Commodity picks: October 14, 2018

Soybean

Potential record production in Madhya Pradesh, bonus of Rs 500 per quintal and implementation of price deficiency payment scheme from October 19, 2018 will prompt farmers to liquidate the material aggressively, This will put pressure on prices, which could move lower to Rs 3,000 per quintal from current levels of Rs 3,216 a quintal in Indore. The downside, however remains limited due to aggressive buying by the millers at lower levels.

 

Cotton seed oil cake

Prices at the Kadi market are trading at Rs 1,995 per quintal. For the week ahead, prices are expected to fall by Rs 50-70 per quintal and head towards levels of Rs 1,935 per quintal. Lower demand from cattle feed companies, commencement of new crop arrivals and enough stocks in pipeline are likely to keep prices under pressure.