Inventory at Vashi market remained stable at 105-110 truck loads.

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