Rice prices in India and Vietnam advanced while Thailand prices dropped due to a weaker baht.

In India, the world’s biggest rice exporter, 5% broken parboiled rice prices rise as demand improved from African buyers. Competition between exporters and local buyers is keeping paddy prices firm. Along with private buyers, govt agencies are actively buying paddy for the public distribution system, pushing prices up above the MSP. Country’s rice production in 2016/17 is likely to rise by 4.3 percent to a record high 108.86 million tonnes. In Vietnam, the world’s third largest rice exporter, 5% broken rice prices rise on thin supply near a new harvest season. Prices in Vietnam now are higher than other countries, keeping foreign importers from buying. Vietnam’s market was quiet but will be more lively once the harvest season starts by the end of this month. The harvest season will significantly raise supply, which in turn will ease prices.Thailand benchmark 5% broken rice narrowed to free-on-board, Bangkok. It was due to the Thailand baht weakening against the U.S. dollar. Thailand sold 1.35 million tonnes of rice from state stockpiles in its first auction of the year. There will be another auction for 3.66 million tonnes of spoiled rice for industrial use. Thailand has exported about 2 million tonnes of rice this year, down 2.05% from the same period last year. (Source : Times of India )

Saudi Arabia tenders to buy 720,000 tonnes wheat.

Saudi Arabia’s main state wheat buying agency, Saudi Grains Organization, has issued an international tender to purchase 720,000 tonnes of hard wheat. At least part of the purchase could be sourced in Germany and ship loadings have shown large shipments of German wheat moving to Saudi Arabia which seem to indicate parts of previous tenders were supplied with German wheat. But Poland has also emerged as a major exporter recently and so it is not easy to assess the likely origins which will be selected.

Indian wheat imports to remain rapid, despite near-record crop hopes.

Indian wheat imports will remain at the current elevated level next season, despite a near record harvest, with stocks depleted after years of production deficit. Indian wheat imports for 2017-18 at 5 million tonnes, unchanged from 2016-17, even though domestic production is seen jumping by 8 million tonnes. Indian wheat production is set to hit near record levels, of 95 million tonnes, increase in production is the result of record large sowings, of 31.8 million hectares. Import of wheat in the forecast year 2017-18 will continue to sustain the consumption demand, contain domestic prices and help government to augment the declining wheat stocks. (Source : Agrimoney )

Hailstorm damages wheat, mustard in Bhiwani.

Hailstorm in several villages of Bhiwani district damaged mustard and wheat crops. Hailstorm in Kharak, Bamla, Purnapura, Nangal, Sanga, Kont, Norangabad, Umrawat and several other villages of the district. Mustard crop, which is at the ripening stage, had suffered maximum damage. Entire field of mustard, which was ready for harvesting, has been damaged by the hail. The pods were severed due to the hailstorm, even the wheat crop was flattened due to inclement weather.

Wheat prices fall in spot, futures as supplies increase.

Prices of wheat fell in both spot and futures markets as supplies across the country are rising and demand from bulk buyers is weak. In Indore, new crop arrivals had started last month, supplies are rising each day and prices are getting lower. About 8,000-10,000 bags (1bag=100kg) of wheat arrived in Indore, up from 7,000-8,000 bags. To support falling prices, Madhya Pradesh govt will start procuring wheat from farmers at a MSP from March15.

Wheat open market tender average price falls in Delhi.

Under govt’s last open market sale for 2016-17 (April-March), the average price of wheat in Delhi fell in this week’s tender in which govt sold around 16,000 tonne of wheat in Delhi. Average price of the food grain fell because of anticipation that demand might shift to the new crop, which is expected to start arriving in Delhi next month. Arrivals of the new crop have already started in some parts of Madhya Pradesh and are likely to peak across the country in the beginning of April. Total quantity of wheat offered by the govt through open market sales in the country in March was at 85,600 tonne, while the actual sale was of 74,350 tonne. Wheat stocks in the govt’s central pool at a multi-year low of 11.55 million tonne as of Feb 1, 2017, compared to 20.34 million tonne a year ago.

NCDEX coriander up on bargain buying, low arrivals.

Futures contracts of coriander on the NCDEX rise as investors bought the commodity after prices hit a one-week low. Coriander futures also gained because arrivals in Rajasthan spot markets almost halved to 25,000 bags (1bag=40 kg) compared with 47,000 bags. Most active April contract of coriander on the NCDEX was up 0.4% from the previous close.

Barley prices in Jaipur at 1-week low on high supply.

Barley prices in Jaipur hit a one-week low as arrivals of the new crop increased and demand from stockists and the feed industry was lacklustre. Arrivals of the new crop estimated at 7,000 bags (1bag=85kg) compared with 5,000 bags. Limited purchases from the malt industry also weighed on prices.

Romania/Barley exports were two times lower y/y.

In Dec 2016 Romania exported 47 KMT of barley compared to the record shipments for this month observed in December 2015– 130 KMT and almost all December volume was shipped to Israel– 25.5 KMT and Syria– 13 KMT. Thus, the beginning of 2016/17 (July-December) Romania exported 722 KMT of barley, which was almost two times lower than over the same period last season (1401 KMT) due to the lower demand from key importers. Shipments decreased in all key export destinations. Saudi Arabia, Libya, Jordan and Tunisia lowered purchases, while shipments to Israel, Spain, Vietnam and Syria increased last season.

Philippines estimates rice import requirement at 800,000 MT.

National Food Authority (NFA) is looking to import around 800,000 metric tons (MT) of rice this year under a government-to-government arrangement to cover the lean months in the third quarter. Critical stock levels of the staple grain in government warehouses and inventory in government warehouses was 400,000 MT. Stocks have thus fallen below the buffer stock the agency is mandated to maintain. Some places will have very tight supply by April and May. By end of June, the NFA’s buffer stock will be short so there is approval of the 250,000 MT importation which need to utilize by June this year and the remaining standby volume to cover the gap in buffer stock requirement. Of this total, only 250,000 MT has been activated with the top exporting countries, Vietnam and Thailand, clinching the bid.