May 28 Bangladesh received a lowest offer of $406.48 a tonne from Singapore-based Agrocorp International in a tender that opened on Sunday to import 50,000 tonnes of white rice. Five traders competed for the tender issued by the Directorate General of Food at a time when local rice prices have reached record highs and state reserves are at 10-year lows.
South Africa maize output seen doubling to record harvest.
South Africa will likely harvest a record 15.6 million tonnes of maize in 2017, double last year output after favourable weather conditions lifted yields. The fourth production forecast for the season, which is almost 6% higher than market expectations of 14.73 million tonnes, will be the largest crop since 1981 which reached 14.656 million tonnes. The staple white contract for September fell 2.35% to R1,794 per tonne, about 65% lower than its record of over R5,200 in January last year. The forecast may further depress maize prices, which will help break inflation and food prices while cutting the margins for farmers.
Dairy body buys maize at 1,754-1,844 rupee/100 kg.
The National Cooperative Dairy Federation of India bought 500 tonne maize at 1,844 rupees per 100 kg and another 350 tonne at 1,754 rupees per 100 kg through an online auction. The commodity, which is used as cattle feed, was bought on behalf of the Kerala Co-operative Milk Marketing Federation. The federation, which has nearly 200 dairy cooperatives as its members, has developed an online trading platform to purchase feed stock and sell dairy products.
NCDEX maize contracts down 1% tracking spot market.
Active August contract of rabi maize traded down 0.8% from the previous close. The July contract traded 0.4% lower. Prices fell in the spot market because of rise in supplies. In the benchmark market of Purnea, Bihar, the grain was quoted down 10 rupees. Arrivals of the grain were pegged at 4,000 tonne, compared with 3,000 tonne on previous close. Arrivals have gained pace again now, after the rains and demand is also good for the fresh arrivals in markets.
Egypt procures 2.9 million tonnes local wheat since start of season.
Egypt has procured 2.9 million tonnes of wheat from local farmers since the harvest began in mid-April. The local procurement season runs until July and targeting between 3.5 million to 4 million tonnes of local wheat this year. Egypt consumes 9.5 million tonnes of wheat to make its subsidised bread, 4 million tonnes from the local harvest and 5.5 million tonnes from imports.
Canada ups 2017-18 wheat supply estimate 1% from April.
Agriculture and Agri-Food Canada, a government agency, has raised its estimates for Canada wheat supply in 2017-18 (Aug-Jul) to 36.51 million tonne in its May forecast, up 1% from its April view. the country total wheat exports, including durum quality, are seen at 20.9 million tonne in 2017-18, down nearly 1% from its earlier forecast due to lower-than-expected demand for the grain.
Russia year to Jun wheat export seen at record high.
Russia wheat exports are likely to touch a record high of 27 million tonne in 2016-17 (Jul-Jun). Wheat exports from Russia have already beaten last year record high of 25 million tonne. The USDA has also forecast Russia to be the world second-largest wheat exporter in 2017, with total overseas sales of 28.0 million tonne. Russia wheat exports are higher than last year as the government has scrapped the 50% export duty on the grain. Exports were supported by a weak rouble which makes Russian grain cheaper for foreign buyers, and by poor output in Germany and France.
Wheat rises on NCDEX on short covering, flat in spot.
June wheat contract ended up 0.6% from the previous close, as traders covered their short positions after prices fell in last four sessions. Demand from states in the southern part of the country is weak, as these states have huge stocks of imported wheat at ports. Prices, however, remained unchanged in the wholesale markets.
India Food ministry proposes 4.8-4.9 million tonne open market wheat sale FY18.
The food ministry has proposed to offer 4.8-4.9 million tonne wheat under the open market sale scheme during 2017-18 (Apr-Mar) marketing year. The ministry has proposed selling the grain at a base price of 1,791 rupees per 100 kg, including a minimum support price of 1,625 rupees, 125 rupees for incidentals, 41 rupees for loading and unloading. The sale is expected to begin by mid-June. In 2016-17, government sold 4.6 million tonne wheat at a base price of 1,640 rupees per 100 kg, against the initial plan to sell 6.5-7.5 million tonne. The Food Corp of India releases wheat and rice in the open market to boost supply of grains during the lean season and keep a check on market prices.
IGC ups India FY18 wheat output estimate to 96.5 million tonne vs 95.5 million tonne.
Despite a good production at home, the IGC has raised its forecast for India wheat imports in 2017-18 to 3.0 million tonne from 2.0 million tonne projected a month ago. The IGC has pegged global wheat output in 2017-18 at 735.9 million tonne, marginally down from 736.3 million tonne estimated earlier. The reduction in wheat output estimate may be attributed to cuts for the wheat crop in the US and the EU. The council has pegged global wheat consumption in 2017-18 at 737.8 million tonne, marginally higher than 737.6 million tonne estimated earlier. A higher consumption is likely to drag world wheat closing stocks to 238.6 million tonne in 2017-18 from 239.0 million tonne estimated a month ago.
Punjab records 11% higher yield of wheat this year.
Even as the area under wheat crop has decreased in Punjab, the state has recorded 11% higher yield in comparison to previous year and the highest production of crop in the past five years. productivity of wheat has increased from 4,700 kg per hectare last year to 5,047 kg per hectare this year. Production of wheat has reached around 177 lakh metric tonne (MT) this year, which is the second best in the history of state. Notably, the highest production of 180 lakh MT was witnessed in the state in 2011-12. The combined production of wheat and paddy crops is highest ever at 303 lakh MT.