Commodity picks- 30 May 2016

Maize
Maize in the Gulabbagh (Udaipur, Rajasthan) market are trading at Rs 1,314 a quintal. Prices are expected to trade higher towards Rs 1,350 a quintal in the coming weeks, after tight supplies of overall feed grains and lower rabi maize production in south India. A likely pick up in poultry feed demand from June will also suport the price rise

Cotton
Benchmark cotton S6 is curently quoting at around Rs 17,300 a bale. With a rise in prices in global markets, such as in the US and China, Indian prices are also likely to find support. Despite the current lean season, India remains a net exporter, as the import parity is not very attractive. This makes the demand and supply balance tight before the new season begins in October. Expect spot prices of S6 to rise towards Rs 18,000-18,300 in the next week to 10 days.

 

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Prerana Desai,
V-P (Research) Edelweiss Agri Services and Credit, Edelweiss Agri Value Chain Limited