Commodity picks: 23 May 2016

Soyabean

Soyabean spot prices at Indore have been trading in a narrow range with a negative bias. Soya meal supply continued to outpace demand thus lowering demand from processors for seed. Oil prices remained under pressure due to lethargic consumption as temperatures remained high. Lean seasonal demand period for both oil and meal continues to weigh on seed demand from plants. Further, expectation of above normal monsoon has raised acreage prospects for soyabean. As a result, soyabean prices may remain under pressure and head towards Rs 4,000 per quintal level.

Cardamom

Cardamom prices in Vandanmedu (Kerala) market are expected to trade higher towards Rs 810 per kg in the coming week. Supplies for the upcoming season are expected to be lower due to dry weather observed during January to March across major growing regions in Kerala. Lower production in Guatemala (central America) should also support export demand from India, keeping prices higher.
Prerana Desai, V-P (research), Edelweiss Agri Services and Credit, Edelweiss Agri Value Chain Limited