Monsoon in India is expected to remain normal in 2018 at 100% of long period average (LPA) (for a four-month period from June to September) of 887mm, as per a forecast issued by Skymet Weather.
Monsoon probabilities for June to September period, according to Skymet, are as follows:
5% chance of excess (rainfall more than 110% of LPA)
20% chance of above-normal (rainfall between 105% to110% of LPA)
55% chance of normal (rainfall between 96% to 104% of LPA)
20% chance of below-normal (rainfall between 90% to 95% of LPA)
0% chance of drought (rainfall less than 90% of LPA)
Reacting to this news, shares of fertilizer companies soared on the exchanges as the demand for fertilizers and agri-inputs is highly correlated with the level of monsoon rainfall. Shares of Deepak Fertilizers & Petrochemicals
, Fertilizers and Chemicals Travancore
(FACT), and Rashtriya Chemicals & Fertilizers
were up 8.01%, 0.71%, and 0.85%, respectively, at 11.13 am on the BSE.