The September contract of chana was down 1.6% on the NCDEX, tracking a fall in benchmark markets. Prices of chana were down in Delhi and Bikaner due to lacklustre demand from domestic stockists and dal millers after the recent rise in prices.
Food Corp to auction 4,341 tonne tur via NCDEX e-markets.
India Tur steady in spot markets as demand meets supply.
Maharashtra buys record high of 673,476 tonne tur, pays 33.4 billion.
The Maharashtra government has procured a record high of 673,475.6 tonne tur from Dec 15 to Jun 12, for 34.01 billion rupees. Of the total amount, 33.41 billion rupees have been paid to the farmers. Tur was procured from 354,417 farmers from 323 centres at a minimum support price of 5,050 rupees per 100 kg, including a bonus of 425 rupees. The state government has also proposed to the Centre that the import duty on tur be increased to 25% from 10%, in order to support the prices in the domestic market.
NAFED procures 4,359 tonne sunflower seed.
The National Agricultural Cooperative Marketing Federation of India procured 4,359 tonne of rabi sunflower seed as of Tuesday. The procurement drive, which began last month, is underway in the Ambala, Sahabad, Ladwa, and Pehowa districts of Haryana, under the price support scheme. About 2,453 farmers have sold their produce to the agency. The agency is procuring the oilseed from growers at the minimum support price of 3,950 rupees per 100 kg, including a bonus of 100 rupees, as market prices are below this level.
NCDEX mustard seed down on weak export demand for oil.
Futures contract of mustard seed was down on the NCDEX, due to sluggish demand for mustard oil from overseas buyers. On the NCDEX, the most-active August contract traded down 0.24% from previous close. A fall in stocks at the exchange warehouses, however, cushioned fall in prices.
NCDEX marks 4,240 tonne mustard for staggered delivery.
The NCDEX has marked 4,240 tonne mustard seed for staggered delivery in the July contract. The bourse has also marked 1,720 tonne of cottonseed oilcake, 840 tonne of castor seed, 550 tonne of soybean, 528 tonne of jeera, 430 tonne of guar gum, 420 tonne of coriander, 250 tonne of barley, 190 tonne of maize, 150 tonne of guar seed, 25 tonne of turmeric and 20 tonne of wheat for staggered delivery in the July contract.
India Soybean a tad down in line with CBOT; CPO gains.
Futures contracts of all constituents in the edible oil basket, barring crude palm oil, traded lower on domestic exchanges. Extending weakness from the previous session, contracts of soybean closed around 0.2% lower on the NCDEX tailing losses in key contracts on CBOT. Futures contracts of soybean on the US exchange traded 0.5% lower as traders covered their profits after prices were higher in past few sessions due to crop concerns. The most-active August soybean contract traded at $10.0625 a bushel on the CBOT, down 0.7% from the previous close.
NCDEX soybean down on profit booking post 4-month high.
Futures contracts of soybean on the NCDEX were down, as investors booked profits after prices hit a four-month high of 3,027 rupees per 100 kg in early trade. The most active August contract of soybean on the NCDEX was down 0.5% from the previous close. A 1,030-tonne decline in open interest at 69,500 tonne in the contract indicated profit booking.
China June sugar imports slump.
China sugar imports plunged in June, after Beijing imposed hefty tariffs on foreign arrivals in late May and slashed imports permits. China bought 140,000 tonnes of raw sugar in June, down 62 percent year on year, and down 25 percent from last month 186,765 tonnes. China has halved the permits for out-of-quota sugar import from last year to around 1 million tonnes. Beijing imposed extra tariffs on out-of-quota imports of the sweetener for the next three years in a ruling in May, following years of lobbying by domestic sugar farmers and crushers. Imports in the first half of this year went up 5.9 percent to 1.41 million tonnes, as lower global prices attracted buyers.
Pakistan need enhance sugar export quota to facilitate mills to pay farmers outstanding dues.
The decision was taken to allow the export under certain conditions to avoid the escalation of prices of sugar in the domestic market. The export of 0.3 million tonnes of sugar in addition to the quantities already allowed for export by the ECC. The Pakistan Sugar Mills Association (PSMA), in May 2017 had informed the government that the sugar industry had produced record quantity of sugar leading to a surplus of 1.475 million metric tonnes which was resulting in the delayed payment to the sugarcane growers. The mill owners are unable to pay the due amount because of the financial crunch faced by the industry and its poor liquidity position. There is a strong need to overview the sugar stock situation and accordingly enhance the export quota. This facilitate the mills to pay farmers outstanding dues and commence the 2017-18 crushing season on time.
Over half of India faces sugar crunch despite stock carryover, bumper crop
Deficient monsoon rain so far has threatened recovery in sugar production this season, the second year in a row, pushing sugar prices to a three-month high in the past few weeks. 14 states and Union Territories with a huge sugar consumption base are currently facing supply shortage due to low output last year. Despite growing consumption, a number of these states do not produce sugar at all. The government has asked Indian Sugar Mills Association (ISMA) to ensure that Mills do not increase prices as market prices were quoted at three-month highs.
India markets on a sugar rush, stocks rise 2-10%.
Shares of sugar companies were on a high, rallying between 2 per cent and 10 per cent on Thursday after sugar prices on the National Commodity and Derivatives Exchange (NCDEX) got locked in an upper circuit. Centre looks to fix sugar problem in Uttar Pradesh, orders Yogi government to implement Rangarajan formula. After fulminating against errant sugar mills for not paying farmers their dues, the UP government may finally address the real problem of forcing sugar mills to pay too much money to sugarcane farmers. All states, and UP is the guiltiest, fixed a State Administered Price (SAP) that was higher than the FRP, and that was the genesis of increasing farmer arrears. While the UPA had come out with the Rangarajan formula on revenue-sharing between the mills and farmers, states like Maharashtra and Karnataka accepted this, but UP did not. As FE pointed out, over the past five years, UP’s sugarmills paid around Rs 19,000 crore extra to the farmers as compared to a situation where the Rangarajan formula had been adopted. In the season beginning October 2017, the FRP is Rs 255 and the SAP Rs 305—given the current recovery levels of 10.61%, the gap is a much lower Rs 20 per quintal. So, if Yogi Adityanath is able to make the transition quickly, farmers will adapt to the new model—if the sugar cycle changes, as it does from time to time, the sugar mills will not be forced to pay out extra and this will not, once again, lead to the old arrears-agitation-crackdown cycles.
Sugar prices down in Delhi, flat in Maharashtra.
Prices of sugar fell in the key wholesale market of Delhi as demand faded at higher price levels as as supply was disrupted by religious processions on some routes connecting western Uttar Pradesh to the national capital. Medium-grade sugar was sold in Delhi, down 60 rupees from previous close. Prices of sugar in the key spot market of Mumbai, however, were stable at amid thin trade.