Commenting on the agri commodity outlook, broking firm SMC Global said the following:

Spices: Turmeric futures (July) may trade range bund owing to some profit booking from higher levels. At the spot market, no procurement has been made by the govt. as farmers are not willing to sell turmeric at Rs 4,000 a quintal, on the MSP declared by the govt. Pepper futures (July) is expected to trade below 41,500 levels, carrying a bearish bias. Exporters from Vietnam have not been able to cover as much quantity as required. However, the demand side has been slow. Spot prices remained steady at the previous levels in matching demand and supply situation at Rs 38,800 (ungarbled) and Rs 40,300 (Garbled) a quintal. Indian parity in the international market remained at around USD 7,450 a tonne (c&f) for the Europe and about USD 7,750 a tonne (c&f) for the US. Jeera futures (July) is expected to trade with a bearish bias and remain below 13,900 levels on profit taking. There is also pressure in the physical market, due to ongoing arrivals.

Oilseeds: Soybean futures (July) is expected to trade range bound taking support above 3,700 levels. At the spot markets, Soy bean traded at Rs 3,300-3,800 per 100 kg in the major markets of Madhya Pradesh and at Rs 3,500-3,900 per 100 kg in Maharashtra .Arrival stood at 70,000 bags in MP and 10,000 bags in Maharashtra and 10,000 bags in Rajasthan. On the international platform, U.S Soybean futures softened into the close to finish mixed. Nearby contract closed fractionally higher, with new-crop futures ending roughly 1 to 5 cents lower on light profit-taking pressure. Early strength was tied to weather concerns, as a heat dome is building across the growing Belt, increasing stress on the crop. But in late trade, strength in the dollar and nervousness ahead of USDA`s key Friday reports triggered a round of profit-taking. Malaysian crude palm oil futures edged down on Wednesday as investors bet a summit of European leaders later this week is unlikely to resolve the region`s lingering debt crisis soon. Refined soy oil futures (July) is likely to trade sideways and remain above 752 levels. Poor monsoon in the oilseeds growing areas, and strong dollar making import parity costlier are supporting the sentiment.

Other commodities: Sugar futures (July) is likely to trade in range of 2,890-2,940 levels. Investors and market participants are now waiting for announcement July-September quarter free sale quota. Moreover, expectation of higher festival demand next month for the premium variety sugar kept mill tender rates firm. Naka and tender rates were up by Rs 5-10. Chana futures (July) is likely to trade higher taking support above 4,240 levels on hopes of a rise in consumer demand during the approaching ramadan festival and on fears that the below average monsoon rains could adversely impact pulses output in the country. Though Chana is a Rabi (winter-sown) crop, it takes cues from monsoon and the sowing of Kharif (summer-sown) crops.

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