Agri Commodities Review: Action Choppy, Cottonseed Oilcake Stumbles

Overall action in major agri counters remained choppy today. The big news affecting the sentiments was linked to a possible revival of a monsoon in coming days. The all-important Madden-Julian Oscillation (MJO) wave is forecast to redevelop in the coming days between tropical Africa and Central Indian Ocean. This may re-invigorate the Indian monsoon, according to the Australian Bureau of Meteorology, a widely respected MJO tracker. The MJO wave passes periodically from West to East over the Indian Ocean and is considered significant for monsoon rainfall.

In major commodities, Cotton seed oilcake tumbled 4%. Demand is fairly weak in Cotton on elevated prices.

Chana also slipped as buying is simply absent in the ready market on moderate price increases.

Mustardseed is trading mixed in last few days and dropped as a break under Rs 4000 per quintal mark hurt sentiments for benchmark July futures.

Sentiments are steady in Wheat. However, traders do not see much of a decline from hereon.

Guarseed continues to see pressure in futures market on monsoon. A massive correction in global crude oil prices is also affecting both guarseed and guargum markets.