Sugar output in the state during 2017-18 (Oct-Sep) is seen falling below 1 millionn tonne as Tamil Nadu faces the worst drought in 140 years. Last year, mills in the state had produced 1.37 millionn tonne sugar. Sugar Production in 2017-18 is likely to be even lower than the current season because of successive years of meagre rainfall in the state, a drop in cane acreage, and lower sugar recovery. Tamil Nadu received 62% below-normal rainfall during the key northeast monsoon season in Oct-Dec. Production suffer due to drought It be drastically reduced and if the current trend continues, sugar output not even touch 1 millionn tonne next year. Tamil Nadu has been producing below its capacity for the last two-three years because of water crisis and low recovery from cane. Sugarcane sowing had fallen 8.8% on year to 268,000 hactare this season due to poor monsoon rains.
India cotton import at record high.
India cotton imports have surged as global purchases seemed more lucrative, and as the strength in the rupee against the dollar encouraged mills, particularly those in south India, to aggressively import the commodity. Imports from African countries work out cheaper for mills in south India, as opposed to purchases from traders in Gujarat, Rajasthan and Maharashtra at a premium, and the added transportation cost. There was a twist in the tale in April when changing market dynamics due to a rise in global and a fall in domestic prices brought imports to a sudden halt, leaving estimates haywire. So far, 2.6-2.7 million bales have been contracted for the current season. We expect deals for another 0.3-0.4 million bales coming in the current season. Imports revive (from current lull) because of the quality issues that the mills have been facing this year. From high moisture level to contamination and adulteration, Indian cotton faces several quality issues, forcing premium textile companies to depend on imports.
All-India cotton arrivals down at 52,900 bales.
Cotton arrivals at major spot markets across the country were at 52,900 bales (1 bale = 170 kg) on Monday, down from 57,500 bales on Friday,
Brazilian Maize prodution up.
Celeres is projecting total Brazilian production at 97.71 MMT, up from the drought depressed 73.89 MMT last year. The trade average is 94.23 MMT according to composite of several surveys. The average to 2017/18 corn ending stocks is 2.189 billion bushels, but the range is all over the place at 1.8 to 2.5 billion.
NCDEX Jun maize up on short covering post 1-month low.
The June contract of maize on the NCDEX was up nearly 1% as investors continued covering their short positions after prices hit a more than one-month low on previous close. The June contract was up 0.8% from the previous close. In Bihar benchmark market of Purnea, maize was sold down 5-10 rupees from the previous day. Around 0.15 million bags (1bag=100kg) of maize arrived in Purnea and arrivals are expected to rise further till the end of May. Rabi maize prices in Telangana benchmark Nizamabad market also fell amid subdued demand from the poultry feed industry.
Govt ups 2016-17 rabi maize crop view to 6.97 million tonne.
India rabi maize output in 2016-17 (Jul-Jun) is expected to be 6.97 millionn tonne, slightly higher than 6.89 millionn tonne estimated earlier. The country had produced 6.51 millionn tonne rabi maize in 2015-16. The rise in output this year can be attributed to higher acreage and improved yield. Arrivals of rabi maize are at their peak in the major producer Bihar and about 0.1 million bags (1bag=100kg) arrive in the Purnea market daily.
NCDEX wheat ends down as govt ups 2016-17 output view.
Wheat futures on the National Commodity and Derivatives Exchange ended down as the government raised its estimate for the country wheat output in the current crop year ending June. The most-active June contract on the NCDEX ended down 0.6% from the previous close. The rise in output may be attributable to higher acreage, good soil moisture and favourable weather conditions. Arrivals in Rajasthan Kota market also fell due to rainy weather and lifted prices of mill quality wheat up 5-10 rupees from previous day. In benchmark Indore market, mill quality wheat sold up 5-10 rupees from previous close.
Govt ups India 2016-17 wheat output view to 97.44 million tonne vs 96.64 million.
India wheat production in the current crop year to June is expected to rise to a record high of 97.44 million tonne, against 96.64 million tonne estimated earlier, backed by good monsoon rains and higher acreage, as per the third advance estimate released by the agriculture ministry. Bumper harvest of wheat may push the country total food grain production to record 273.38 million tonne in 2016-17, higher by 8.7% than last year 251.57 million tonne, and surpassing the previous record of 265.04 million tonne hit in 2013-14 by a wide margin.