The September contract of chana on the NCDEX hit a one-week high due to an increase in demand from dal millers and stockists, coupled with a fall in arrivals at key markets. On the NCDEX, the most active September contract of chana traded up 2.5% from previous close. In Delhi, the benchmark market for the pulse, chana was quoted up 50 rupees from previouse close.
Army ration wing to auction 2,929 tonne of pulses.
The Army Purchase Organization has offered 2,929 tonne of pulses, including dried green peas, rajmah (kidney beans), lobia (black-eyed peas) and chickpea, for auction through NCDEX e-Markets.
Soybean prices in Indore fall as arrivals rise.
Prices of soybean in the key wholesale market of Indore fell due to rise in arrivals. Arrivals across Madhya Pradesh rose. Higher supplies also weighed on the futures of the oilseed on the NCDEX with the August soybean contract trading down 0.5% from the previous close.
India address sugar price, availability issues.
Tightening sugar market fundamentals and rising prices have generated renewed concerns within government circles over the risk of a further spike in the price of the essential food commodity during the upcoming festival season. This may have a bearing on credit policy in the context of inflation expectations. Worse, in a tightly balanced market, even a small change in either demand or supply or both, will exert a disproportionately larger impact on prices; and admittedly the domestic sugar market is tightly balanced this year. According to the government, consumption demand for sugar was 256 lakh tonnes in 2014-15, which declined to 248 lakh tonnes in 2015-16. In the event of a normal South-West monsoon and a decent Kharif harvest in September, rural incomes may rise and result in additional demand for all essential food commodities, including sugar. It would be expedient to plan for 2017-18 and address the immediate issue of sugar availability and prices in the next three months. Indeed, it would be commercially prudent and politically expedient to permit import of an additional 10 lakh tonnes, which can help contain the risk of a price spurt, augment supplies across the country and help have a modest carry-over into the new season. Administrative measures such as storage limits have only a limited impact. Laws of economics will eventually prevail.
India sugar up in Maharashtra on festival demand; down in north India.
Spot prices of sugar rose in the key wholesale markets of Maharashtra due to higher demand. The expectations of a bullish trend are supporting prices in Maharashtra right now due to supply concerns. The carry forward stock is likely to be lower. Prices of the sweetener in north India, however, were down as demand fell at higher price levels. Prices rose yesterday amid festival demand. Now, there is no buying support at higher level. Overall, traders have a bearish outlook on sugar prices for the coming days. The government may consider more duty-free sugar imports and re-impose stock limits on sugar mills as well if prices continue to rise.