The government issued a notification to allow imports up to half a million tonne at concessional rate of import duty @ 15%. How and why this has come now is beyond anybody’s comprehension.
Arrival flow is marginally lower in Bihar from yesterdays. Expected gulabbagh arrivals in range of 1450-1650 Mt trading @ 1180-90 for railheads and 1240-1250 for warehouses. Destination market prices are as below
Tamil Nadu :- Rake 1500-1520, Trucks 1600-1620
Bangalore :- Rake 1500-1510, Trucks 1580-1600
Hyderabad :- trucks 1560-1600.
Ahmedabad :- 1400-1450/60
Bihar :- 1180-90 Rake point, 1240-50 warehouse.
North :- 1380-1400 UP cargo for Haryana/Punjab
Sangli : -1520-1540
Telangana government expected to come out tender with increased quantities @ 2,50,000 Mt in this week or max by next week (Market sources). This would add supplies to the market.
July contract is trading at 1300 with an open interest of 2340 mt with the spot prices @ 1260. Exchange Stocks are estimated @ 700 Mt with another 150 mt in progress.
International Market :-
The Corona growth in US/Europe is taking its toll on ethanol demand and is keeping the markets trading at lower levels, cbot july contract is trading at 323 cents/bushel. The contract yesterday settled at 326 cents/bushel. Overall the demand destruction is looking imminent as India’s fuel demand is slated to be an 8 year low, similar situations are prevailing in US/Opec nations with storage coming to be utilised fully and production is far exceeding the demand.
Corona virus cases close to 17000 detected yesterday. The global spread causing the downfall in crude oil prices and subsequently having its impact on other commodities too. Sensex and Nifty were down but now are trading higher then yesterday’s closing levels by 125 points for sensex and 23 points for nifty. Rupee is trading 75.60 versus close of 75.75 yesterday.