Commodity picks: 14 September, 2020

Soybean is trading at Rs 3,835 per quintal at the benchmark Indore market; The cotton price of benchmark variety S6 is at around Rs 17,000 per bale

Soybean

Soybean is trading at Rs 3,835 per quintal at the benchmark Indore market. For the week ahead, the price is expected to head towards Rs 3,800 and then to Rs 3,775 per quintal. New crop harvest has gathered momentum. This, along with higher carry forward stocks for new season, is expected to keep the price under pressure.

Cotton

The cotton price of benchmark variety S6 is at around Rs 17,000 per bale. There is a forecast of moderate rainfall in Gujarat’s, Maharashtra’s, and Madhya Pradesh's cotton growing regions in the coming week. Early sown crop is in boll formation phase, and hence adverse weather is a risk. But, the higher price is unlikely to sustain due to impending new crop harvest. Expect the per bale S6 price to decline to Rs 16,500 or lower at the peak of harvest.

Prerana Desai, Research head, Edelweiss Agri Services and Credit