Global palm oil prices are likely to find short-term support at 2,600 ringgits per tonne, up 8% from August estimates, by Oct-Dec on the Malaysian bourse. Palm oil price forecast is revised higher due to price run up in third quarter. However, the financial services company estimates a bearish view for 2018. The rise in the inventory in Malaysia and Indonesia in the coming months is likely to keep prices weak. Inventory of palm oil in Malaysia in August rose by 8.9% on month to 1.94 million tonne, the highest levels since March 2016. Lower imports from India and China in the coming months are also likely to keep sentiment bearish. However, the view for soybean and its derivatives is unchanged for Oct-Dec. The bank estimates average soyoil contracts on the Cbot to trade at 33.5 cents per pound and soybean contracts to trade at $9.50 per bushel during Oct-Dec.
ICAR aims to raise oilseed output by 40% to 45mn ton by 2022.
ICAR aims to increase oilseeds production by 40 per cent in the next five years to 45 million tonnes by bringing more area under cultivation and raising crop yield. The increase in oilseeds output would help the country in cutting down import of vegetable oils to less than 50 per cent from the current 70 per cent. India produced 32.1 million tonnes of oilseeds in the 2016–17 crop year (July–June) from 26.21 million hectares at a productivity of 1,225 kg per hectare. The country imported about 14.5 million tonnes of vegetable oils in 2016–17. The institute has identified 17.5 million hectares of fallow land in various states and out of that it wants at least 3.5 million hectares to be brought under oilseeds crop. The ICAR institute has pegged the total vegetable oil requirement at 33.20 million tonnes by 2022 and estimated that 17.03 million tonnes would be available from domestic market and over 16 million tonnes would be imported.
India NCDEX mustard up 1% on export demand for meal.
Futures contracts of mustard on the National Commodity and Derivatives Exchange rose nearly 1% due to a rise in demand for mustard meal from overseas buyers. The most active October contract of mustard ended up 0.9% from the previous close. Improved demand from domestic oil millers and crushers also supported mustard seed prices.
Former farm minister Pawar sees sugar use rising to 30 million tonne by 2020.
The domestic demand for sugar may rise to about 30 million tonne by 2020, up from an estimated consumption of 24.5 million tonne this year. In order to meet the demand of 30 million tonne, the country should record a growth of 3.75% per year in the production of the sweetener.
Sugar price up in Mumbai on high demand, down in Delhi.
Prices of sugar rose in the key wholesale markets of Mumbai due to an increase in demand as Maharashtra markets opened after a three-day holiday. Prices of the sweetener, however, fell in the key wholesale markets of Delhi as demand was hit due to police blockades set up in Punjab and Haryana to quell unrest ahead of the announcement of the sentence against self-styled godman Gurmeet Ram Rahim.
Tur up in Kalaburagi on mills demand; flat in Akola.
Prices of tur in Kalaburagi were up because of a rise in demand from millers. Acreage of tur across the country is down 19% on year at 4.2 million ha. This is also seen supporting the upside in tur prices. The country harvested 9.33 million tonne Chana in the last crop year ended June, up sharply from 7.06 million in the previous year. Traders, however, believe that the government’s data on chana production was inflated, and the crop may have been much smaller, as stocks are low.
Govt source says no plan to cap imports of Chana, Masoor as of now.
The government, which recently imposed quantitative limits on imports of tur, moong and urad, has no plans as of now to restrict imports of chana and masur. Prices of chana and masur are increasing in the domestic markets, and restrictions on imports may push up the prices further.
Increased supply hits mustard seed prices in Jaipur.
Prices of mustard seed were down in Jaipur due to a rise in arrivals coupled with sluggish demand from oil millers and crushers. Demand was subdued after a recent surge in prices.
Mills see Karnataka sugar output up at 2.4 million tonne in year to Sep 2018.
Karnataka, where sugar output fell to an eight-year low of 2.05 million tonne this marketing year, have to wait long to return to its normal production level of about 5 million tonne. While production of sugar is seen rising in the southern state in 2017-18 (Oct-Sep), the rise would be marginal. Sugar output in the state during 2017-18 is seen rising to around 2.4 million tonne helped by “good” monsoon rains this year following two successive years of drought.