Prices of mustard seed in Jaipur extended gains due to a fall in arrivals coupled with improved demand from stockists and oil millers. Subdued demand for mustard meal, however, capped gains in prices.
Rajkot Oilseeds complex.
Edible oil prices were mixed in the early trades. Groundnut oil prices were steady due to restricted buying and selling. Cottonseed oil firmed up due to short supply. Mustard oil eased due to low retail demand. Worries that extreme weather conditions in the US had taken a huge toll on crops also kept prices up.
CBOT soy up on short covering, crop damage worry.
Soybean futures on CBOT were higher as investors covered short positions after prices fell for three straight trading days. The most active November contract on CBOT was at $9.9675 per bushel, up 0.4% from the previous close.
Adani Wilmar took delivery of 15,000 tonne of soybean on NCDEX in Jun.
Adani Wilmar Ltd took delivery of 15,000 tonne soybean on the National Commodity and Derivatives Exchange under the June contract. At 4,140 tonne, Sunrise Broking Pvt Ltd made the highest delivery of soybean to the exchange. Olam Agro India Pvt Ltd took delivery of 4,690 tonne of the same-month contract of mustard seed, while the largest delivery of the oilseed was made by ITC Ltd at 6,330 tonne. Inditrade Business Consultants Ltd took delivery of 4,500 tonne castor seed, while Kashmeen Commodities Pvt Ltd delivered 2,980 tonne of the commodity.
Soybean down in Indore tracking overnight CBOT cues.
Soybean was down in Indore tracking overnight fall in prices on the CBOT. However, sharp fall in the prices was restricted due to lower arrivals of the oilseed amid heavy rains in Madhya Pradesh. Soybean August contract on the CBOT ended 16 cents down at $9.8150 per bushel because of favourable weather in the US Midwest. Futures contracts of soybean on the NCDEX were down 0.3%.
India Govt may consider sugar import, stock limits on mills if prices rise.
The government may consider more duty-free sugar imports and bringing back stock limits on sugar mills this season if prices continue to rise in the run-up to Diwali. The government is looking at the possibility of allowing duty-free imports barely weeks after it increased the import duty on sugar to 50% from 40%, as prices have started rising. Prices in both retail and wholesale markets are expected to rise again as sugar supplies are tight this season and demand is seen increasing ahead of the festival season. The government had last year made it mandatory for mills to offload sugar from their stocks during Sep-Oct to rein in prices. Mills were allowed to keep only 37% of their total stock at the end of September, and 24% by the end of October, forcing them to offload a higher quantum in the market.
Maharashtra extends sugar stock-limit cap until October.
Maharashtra has extended stock limit on sugar until October. The state government had imposed the stock limit on sugar in May 2016. The government continues to impose the stock limit on sugar due to concerns over supply shortage ahead of the festivals. Wholesalers and retailers in the state will not be allowed to hold more than 500 tonne and 50 tonne of sugar, respectively, for a period of one month after they receive the stocks. The government has also asked sugar mills to advance the crushing of the sugarcane to early- or mid-October to maintain adequate supply of sugar in the market.
Govt seeks Parliament nod to spend 294.6 million rupees on sugar sops.
The government has sought Parliament approval to spend 294.6 million rupees to clear pending claims of interest subvention under the Scheme for Extending Soft Loan to Sugar Mills, and to give production subsidy to mills. The approval for the additional amount was sought in the First Batch of Supplementary Demands for Grants tabled in Lok Sabha. Of the total amount, the government sought 63.6 million rupees to clear pending claims, and the remainder to provide production subsidy to sugar mills to offset the cost of cane and facilitate timely payment of sugarcane dues. The demand will not entail any cash outgo, as the funds will be provided from the sugar development fund.
NCDEX sugar hits lower circuit on spot market cues.
Futures contracts of sugar hit their 3% lower circuit, taking cues from the spot markets where prices fell due to low demand at higher prices. The most active December contract was down 3% from the previous close.
India sugar prices fall in north India, unchanged in Maharashtra.
Prices of sugar fell for the third straight day in the key wholesale markets of north India due to subdued demand at higher prices amid adequate stocks in the markets. Regular supplies have resumed in the markets now and prices have declined. Prices are subdued also because of reports of the government asking mills to curtail the prices.