Sunil Katke, Head Commodities & Currency at Axis Securities, believes the worst of 2020 is over and 2021 will be a year, which will bring in good demand.
“This year looks bullish for most of the agricultural commodities from the domestic consumption as well as from the global demand perspective,” he said in an interview with CNBC-TV18.
According to him, the positivity on global front as well as on the domestic front for the edible oil segment should remain firm and buying on dips is something that can be looked at.
“Soyabean oil prices have taken up very well. We are expecting the prices to stay firm. We are expecting the soya oil prices to stay firm and we expect the prices to trade close to Rs 1,200-1,250 in the coming months. On the Crude palm oil (CPO) front Malaysia has seen good data on the export front. For CPO domestically the prices may again come back to Rs 1,000 from the current level of Rs 960,” he said.
“Rs 1,140-1,150 can be a good entry level for soya oil. CPO, Rs 940-950 can be a decent entry level and soya oil can be targeted towards Rs 1,250 in three-six months’ time and CPO possibly Rs 1,000-1,050 can be a target,” he said.
On chana, he said, “For the year, I believe chana may touch the levels of Rs 4,800-5,000 as we move ahead because the demand will certainly pick up. We are not importing chana from Australia because of higher tariff rate. So domestic consumption should drive chana prices up.”
In terms of cotton, Katke mentioned, “Gujarat farmers have stopped picking up cotton and kind of switching over to winter crop. That should support cotton prices and domestic demand for cotton should remain firm as the textile mills have started working on their 100 percent capacity. We may expect cotton prices to stay firm and possibly Rs 2,100 can be a target in the near-tem.”
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