 "Commodity picks- 18 April 2016")
Mustard Seed
Mustard seed spot prices in Jaipur are trading firm near Rs 4,440 a quintal, due to good demand for oil. With positive crushing margins on increasing mustard oil prices, demand from crushers will be good. Analysts expect the rally in mustard seed to continue to Rs 4,550-4,600 a quintal.
Cotton
Cotton prices have rallied five-seven per cent after bottoming out in March, with the benchmark S6 in Gujarat (29mm) up at Rs 16,200 per bale. The gain is due to domestic demand and firm global prices. The upside momentum could continue a little longer and prices could rise to Rs 17,000 per bale in the next 10 days. But, the upside is limited, and a sudden collapse in global prices could also pose a risk.
Mustard seed spot prices in Jaipur are trading firm near Rs 4,440 a quintal, due to good demand for oil. With positive crushing margins on increasing mustard oil prices, demand from crushers will be good. Analysts expect the rally in mustard seed to continue to Rs 4,550-4,600 a quintal.
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Cotton
Cotton prices have rallied five-seven per cent after bottoming out in March, with the benchmark S6 in Gujarat (29mm) up at Rs 16,200 per bale. The gain is due to domestic demand and firm global prices. The upside momentum could continue a little longer and prices could rise to Rs 17,000 per bale in the next 10 days. But, the upside is limited, and a sudden collapse in global prices could also pose a risk.
Prerana Desai
VP ( research), Edelweiss Agri Services and Credit , Edelweiss Integrated Commodity Management Ltd
VP ( research), Edelweiss Agri Services and Credit , Edelweiss Integrated Commodity Management Ltd