Mustard seed prices in Jaipur hit a one-month high up 30 rupees from previous close, on a fall in arrivals and due to improved demand from domestic oil millers and crushers. Seasonal demand for mustard oil has lifted seed prices. Supplies are lower as farmers are not ready to sell much of their produce at existing rates, as they expect prices to rise in the coming days.
CBOT soybean down on favourable US weather.
Futures contracts of soybean fell on CBOT due to the recent favourable rains in key growing areas in the US, the world largest grower. Rains help in growth of the plant and may boost the yield of the crop. Forecast of favourable weather in the coming days also weighed on sentiment. The most-active August contract in electronic trade on CBOT traded at $9.8300 per bushel, down 0.6% from the previous close.
Orissa government lifted stockholding limits on pulses.
The Orissa government has lifted stockholding limits on pulses, edible oilseeds and edible oils in view of the adequate supply and drop in prices. The stockholding limits on pulses have been lifted with immediate effect, as there is no shortage of pulses in the country and prices have fallen. Prior to the new order, a wholesaler was allowed to store upto 2,000 quintal of pulses, 1,000 quintal of edible oil seeds and 500 quintals of edible oils. Similarly, retailers were allowed to stock up to 50 quintal each of pulses and edible oil seeds and 20 quintals of oils.
Government buying of pulses falls 86% short of target.
After a big success during the earlier kharif season, government agencies have failed in pulses procurement in the ongoing rabi marketing season, missing their target by 86 per cent. Nafed procured only 19,779 tonnes of masur (red gram) as on July 3, against the target of 100,000 tonnes. And, 51,059 tonnes of chana (Bengal gram), against the procurement target of 400,000 tonnes. Respectively, 19.8 per cent and 12.8 per cent of the rabi marketing target. The government has set a buffer limit of two million tonnes for both kharif and rabi seasons, which is almost achieved. So, the ministry initially set the procurement target of 500,000 tonnes, later reduced to 400,000 tonnes. Price is a factor which prompted farmers to hold on to their produce.
NAFED procures 53,000 tonne of 2016-17 chana, 25,000 tonne of masur so far.
The National Agricultural Cooperative Marketing Federation has so far procured 53,000 tonne chana and 25,000 tonne masur grown in 2016-17 (Jul-Jun) rabi season in key growing areas of the country. In Madhya Pradesh, NAFED has bought around 18,000 tonne masur from Madhya Pradesh and the rest from Uttar Pradesh. Around 41,600 tonne of chana has been procured in Rajasthan, about 10,800 tonne in Madhya Pradesh, 947 tonne in Uttar Pradesh, and the rest in Haryana. The agency has also bought around 150,000 tonne of summer grown moong, mostly from Madhya Pradesh.
NCDEX chana hits 4% lower limit as arrivals double.
Chana future contracts on the NCDEX hit the 4% lower limit as arrivals of the commodity in the local market doubled while demand from dal millers was low. Expectations of demand ahead of festivals are likely to restrict sharp fall in the pulse prices.
EU 2017-18 sugar output seen up 20% at 20.1 million tonne.
European Commission has forecast output of white sugar in the European Union at 20.1 million tonne for 2017-18, up 20% on year. While sugar imports are expected to halve to 1.5 million tonne due to a likely drop in prices of white sugar, European Commission sees sugar exports from the European bloc doubling to 2.8 million tonne in 2017-18.
Govt asks Uttar Pradesh to change sugarcane pricing policy.
The consumer affairs ministry has asked Uttar Pradesh government to change the pricing policy of sugarcane and implement the revenue-sharing model. Under the revenue-sharing formula, the total revenue generated from the cane-sugar value chain is shared between farmers and millers in the ratio of their relative costs in producing cane at the farm level and converting it into sugar and its by-products at the factory level. There is no link between cane and sugar prices under the current pricing policy followed by the state. For 2016-17 (Oct-Sep), price of cane in Uttar Pradesh, higher than fair and remunerative price, was raised by 25 rupees per 100 kg to 305 rupees. For 2017-18, government raised fair and remunerative price of cane to 255 rupees per 100 kg, linked to a basic recovery rate of 9.5%. For each 0.1% increase in recovery rate over and above 9.5%, the fair and remunerative price would be increased by 2.68 rupees per 100 kg. The fair and remunerative price of cane is the minimum price that sugarcane farmers across the country are guaranteed. It is fixed by the Centre, on the recommendations of the Commission for Agricultural Costs and Prices.
India sugar prices up in key spot markets, down over 1% on NCDEX.
Prices of sugar rose in the key wholesale markets of north India as supplies were disrupted due to religious processions on some routes connecting western Uttar Pradesh to the national capital. Sugar prices also inched up in the key spot markets of Maharashtra as millers quoted higher prices. On the National Commodity and Derivatives Exchange, however, sugar futures were in the red due to expectations of higher sugar output in 2017-18 (Oct-Sep).