Futures contracts of cotton traded higher on the MCX as investors covered their short positions. The front month June contract had hit a five-month low of 19,470 rupees per bale (1bales=170kg) giving traders an opportunity to buy at lower levels. Expectations of higher output in 2017-18 (Oct-Sep) due to increased acreage across the country pushed prices lower. Gains in cotton futures on the ICE also aided the sentiment. On the MCX, the July cotton contract was at 19,730 rupees per bale (1bale=170kg), up 0.2% from the previous close, while the most-active December contract on ICE was at 67.66 cents per pound, up 0.43%.
India cotton area 2.47 million hectares up 30% on year.
Cotton acreage in the country was up 30% on year at 2.47 million hectares as of Thursday, according to sowing data for 2017-18 (Jul-Jun). Attractive returns for the commodity prompted farmers to switch from pulses, especially pigeon pea, in most parts of the country. Progress of monsoon rains in key growing areas also helped in sowing. Gujarat, Maharashtra, Madhya Pradesh, and Telangana are among leading growers of the crop where monsoon is progressing well. The government has targeted to produce 35.50 million bales (1bale=170kg) of cotton in 2017-18 (Jul-Jun), higher than last year 32.58 million bales.
LT Foods to starts opening at 60,000-tn rice plant in Netherlands.
The company inaugurate a rice plant of 60,000-tn initial capacity at Rotterdam in Netherlands. The company would process varieties such as Basmati, Thai, Jasmine and American rice at the new plant. Shares of the company traded at 68 rupees, up 5.8%, on the National Stock Exchange.
Paddy acreage up 4.5% on year on good monsoon progress.
India kharif paddy acreage was up 4.5% on year at 1.67 million hectares due to good progress of monsoon rains across major growing regions. Southwest monsoon rains have been near normal so far and according to the India Meteorological Department, the currents are likely to cover most parts of the country in the next two to three days. Typically, monsoon covers the entire country by Jul 15.
Romania hot weather may damage corn crops.
Elevated temperatures (2-4ºС above normal) were observed in the country last week. The average daytime air temperature was within 19-31ºС. Moisture supply available to corn plants (0-100-cm soil layer) is at good and fair levels almost all over corn growing regions. Local shortages are reported in the south-west and south-east. Excessively hot weather (32-35ºС) is expected in the country key growing regions this week. It may damage corn crops.
South Korea purchased 60,000 tonnes of corn sourced from South America in a tender.
Korea Corn Processing Industry Association (KOCOPIA) purchased about 60,000 tonnes of corn expected to be sourced from South America in a tender which closed on Tuesday. The corn was purchased at about $177.50 a tonne c&f including surcharge for additional port unloading. Seller was trading group Midstar. The corn was for arrival around October 15.
US North Dakota corn bushels from 2016 could affect corn prices.
North Dakota farmers have sold a lot of corn, but the amount of crop left after last year record production could wreak havoc on local prices. The U.S. Department of Agriculture estimated in March that 215 million bushels of corn were being stored on farms in the state.
EU wheat drops as French harvest makes good progress.
European wheat prices fell, pressured by good harvest results in France and as the euro rise against the dollar hampered the competitiveness of European wheat on world markets. Front month September on the Paris-based Euronext exchange was down 0.1 percent or 0.25 euro at 171.00 euros a tonne. It had surged during a heatwave in France last week, which raised concern of damage to crops.
USDA Crop Progress Report Shows Below Expectations on Wheat.
USDA showed crop conditions that were below expectations yet again. Spring wheat continued to see eroding scores hitting 40%, below expectations of 41% which was the reading last week.
India Spot wheat prices fall as traders cautious ahead of GST.
Wheat prices were down in key wholesale markets of the country due to subdued buying ahead of rollout of goods and services tax on Jul 1. In the key Delhi market, mill quality wheat sold down 20 rupees from the previous day and in Kota, the grain was sold down 10 rupees from previous close. The July contract ended down 0.4% from previous close.