Subdued EU wheat market weighs slow farmer sales, big Russia crop.
Jr farm minister says maintaining 2016-17 pulses output a challenge.
Maintaining the record pulses output of 2016-17 (Jul-Jun) this year would be a challenge as some farmers have shifted to other crops looking for better realisations. Last year we harvested record pulses and reached close to self-sufficiency. This year it seems a challenge. Indian farmers harvested 22.95 million tonne of pulses in 2016-17, up from 16.35 million tonne previous year, according to the fourth advance estimates of farm ministry. National Bulk Handling Corp Pvt Ltd has estimated India’s kharif pulses output for 2017-18 at 8.5 million tonne, less than 9.4 million tonne harvested a year ago. India’s pulses output seen falling this year as the bumper crop last year weighed on prices, discouraging farmers from sowing pulses.
Bikaner, Delhi chana down on lower buys by dal millers.
Chana prices were down in key markets of Delhi and Bikaner because of lower demand from dal millers. Futures contracts were also weak with most-active October contract down 1.7%.
MMTC invites bids for sale of 7,090 tonne masoor, 2,010 tonne tur.
MMTC Ltd has floated a tender to sell 7,090 tonne imported masoor lying at the Mumbai Port Trust shed. MMTC has also floated tender to sell 2,010 tonne imported tur and 1,965 tonne imported urad. The urad and tur are lying at the Central Warehousing Corp, Vashi and Maharashtra State Warehousing Corp, Panvel. Bids must be submitted on Sep 12. The bids remain valid for acceptance till Sep 14.
Lemon tur down in Mumbai; Akola, Kalaburagi markets shut.
Prices of Lemon tur in Mumbai fell because of lower demand from dal millers. The benchmark market of Akola in Maharashtra, as well as other key markets such as Kalaburagi in Karnataka were shut on account of Anant Chaturdashi.
Malaysia CPO down on increase in output concerns.
Futures contracts of crude palm oil on Bursa Malaysia Derivatives were down as traders were cautious over the increase in production in the coming months. The most active November futures contract traded at 2,761 ringgits (41,704rupees) per tonne, down 6 ringgits from the previous close. An appreciation in the Malaysian currency against the dollar further supported the fall in prices. Strength in the ringgit against the greenback makes palm oil unattractive for Malaysian exporters.
Canada frost damage to soybeans.
Frost damage to soybeans depends on the stage of the soybeans and how cold it gets and for how long. Frost is possible two days Wednesday morning in parts of Manitoba. Soybean growth stage is determined by examining the pods. It is all about the pods, so don’t get distracted by the condition of the leaves. The more advanced/mature the soybeans pods are, the less the potential yield loss.
Canada Canola flat as soybeans rise on dry Midwest weather.
Canola futures were little changed even as soybeans surged higher. The seven days forecast for the Canadian Prairies remains dry and the cool weather should give way to warmer temperatures and the rest of the week. Soybeans rose on dry weather in the U.S. Midwest that could prevent the crop from reaching its full potential. Also, a new soybean purchase by China underlined the good pace of export demand for American beans. Soymeal closed higher, but soy oil finished lower after being higher in the morning.
Palmolein oil up on uptick in demand from retailers in Delhi.
Palmolein oil prices firmed up by Rs 50 per quintal at the wholesale oils and oilseeds market backed up by pick up in demand from retailers. However, other edible oils held steady in thin trade. Castor oil in the non-edible section, also recovered on increased offtake by consuming industries. Traders attributed the rise in palmolein oil prices to upsurge in demand from retailers. Rajkot groundnut oil prices moved down due to supply pressure.
Jaipur mustard seed extends gain on limited supply.
Prices of mustard seed rose in Jaipur for the second straight day due to limited supply in the markets and improved demand from domestic oil millers and crushers. Export demand for mustard meal also supported prices.
India Soybean, mustard end down; CPO up on global cues.
Futures contracts of edible oils traded mixed, with soybean and mustard closing lower and crude palm oil and refined soyoil trading higher. Soybean settled 0.4% down on the National Commodity and Derivatives Exchange due to hope of a recovery in yields in key growing areas, following recent rains. Prices had risen earlier as an extended dry spell over most parts of the country in August had affected crops in major soybean growing areas. On the US exchange, soybean rose due to expectations of higher demand for soyoil in the US amid a hike in import duty on biodiesel from Argentina and Indonesia. Taking cues from soybean, mustard ended around 1% lower on the NCDEX due to tepid buying by oil millers. The most-active November contract of crude palm oil ended at 2,768 ringgits (41,667.84 rupees) per tonne, up 2.3% from the previous close.
India Sugar fear of imports pulls down prices in spot market, NCDEX.
Prices of sugar fell in the key wholesale markets of Delhi and Muzaffarnagar due to fear of government allowing import of raw sugar to tide over any shortages. Sugar prices remained unavailable in Maharashtra because markets were shut for Ganpati Visarjan. The government is likely to allow import of 300,000 tonne of raw sugar at 25-30% import duty.
Sugar stocks surge government is likely to allow import 3 lakh tonnes raw sugar at 25-30% duty.
The government is likely to allow import of 300,000 tonnes of raw sugar at 25-30 per cent import duty. A notification on the matter is likely by Wednesday. Currently, sugar attracts an import duty of 50 per cent, making imports commercially unviable. The government is likely to soon take a decision on import of sugar to augment domestic supplies, as stocks are expected to fall to critically low levels. The imports then were also subject to zonal quantity restrictions. The government had allowed import of 300,000 tonnes duty-free raw sugar in the south zone via Tuticorin, Chennai, Mangaluru, and Kakinada ports, 150,000 tonnes in the west zone via Kandla and Mumbai ports and 50,000 tonnes in the east zone through Haldia and Paradeep ports. The government had later added Visakhapatnam and Gang avaram ports in Andhra Pradesh and Karaikal port in Puducherry to the list of ports where imports were allowed.
STC imports 25k tonne of sugar for festivals.
State-owned Salt Trading Corporation (STC) has imported 25,000 tonnes of sugar from India in a bid to regulate market prices and ensure smooth supply during the upcoming festive season. The shipment amounts to half of the 50,000 tonnes of sugar that STC plans to import by November. The remaining amount will be imported in 10 consignments of 2,500 tonnes each. STC started importing sugar in a bid to end the private sector’s monopoly and make it available at reasonable prices and maintain adequate stocks to forestall possible shortages as output has dropped in both India and Nepal this year.
Stocks of Tamil Nadu sugar firms bite the dust as dry spell continues.
Stocks of sugar companies in Tamil Nadu are taking a beating on the exchanges — they are close to hitting 52-week lows in the backdrop of an all-time poor performance anticipated in the coming season. Stock prices sliding as the 2016-17 sugar season comes to a close this month. Following an extended dry spell in Tamil Nadu, production has been steadily dropping in recent years and the coming 2017-18 (October to September) season could mark a historic low with capacity utilisation in the vicinity of about 25 per cent, on installed capacity. From a sugar production of 23.79 lakh tonnes in 2011-12, Tamil Nadu’s output has dropped to 10.45 lakh tonnes in 2016-17 and is estimated to hit a low of about 5.7 lakh tonnes in the coming season. This is just about four months’ consumption for the State. Mills elsewhere in UP, Maharashtra and Karnataka are set to benefit from the unfolding scenario.
Government in festival mode, wants sugar prices to stay low.
When it comes to sugar, the government does not want to take any chances. The food minister tweeted that the government decide on sugar imports soon. That’s a signal for more supply and could be a negative sign for prices.
Record sugar output 9.7 million tonne in UP likely in 2017-18: ICRA
ICRA estimated the state’s sugar production to stand at 9.7 million tonnes (mt) in the upcoming season this year. Meanwhile, data compiled by the All India Sugar Trade Association pegged the state’s sugar output at 8.7 mt during 2016-17. This indicates mills in UP would produce 11.5 per cent more sugar in the coming season or nearly four times the state’s own consumption. Domestic production for the full season during 2018 is likely to increase by 18-20 per cent to 24-24.5 mt, driven principally by a recovery in cane availability in Maharashtra and North Karnataka, besides support from monsoons.
ISMA says mills plan early crushing, to produce 800,000 tonne sugar October.
Sugar mills across the country are likely to produce over 800,000 tonne sugar in October. Usually, sugar mills produce about 300,000 tonne or less sugar in October. The Centre has asked millers across the country to begin cane crushing operations for the 2017-18 (Oct-Sep) season early in October, in a bid to tide over likely shortages during the festival season. ISMA has estimated mills in Uttar Pradesh produce about 293,000 tonne sugar and those in Maharashtra about 391,000 tonne of the sweetener in October. Sugar output in October is projected at 6,000 tonne for Tamil Nadu, at 91,000 tonne for Karnataka and at 22,000 tonne for Gujarat. Crushing at almost all sugar mills across the country would be in full swing by Nov 1. Therefore, we can expect to get another 16-17 lac tons (1.6-1.7 million tonne) sugar in the first 15 days of November.