Agri commodity prices may rise due to sudden Fuel Price rise.

In Mid night today, the fossil fuel price will rise by significant amount.

Agri commodities prices in general will witness a upward movement because of rise in the transportation cost due to hike in Diesel price and Petrol prices.


Diesel price hike  = Rs. 2.37/litre
Petrol Price hike = Rs. 3.96/litre

Soy oil close down in Indian Futures Market

Soy oil close down in Indian market due to profit booking and fresh selling pressure.

As discussed in earlier post this afternoon that short term correction might be seen in soy oil.

The NCDEX Soy oil June contract closes at 584.

Tomorrow some more correction might be seen.

For 22 April 2014 the following short term Technical Levels seems valid.

Support = 580   Resistance = 587

Short Term correction likely in Soy oil in Indian Market

After witnessing a positive movement since start of the April month, it seems that short term correction is due in Indian soy oil market.

Prices are getting resistance on current levels.

NCDEX Soy oil June contract :
Resistance = 591     Support = 582

Selling near current levels i.e 587 may result in to some gains in short term.

Rain Effect on Indian Agricultural Commodities Market

Recent unseasonal rains during March and early April month have caused significant damage to the standing crops which were ready for harvesting in states of central and north India.

As expected, agricultural commodities market has reacted sharply to this event.

In the first fortnight of April month, the prices rose significantly in some commodities. 

Table 1 and figure 1 given below show the extent of price rise in few important commodities in the Indian futures market.

Jeera(cumin), Chana (Chickpea) and Mustard seed have seen highest price rise among the Rabi season crops. 

The cascading effect is also seen in the commodities like soybean and soy oil.

However, in Wheat not much change is seen because the government of India has ample buffer stocks with it. Further government has also started wheat procurement at MSP.

Once the government procurement programmes end by June, the wheat market is also expected to witness significant price rise during this marketing season.

Sharp Positive Reaction in Indian Commodities Market on further crop damage due to recent rains

Recent rains and hail storm in many parts of north India during past week till yesterday has put farmers in further trouble as harvesting process of Rabi season crops like wheat is further delayed and to some extent there has been loss to the crops also.

Please note that during March and till this Sunday rains in many states particularly north Indian states have caused a considerable loss to the rabi crop production. There are also issues of quality deterioration. The extent of loss varies from farmer to farmer and state to state.

The states and central government have made an assessment of crop damage and appropriate relief measures are being taken by the concerned agencies.

This recent spell of rains/hail storm/squall has become a turning point for some of the commodities which were in search of a fresh direction in market.

And now this positive momentum seems more vigour than expected particularly in commodities like Chana (Gram), Jeera (Cumin), Mustard seed, Barley  and wheat and may last for medium term.

The cascading positive effect will also be seen in other oilseeds like soybean, edible oils like refined soy oil, crude palm oil and cotton etc.


Right now most of the above mentioned commodities are up in the range of 1 to 4% from their previous close.