Sugar stocks up on hope of duty hike.

Sugar stocks rose by up to 20 per cent on expectation of an increase in customs duty to curb cheaper imports and estimates of lesser production than previous projections. The share price of Shree Renuka Sugars jumped the highest, to close at ~15.66. Bajaj Hindusthan and Simbhaoli Sugars surged by 9.3 per cent and 7.3 per cent, to close at ~16.36 and ~31.45, respectively. Also, monsoon rain has been sporadic in major cane growing areas, prompting analysts to forecast less output than previous estimates.

India likely to increase sugar import tax to 50%.

India is likely to raise import duty on the sweetener to 50 percent from 40 percent in an attempt to restrict the cheaper flow of the commodity from overseas. The government in April allowed the duty-free import of 500,000 tonnes of sugar by the end of June to keep a lid on prices after local production fell by a fifth from a year ago. However, in 2017/18 marketing year starting from October 1, India sugar output is expected to jump a quarter from the previous year to 25 million tonnes. There have been some apprehensions of cheaper imports flooding the Indian market. That’s why the government is likely to raise the duty to 50 percent.

India June mustard crushing 550,000 tonne, down 23% on month.

Oil mills in the country crushed 550,000 tonne mustard seed in June, 23% lower from the previous month. Mills had crushed about 712,500 tonne the oilseed in May. Oil mills have crushed about 2.9 million tonne mustard since the start of the crushing season since Feb 15, as against total arrivals of 3.4 million tonne during the period.

CBOT soybean futures erase all losses, up 0.3%.

Futures contracts of soybean on the CBOT traded higher due to concerns over poor growth of the sown crop amid dry weather in the US. The most active August contract on the CBOT traded at $9.89 per bushel, up 0.3% from the previous close. Futures of the oilseed had declined in the electronic trade because of profit booking by investors, after prices hit a three-month high, and due to a firm dollar against the euro.

Moong down in Jaipur on subdued demand from millers.

Prices of moong were down in the benchmark market of Jaipur because of sluggish demand from dal millers. In Jaipur, moong was sold down 100 rupees from previous close. Higher acreage under the pulse so far is also seen creating bearish sentiment.

Glencore India denies allegation of pulses cartelisation.

Glencore Agriculture India Pvt Ltd has said it was not involved in any cartelisation by pulses traders in 2015-16, when prices of some pulses had hit record highs. An investigation by the income tax department indicated the spike in prices of pulses was because of cartelisation by traders.The company said the rise in prices was largely seen in tur and urad, and these commodities were not the core items imported by the company, adding that the company imported negligible quantity of tur and urad. Glencore is one of India largest importers of pulses. The report named companies like Glencore Group, ETG Group, Edelweiss Group, and Jindal Group for influencing overseas markets, hoarding local stock and evading taxes. Prices of most pulses, particularly tur and urad, had hit record highs in 2015. Tur prices in 2015 hit a record high of 15,300 rupees per 100 kg while those of urad had risen to 12,000 rupees.

India kharif pulses sowing progress.

India kharif pulses sowing 4.41 million ha (up 22.92%) vs 3.59 million as on 7 july. India kharif tur sowing 1.43 million ha (down 5.65%) vs 1.51 million ha. India kharif urad sowing 1.01 million ha (up 36.81%) vs 0.74 million ha. India kharif moong sowing 1.25 million ha (up 23.96%) vs 1.08 million ha.