In the oil-producing countries meeting, Nijeriya has also agreed to include in the production reduction plan. At the same time, Saudi Arabia has indicated to reduce exports next month. Russia has given statement that if the production reduction plan is fully implemented then the crude oil supply will be reduced by 2 lakh barrels.
In this case crude oil prices have got support and the price has increased by about 0.5%. Brent Crude is trading near $ 49 & WTI crude have crossed $ 46.5. today.
MCX Crude Oil is also open Positive note and its continue trade green side. At present Crude is trading at at 3010 with gain of 0.50 percent in the domestic market.
@ Buy MCX Crude Oil with current market rate near 3010 august future targets 3045, 3075 Stop Loss 2989.
Festivals have become due to more expensive Sugar. As you know government increased import duty on sugar, its prices are increasing. In just 10 days, the prices have jumped from 8 to 10 percent, Delhi or Mumbai sugar prices have crossed Rs 4 thousand in spot prices. In Delhi retail, then sugar is selling 45 rupees per kg. In just 10 days, the price has gone up to 3 months. Sugar is very cheap in the foreign market, but prices are rising in India. On demand of wrong mills, the government has increased import duty from 40% to 50%. It is also difficult to import. Now the argument is that further festivals are going to fall, hence its demand is increasing.
Other hand food oils are weak. From January this year 15 to 20 percent of the prices have come down.
This year, the prices of consecutive oil prices have come down this year. Soya oil has broken 12 percent since January, while palm oil has slumped 20 percent. It is worth noting that in spite of the bumper production of oil seeds, import of edible oils has not decreased this year. From the top, the rupee has become 5.5 percent stronger this year.
Despite the bumper production of oil seeds, heavy import of oil is going on. About 70 percent of the consumption of food is imported. The decline in the global market has affected the domestic market. In Malaysia the price of palm oil has dropped.
Dhaniya futures are expected to trade in negative note for the day. Prices may trade slightly higher in the morning session due to profit booking at existing levels. However, we expect gains to be limited in anticipation of overall weakness in the market.
On supply front, arrivals are likely to decrease further in expectation of weaker carry-over stocks during the current session.
Castor futures are likely to trade higher for the day. On demand side, fresh bulk purchasing activates are expected to improve form crushing units in expectation of increase export demand for castor oil and castor meal.
On supply front, arrivals are likely to decrease further in anticipation of weaker carry-over stocks at major producing centers.