Most down on weak export; coriander up on fall in area
Govt notifies eligibility criteria for sugar mills to avail subsidy.
ICE raw sugar at 4-mo high on strong Brazilian real.
Down in north India on weak demand, unch in Maharashtra.
India soybean supply seen dn at 250,000 bags.
Indore soybean dn as arrivals seen rising in state.
India Edible Oil, All down; NCDEX soybean ends 1% lower on CBOT cues.
Poor rainfall and scanty water levels in reservoirs at major growing regions are likely to hit production of rabi crops this year. The country’s crucial southwest monsoon season ended with a deficit of 9%, missing the India Meteorological Department’s prediction by a huge margin. The country received 804.0 mm rainfall during the Jun-Sep monsoon season, against the normal weighted average of 887.5 mm. Poor rains lead to inadequate soil moisture, which is a must for sowing of rabi crops. Reservoir levels are also important for the irrigation-dependent rabi season that starts October. While the reservoir storage in most states is “healthy”, there is a shortage in Gujarat, West Bengal and Maharashtra due to poor rains. Deficient reservoirs raise some concern for the rabi crop because these three states together contribute 53% of the rabi production of foodgrains and oilseeds. However, the overall crop output may be higher as “kharif production estimates are healthy.
The total production of Kharif pulses is estimated at 9.22 million tonnes which is lower by 0.12 million tonnes than the last year’s production of 9.34 million tonnes. However, kharif pulses estimated production is 2.67 million tonnes more than the last five years average production.
This is higher by 1.74 million tonnes than the last year’s production of 97.50 million tonnes. Further, it is higher by 6.64 million tonnes over the average production of Kharif rice during the last five years.
Madhya Pradesh government will provide 750 rupees per 100 kg subsidy to farmers on purchase of certified wheat seed for sowing in 2018-19 (Jul-Jun) rabi season. Farmers may buy certified wheat seeds from cooperative societies mostly under Rashtriya Krishi Vikas Yojana and in some districts it is also given under the National Food Security Mission. Wheat grown in the state have high level of protein content than grown in Uttar Pradesh, Punjab and Haryana, among the major growers.
Futures contracts of maize on the NCDEX ended lower due to profit booking after rising in the last two sessions. On the NCDEX, October delivery maize contract ended 6 rupees lower at 1,388 rupees per 100 kg. Bulk demand from starch and poultry industry has reduced in spot markets due to less availability of good quality stocks. Fresh crop arrival has commenced in some parts of Karnataka, a leading grower of the coarse grain in the kharif season, but the moisture content is too high at present. The new crop has moisture content of 28-30%, while the desirable level is only 14-15%. Both the quantity and quality of the fresh crop arrivals are expected to improve from the next month, when harvest peaks.
The latest report of United States Department of Agriculture (USDA) stated that despite the slightly higher-than-anticipated planting of kharif corn, MY 2018/19 forecast for corn production is unchanged at 26 MMT due to expected lower yield, compared to last year due to patchy monsoon in western India, and reports Fall Army Worm (FAW; Spodoptera frugiperda) in corn producing states in southern India. The governments provisional planting report for the period ending September 20, 2018, estimates the kharif corn planted area at 7.92 million hectares compared to 7.93 million hectares during the corresponding period last year, but higher than the five-year historical average of 7.89 million hectares. However, deficient rains during July delayed planting of corn in most of the growing states, while prolonged dry spells during critical crop growth and reproductive stages of the crop in some parts of Karnataka, Maharashtra, and Gujarat are likely to affect yield prospect. MY 2017/18 corn exports are estimated marginally higher at 900,000 MT based on the latest available official export figures. According to available trade estimates from the Global Trade Atlas, MY 2017/18 corn exports through June 2018 are estimated at 742,000 MT compared to 389,000 MT during the corresponding period last year, mostly to neighboring Nepal and Bangladesh, with small quantities going to south Asia. Market sources report that exports during July 2018 were steady around 100,000 MT. With exports likely to taper down in the last quarter on rising domestic prices, MY 2017/18 exports are likely to reach 900,000 MT