Prices of sugar rose in the key wholesale markets of Muzaffarnagar and Mumbai, as demand for the sweetener improved at low prices, and as Stuckists sought to replenish inventories at the start of the month. In Muzaffarnagar and Delhi, sugar was sold up 10 rupees from previous close. In Mumbai, sugar was sold up 5 rupees from Monday. In Maharashtra, where prices had fallen for the last one week, demand also rose due to buying at lower price levels. In north India, soaring prices are unlikely to sustain due to record high sugar output in Uttar Pradesh. Mills across Uttar Pradesh produced 8.70 million tonne of sugar during Oct 1-May 1, up 28% from a year ago. The government had on Apr 5 allowed duty-free import of 500,000 tonne of raw sugar under the tariff rate quota. The most-active May contract was up 0.2%.
Uttar Pradesh Oct 1-May 1 sugar output 8.7 million tonne, up 28% on year.
Mills across Uttar Pradesh produced 8.70 million tonne of sugar during Oct 1-May 1, up 28% from a year ago. The state had produced 6.80 million tonne sugar during the corresponding period a year ago. Mills in the state have crushed 82.04 million tonne cane so far, compared with 64.08 million tonne in the year-ago period. Average sugar recovery in Uttar Pradesh as of Monday was 10.61%, slightly higher than 10.60% a year ago. Of the 116 sugar mills in the state that started cane crushing operations this year, 102 mills have wound up the process so far. With some mills in Uttar Pradesh still operating. Market participants expect output of the sweetener in the state this season to touch an all-time high of 8.80 million tonne, surpassing the previous high of 8.47 million tonne in 2006-07.
Pakistan to give 38,000 tonne seeds to cotton farmers.
The government of Pakistan is set to distribute 38,000 tonne of certified and approved cotton seeds to the farmers across the country to enhance output. This year cotton crop production target was at 14.40 million bales (1bale=170kg) as compared to the production targets of 14.1 million bales in 2016. To achieve maximum crop output, the government ensure supply of 100% certified cotton seeds to farmers, during the current kharif season. Pakistan is the India second largest cotton export destination.
NCDEX kapas, cotton oilcake down on stockists selling.
The April contract of kapas fell on the NCDEX because of panic selling by stockists in anticipation of higher acreage under the crop this season. The most-active April contract of kapas on the NCDEX was down 0.8% from previous close. On the MCX, the May contract of cotton was at 20,660 rupees per bale (1bale=170kg), down 0.3%. The May contract of cottonseed oilcake, a derivative of kapas, was down 0.9% on the NCDEX. Acreage under cotton is estimated to increase this year in Gujarat and Maharashtra due to lucrative prices. In Gujarat, the largest cotton producing state, the acreage under cotton is estimated to increase by at least 5% if the initial response to seed purchase is any indication.
NCDEX coriander hits 3% lower cap on subdued demand.
Futures contracts of coriander hit their 3% lower circuit on the NCDEX today because of subdued demand from domestic consumers. The fall was also triggered by a 159-tn rise in inventories at exchange accredited warehouses to 25,984 tn. On the NCDEX, the most active May contract was down 2.3% from the previous close.
Coriander prices rise in Kota as arrivals halve.
The prices of coriander rose in Kota, the benchmark market in Rajasthan, as arrivals halved to 2,000 bags (1bag=40kg). Prices of coriander also increased on expectations of lower output in 2016-17 (Oct-Sep). Traders have pegged India coriander output this year at 9 million bags, compared with 10 million bags a year ago. In Kota, the Badami variety of coriander and the Eagle variety both sold up 100 rupees from previous close.
NCDEX Jun maize down on profit booking, spot cues.
The June contract of maize on the NCDEX fell as investors booked profits after prices rose. the June contract was trading down 1.7% from the previous close. Prices had risen due to firm demand in spot markets amid lower supplies. Maize prices also tracked losses in wholesale markets. In Bihar key Purnea market, the coarse grain was sold down 10-15 rupees from the previous day, Maize prices in Telangana benchmark market of Nizamabad, however, rose amid a decline in supplies and firm demand from the poultry feed sector. Arrivals of the coarse grain more than halved in Nizamabad today to 600 bags (1bag=100kg).
Maize prices down in Purnea as arrivals rise.
Prices of maize fell in the key wholesale market of Purnea in Bihar as arrivals picked up. In the Gulab Bagh market of Purnea, the coarse grain was sold down 10-15 rupees from Previous close. Arrivals at the mandi were estimated at 3,000 tonne, up from 2,600 tn. Higher arrivals of maize owing to a record production of maize this year is keeping the sentiments bearish for the rabi crop. Farm ministry has pegged India maize output at 26.15 million tonne in 2016-17 (Jul-Jun), up from 22.57 million tonne a year ago.
Jul CBOT wheat hits 2-mo high on crop damage in US.
All contracts of wheat on the CBOT were trading nearly 1% higher with the most active July contract hitting a two-month high due to crop damage in the US. The July wheat contract was at $4.6075 a bushel, up 1.1% from the previous close. Snowfall in parts of Kansas and Oklahoma over the weekend damaged the wheat crop. Heavy rains and elevated temperatures also delayed wheat sowing in some parts of the country.
Tunisia Buys Wheat Through Tender.
Tunisia has bought around 75000 tonne of soft milling wheat in three consignments of 25000 tonne each. The first consignment was bought at $173.85/T C&F, second at $186.73/T C&F and third at $189.58/T C&F. The sellers were Europemarkets, Bunge and Nidera.
Fall in Russian Milling Wheat Prices.
Export prices for Russian milling wheat decreased by $1 per tonne on weekly basis. Russian wheat with a protein content of 12.5% and 11.5% for April- May delivery settled at $186-188/tonne FoB and $181-183/tonne FoB respectively. Milling wheat prices kept on falling in Russia due to strengthening of Rouble and sufficient market supply. Furthermore, millers have enough stocks to keep prices down.
Haryana Arrival Update.
Until 01st May over 69 lakh tonne of wheat have arrived in Haryana compared to 64.59 lakh tonne for the same period last year. Traders and government agencies have purchased 5874 tonne and 69.27 lakh tonne of wheat respectively. Of the total quantity procured by government agencies around 17.02 lakh tonnes has been procured by food, civil supplies and consumer affairs department, 24.72 lakh tonne by HAFED, 8.23 lakh tonne by FCI, 6.36 lakh tonne by Haryana Agro Industries corporation and 12.91 lakh tonne by Haryana warehousing corporation. Sirsa is the leading district with 9.69 lakh metric tonne of arrival
Low supply lifts Indore wheat price; down in Delhi.
Wheat prices in the benchmark market of Indore rose due to a decline in supplies. In Indore, the grain was sold up 10-20 rupees from the previous day. Around 5,000 bags (1bag=100kg) of wheat were brought to Indore markets down from 7,000-8,000 bags. Wheat prices in the key wholesale market of Delhi fell because supplies from Uttar Pradesh and Punjab are on a rise. Wheat was quoted down 15 rupees from the previous day. Arrivals were at around 50,000 tonne up from 40,000 tn. The most active May wheat contract on NCDEX had hit a two-month low down 0.9% from previous close. The July wheat contract on CBOT was at $4.58 a bushel, up 0.6% from previous close.
Govt FY18 wheat procurement up over 18% on year at 25 million tonne.
The government has procured 24.66 million tonne of wheat across the country so far, this marketing year started April. The procurement is 18.3% higher than in the year-ago period, as production in 2016-17 (Jul-Jun) is seen at a record high. Procurement by the government was the highest in Punjab at 10.92 million tonne, up 10.4% from a year ago. Haryana was the second, at 7.06 million tonne, up 9.2% on year. In Uttar Pradesh, where the state government expects to procure a whopping 8 million tonne of wheat this year, 904,704 tonne has already been procured. The purchase is 152.8% higher on year. In Madhya Pradesh, another major producer, the government has bought 5.06 million tonne of the grain so far, up 39.1% from the year-ago period. In Indore, the grain was sold up 10-20 rupees from Saturday. Overall, the central government has set a target to procure 33.0 million tonne of wheat in the current marketing season, up from 22.9 million tonne on year.