Buy Coriander, Cardamom, Sugar, Maize on dips: Sharekhan

Sharekhan has come out with its report on agri commodities. The research firm recommends to buy Coriander, Cardamom, Sugar and Maize on dips for short term and Sell Castor, Barley and Cotton in its report date April 23, 2013.

• Coriander witnesses a firm tone.
• However, lower production would resist the prices in long term.

• Cardamom market witnessed firm tone on short covering.
• Total arrivals and sales during the current season from August 1, 2012 to March 27, 2013 were at 10,146 tonne (15,385 tonne) and 9,645 (14,922 tonne) respectively.
• The market participants revealed that unfavourable weather affect the crop and the output is likely to be reduced by 35-45 percent. Moreover, they are expecting 17,000 tonne output this year as compared with 30,000 tonne in the last year.

• Both sugar and gur witnessed weak tone.
• China Customs General Administration states that China sugar imports in March is surged to 205.3 thousand tonne as compared from 80.6 thousand of sugar imported in February month.
• China will buy 300,000 metric tonne of domestic sugar for government stockpiles to ensure farmer’s interests and stabilize production of the sweetener.
• China Sugar Association cuts its sugar production estimates to 13MMT from 14MMT projected in November, 2012 on lower yield due to drought and low temperatures in the southwest region. However, the revised estimate is up from 11.5MMT of sugar production in 2011-12.
• London-based futures and options broker Marex Spectron said that China’s Sugar stockpile may be around 11MMT which is equals to its one year of consumption.
• South African Sugar Association estimates the sugar production in the year 2013-14 will rise to 2.31MMT compared with 1.95MMT in previous year. Sugarcane crush output seen at 20.1MMT in comparison of 17.3MMT in last year.
• Canaplan, Brazil’s crop research firm discloses that sugar output in Brazil Center South (CS) region seen at 36.5 million tonne against the 34.1 million tonne in last season. The sugarcane crop is estimated at 603 million tonne in the CS region and the ethanol output is seen at 26.1 barron litres. The millers in the region are likely to use 46 percent of cane into sugar and rest would be capitalise into ethanol.

• Weak tone witnessed in the markets.
• Maize quoted at Rs1,250 per quintal in Nizamabad, Rs1,325 per quintal in Davangere, Rs1,270 per quintal in Karimnagar, Rs1,375 per quintal in Sangli and Rs1,500 per quintal in Delhi.
• Continuous arrivals of new crop and dull demand from poultry feed makers and starch industries currently weigh on prices.
• Researcher Safras and Mercado raised the Brazilian corn forecast to 79.5 million metric tonne (MMT) from 77.3MMT estimated during March month.
• China Customs General Administration states that China’s corn import in March is down to 237,164 tonne as compared with 394,200 tonne imported in February.

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