Faiyaz Hudani at Kotak Commodity Services says that default by Vietnam exporters has put the focus back on India. He is bullish on the domestic market .Regarding the futures trade, Faiyaz says that participation and volume has fallen to lower levels. The stocks at the accredited warehouses are on the lower side. Most of the traders are disturbed at the futures rate trading at a discount to the spot price, when there are virtually very little sellers in the physical market. Supply is very tight and the availability is almost minimal. Farmers may be holding back stocks or there might be a genuine shortage and we have no indication, a leading trader and exporter told FE. Most of the traders expressed their concern on the price discovery taking place at the futures exchange.
Consumption is expected to increase globally as traders in US and Europe build-up inventory for the December celebration and holidays. Nandakumar K, a trader, is bit apprehensive as he feels that Brazil and Indonesia have not sold most of their stocks. They are holding back assuming that Vietnam has very little stock left. Buyers are also adopting a wait and watch approach in anticipation of a easing of the situation, he said.