Russia wheat update.
Govt sets aside 15% of 60-bln rupee Sampada plan for grain mills.
Govt sets aside 15% of 60-bln rupee Sampada plan for grain mills.
Indian govt Jul 1 wheat stock at 32.3 mln tn, 2 mln tn above buffer norm.
Indian govt Jul 1 wheat stock at 32.3 mln tn, 2 mln tn above buffer norm.
CBOT soybean down on profit booking by investors.
After hitting a four-month high of $10.3250 per bushel in electronic trade on the CBOT, soybean contracts were down because of profit booking by investors. The most active August contract on the CBOT was at $10.2275 per bushel, down 0.6% from previouse close. Unexpected overnight rains across parts of mid-west US as well as over the Great Plains, coupled with forecast of more showers in the coming week led investors to book profits.
USDA estimates 2017-18 Brazil soybean output at 105 million tonne, down 8%.
The US Department of Agriculture Brasilia post has estimated Brazil soybean output at 105 million tonne in 2017-18 (Mar-Feb), down around 8% from 114 million tonne last year. The fall in the soybean production despite record area under the crop is primarily due to poor yields in 2017-18. Sowing of soybean in 2017-18 is seen at a record 34.4 million ha and it is over 1% higher than last year level in the country. The post forecasts soybean exports for 2017-18 at 62 million tonne, down about 3% compared to the previous year due to lower exportable supplies of the oilseed because of weak output and higher domestic consumption.
Jaipur mustard seed up on improved domestic demand.
Prices of mustard seed in Jaipur, the benchmark market for the commodity, rose for the third consecutive day due to higher demand from domestic oil millers and stockists. In Jaipur, the oilseed was sold up 10 rupees from previous close. Lower arrivals also supported prices of the oilseed. Supplies have declined because farmers are holding on to their produce, as they expect prices to rise in the coming days.
MP will procure soybean on MSP.
In a move to quell simmering anger among farmers after last month violent protest, Madhya Pradesh chief minister Shivraj Singh Chouhan announced plans to procure soybean from farmers at minimum support price ( MSP ). Govt have been procuring moong (green gram), urad (black gram) and arhar (pigeon pea) from farmers at MSP. Instead attempts should be made to ensure that the farmers get proper price for their produce. The state government move to procure soybean at MSP is an attempt to reach out to large number of farmers in Malwa region, the hub of soybean cultivation in the country.
Rajasthan 2016-17 mustard crop seen up 21% on year.
The agriculture department in Rajasthan has estimated mustard output in 2016-17 (Jul-Jun) to rise by 21% on year to 3.94 million tonne because of higher yields. According to the fourth advance estimate, output of guar in Rajasthan, the largest producer of the crop, may fall 37% on year to 1.4 million tonne in 2016-17.
Indore soybean prices up 20 rupees on slow progress of sowing.
The rise in prices was also because of lower arrivals, as the ongoing period is a lean season for soybean arrivals.
India kharif soybean area seen down 10% as farmers shift to cotton.
India soybean acreage is likely to fall by around 10% in the ongoing kharif season as farmers may have switched to more profitable crops due to poor realisation from the oilseed, and on weather vagaries. Around 8-10% shift in sowing of soybean is expected this year. Farmers are not much interested in growing soybean and they are shifting mostly to cotton. For the 2017-18 (Jul-Jun), the minimum support price for medium staple cotton is 4,020 rupees per 100 kg and for long staple cotton at 4,320 rupees, both up 160 rupees on year, while that for soybean is 3,050 rupees.
Chana prices down in Delhi on higher supplies.
Prices of chana were down in Delhi because of increase in supplies amid sluggish buying from the dal millers. Chana was quoted lower in the key markets despite reports of re-launch of the pulse on the NCDEX. Although arrivals are unchanged, they have been higher over the last three-four days compared to beginning of the month, which is seen creating bearish sentiment.
NCDEX to relaunch chana trade Fri, shifts delivery centre to Bikaner.
The National Commodity and Derivatives Exchange is set to relaunch futures trade in chana on Friday, after the Securities and Exchange Board of India gave its approval in this regard. According to the new contract, Bikaner in Rajasthan would be the main delivery centre, as opposed to Delhi in the previous contract.
Gulbarga tur down on low buys, weakness across pulses.
Prices of tur fell in Gulbarga, Karnataka, due to weak demand. Weakness across the pulses band, especially chana, also weighed on the prices.
Govt OKs fumigation of pulses from Canada, France, US at India ports.
The government has exempted pulses imported from Canada, France, and the US from mandatory fumigation at port of origin. These countries have been allowed to fumigate pulses cargoes at Indian ports by paying only the fumigation fee. The relaxations have been granted to these countries in view of India bilateral relations with them. The exemption paves the way for continued pulses imports from these countries. For all other commodities, imported from other countries, the importers have to pay a high penalty in case fumigation is not done at the port of origin. The penalty is five times the inspection fee for the first default, seven times the inspection fee on second default and 10 times the fee on the third instance of default, or not meeting any conditions laid down under the plant quarantine norms. For subsequent defaults, the penalty increases exponentially. Traders have also been seeking a reduction in the inspection fee charged by the phytosanitary authority, as their cost on imports has increased by $2-3 a tonne due to the fee hike.
Global sugar prices still to bottom out as Brazil adds to glut.
Prices of raw sugar globally are in a free fall for the last three-four months and a further downside is expected by next month. Prices of raw sugar on Intercontinental Exchange fell to a 16-month low of 12.53 cents per pound in the last week of June. Though prices rebounded to 14-cents-per-pound mark earlier this week, the gains were short-lived. In the main centre-south growing region (of Brazil), the proportion of sugarcane that is turned into sugar is set to increase to 48%, following a figure of 46.3% in the last crop year. Prices of the sweetener may slip further mainly due to expectation of bumper global production in the next season.
India Sugar prices down in key spot markets on low demand.
Prices of sugar fell in the key spot markets as mills lowered their prices to stir demand, owing to fading purchases at higher prices. Stockists have also replenished their stocks in the beginning of the month. Likely higher output in 2017-18 sugar season (Oct-Sep), backed by good monsoon rains has also weighed on the sentiments of sugar. In Delhi, sugar was down 10 rupees from previous close, while in Mumbai, the commodity was sold down 5 rupees. India sugar production is likely to rise 16-20% to around 23.5-24.5 million tonne in 2017-18 (Oct-Sep).
ISMA pegs 2017-18 sugar output at 25.1 million tonne, up 23.6% on year.
The Indian Sugar Mills Association has pegged the country sugar output in 2017-18 (Oct-Sep) at 25.1 million tonne, up 23.6% from 20.3 million tonne produced in the previous year. Uttar Pradesh, Maharashtra and Karnataka the three top sugar producing states are expected to produce over 19.8 million tonne of total sugar output during next season.
WASDE OUTLOOK SUGAR JULY:
U.S. deliveries for human consumption for 2016/17 are increased by 100,000 short tons, raw value (STRV) to 12.300 million based on pace-to-date through the end of May. Florida sugar production for 2016/17 is increased by 3,795 STRV to 2.055 million based on end-ofseason processor reporting to the USDA. Ending stocks are decreased by the sum of these adjustments to 1.440 million STRV, implying a stocks-to-use ratio of 11.4 percent. Imports for 2017/18 are increased by 225,445 STRV to 3.557 million. The increase is comprised of 176,370 STRV of additional specialty sugar that enters under the 2017/18 refined sugar tariffrate quota and an additional 49,075 STRV from Mexico. Deliveries for human consumption are projected to increase one-percent over the estimate for 2016/17 to 12.423 million STRV. Ending stocks for 2017/18 are projected at 1.132 million STRV, implying a stocks-to-use ratio of 9.0 percent. Mexico 2016/17 sugar imports intended for the IMMEX product re-export program are increased by 10,000 metric tons (MT) to 60,000 based on the pace to date. Sugar exports for 2016/17 to non-U.S. destinations are increased by 15,000 MT to 165,000 based on the pace to date. Exports to non-U.S. destinations for 2017/18 are decreased 15,000 MT to 10,000 based on expected higher-valued export alternatives to the U.S. market. Deliveries for the IMMEX program for 2017/18 are reduced 60,000 MT to 330,000. For 2017/18, exports to the United States are projected at 1.561 million MT. These exports are projected as the lower of the following: (1) anticipated U.S. Needs of 2.048 million MT as defined in the Suspension Agreements; or (2) the export level that yields an ending stocks-to-consumption ratio of 18.0 percent. The 18-percent stocks-to-consumption ratio is an assumed lower bound necessary for use until the new Mexico sugarcane harvest is well underway.
WASDE OUTLOOK OILSEEDS JULY:
U.S. oilseed production for 2017/18 is projected at 127.0 million tons, up 0.2 million from last month, with increases for soybeans, canola, and peanuts only partly offset with a lower forecast for sunflowerseed and cottonseed. Soybean production is projected at 4,260 million bushels, up 5 million on increased harvested area. Harvested area, estimated at 88.7 million acres in the June 30 Acreage report, is up 0.1 million from last month. The soybean yield forecast is unchanged at 48.0 bushels per acre. Despite slightly higher production, 2017/18 soybean supplies are reduced 35 million bushels on lower beginning stocks. With projections for exports and crush unchanged, 2017/18 soybean ending stocks are reduced 35 million bushels to 465 million. Soybean exports for 2016/17 are projected at 2,100 million bushels, up 50 million, reflecting shipments and outstanding sales through early July. Soybean crush is reduced 10 million bushels to 1,900 million on lower projected soybean meal exports and domestic use. Soybean ending stocks for 2016/17 are projected at 410 million bushels, down 40 million from last month. The U.S. season-average soybean price is forecast at $8.40 to $10.40 per bushel, up $0.10 at the midpoint. Soybean meal prices are forecast at $300 to $340 per short ton, up $5.00 at the midpoint. The soybean oil price forecast is unchanged at 30 to 34 cents per pound. The 2017/18 global oilseed supply and demand forecasts include higher production, exports, and stocks compared to last month. Global oilseed production for 2017/18 is projected at 573.9 million tons, up 0.9 million mostly on higher forecasts for Ukraine sunflowerseed, India cottonseed, U.S. peanuts, and China soybeans. Partly offsetting is lower rapeseed production for Australia. Ukraine sunflowerseed harvested area is raised in line with revisions for 2016/17, resulting in a higher production forecast. Soybean production is raised for China due to increased harvested area. Global oilseed exports for 2017/18 are projected at 172.9 million tons, up 0.6 million mainly reflecting increased soybean exports for Brazil and Ukraine. Soybean exports are also raised for 2016/17 as higher exports for the United States and Paraguay are partly offset by lower exports for Brazil and Argentina. Global soybean imports are forecast higher principally for China where imports are projected up 2 million tons to 91 million in 2016/17 and 1 million tons to 94 million in 2017/18. Global oilseed ending stocks for 2017/18 are up 1.0 million tons to 104.5 million mostly on higher soybean stocks in China and South America.