On the back of higher sugarcane acreage this year and record sugarcane payments during 2016-17 crushing season, Uttar Pradesh government has projected sugar production of almost 10 MT in the coming season. This would be almost 15 percent higher compared to sugar production of about 8.75 MT during 2016-17 and total sugarcane payables of Rs 25,386 crore last year. During 2017-18 season, we are confident UP sugar output would touch the record level of a crore tonnes (10 MT).
Weak rupee against dollar makes imports unviable for India sugar mills.
The import of raw sugar at 25% duty has become unviable for millers due to the recent weakness of rupee against the US dollar. The government had, on Sep 8, allowed sugar mills and refineries to import 0.3 MMT raw sugar under tariff rate quota at a concessional duty of 25% for a period of 60 days in a bid to tide over any shortages in the run-up to Diwali. Importing sugar was viable when the government had issued a notification allowing imports.
End of EU sugar quota signals dip in consumer prices.
Consumer prices of sugar are projected to reduce substantially on increased supplies in the global market after the European Union (EU) formally scrapped quotas on the production and sale of the commodity after nearly 50 years. The end of the quotas means that there are no further limits to production or exports, allowing production to adjust to market demand both within and outside the EU. Producers will now have the opportunity to expand their trade on global markets,” Phil Hogan, EU Commissioner for Agriculture and Rural Development, said in a statement following the close of production quotas on September 30. European Commission showed the end of the system will trigger a jump in sugar production. It said that between 2016 and 2026 the bloc’s sugar production will increase by six per cent while production of an alternative sweetener, Isoglucose, could triple from 700,000 tonnes to 2.3 million tonnes. Imports will, on the other hand, continue to drop from 3 to 3.5 million to 1.8 million tonnes and exports are expected to increase from 1.3 million tonnes to 2.5 million tonnes. For the upcoming harvest, no longer bound by the limitations of the quota, an increase in production of roughly 20 per cent (20.1 million tonnes) is expected. This increase results from both an increase in area and higher yields because of good climatic conditions.
Delhi sugar prices end quiet on some support.
Sugar prices settled quiet at the wholesale market in the national capital on sporadic buying support amid adequate stocks availability. Besides scattered buying by stockists and retailers, sufficient position of stocks in the market, kept the sweetener’s prices unaltered.
Jaggery producers to compete with India sugar mills to buy early cane.
Encouraged by a sharp increase in realisation through last year, jaggery manufacturing units (termed kolhus) say they’re equipped for a price battle with sugar mills on sugarcane purchase. Sugar mills in Uttar Pradesh and Maharashtra, the top two producing states, have announced an early start to crushing this year (the sugar season begins October 1). This was reportedly to get the early variety of cane, normally supplied to kolhus. Jaggery makers traditionally start their operations in September with this early variety, which offers lower yield than the matured type. Crushing of this type of cane, therefore, becomes uneconomical for sugar mills.
Malaysia CPO up on CBOT cues, low output concern.
Futures contracts of crude palm oil on Bursa Malaysia Derivatives up tracking soyoil contracts on CBOT and due to concern about lower output in the coming months. The most-active December crude palm oil contract on the Malaysian bourse at 2,741 ringgits (42,175 rupees) per MT, up 27 ringgits from previous close. A weak ringgit against the dollar is also seen pushing prices of the palm oil higher
India mustard oil edges up on scattered demand.
In restricted activity, mustard oil edged higher on mild local demand. However, other edible and non-edible oils moved in a narrow range in limited deals and pegged at last levels. Some local demand helped mustard oil prices to trade higher.
Canada bulk soybean down from 2016.
The Canadian Grain Commission (CGC) reports 34,500 metric tons (MT) soybeans were loaded for export through licensed facilities which are required to report to it all grain movement in August, compared to 59,300 MT the same month last year. Of bulk soybeans loaded to for export during the month, 26,700 MT went through Vancouver terminals; 3,300 MT were shipped direct from Prairie elevators; and 4,500 MT were shipped through Bay and Lake ports in eastern Canada. Reviewing shipments by destination for the month, the CGC said 26,700 MT of No 2 Canada soybeans were shipped to China; 4,500 MT of No 2 Canada to Ireland; and 3,300 MT of other grades to the United States.
India should allow GMO to boost lagging soybean yields, US says.
For India to increase production, it should allow the use of innovative technologies, including GMO. Despite its lofty position in the global rankings, India produces barely a tenth of America’s output of 120m tonnes [of soybean crop], despite a considerably higher population that mainly purchases vegetarian ingredients, and a massive feed market. As a result the country must find ways to boost production and supply.
New crop groundnut arrivals begin in Gujarat, prices fall.
Arrivals of groundnut from new crop started in some parts of Gujarat almost a week ago, and prices have fallen below last year level. In the benchmark Gondal market in Gujarat, average daily arrivals of groundnut estimated around 25,000 bags (1 bag = 35 kg), up from 12,000-15,000 bags a year ago.
CBOT soybean up on short covering.
Futures contracts of soybean marginally up on the CBOT as investors covered their short positions. Contracts fell earlier due to improved sowing operations in Brazil.
Telangana govt urges Centre to begin 2017-18 soybean procurement.
Telangana government has asked the Centre to begin procurement of soybean grown in the 2017-18 (Jul-Jun) kharif season at the minimum support price to prop up the falling prices in the physical markets. The average yield of the crop is also seen rising this year due to favourable weather.
Indore soybean prices unchanged on subdued trade.
Prices of soybean in the key wholesale market of Indore largely unchanged due to subdued trade. Trade subdued due to weak demand. Demand is currently low due to poor quality of most arrivals. Prices fell around 50 rupees last week due to persistent poor demand.
NAFED procures 168 MT of kharif moong in Telangana.
The National Agricultural Cooperative Marketing Federation of India has procured 168 tn of moong grown in the kharif season under the price support scheme in Telangana. The procurement is underway in Mahabubnagar, Warangal, Khammam, Zaheerabad, Ranga Reddy, Suryapet, Narayankhed and Vikarabad districts. NAFED started procuring the pulse mid-September. Around 250 farmers have sold their crop to the agency.
Tur prices down in Akola on lower demand from mills.
Prices of tur in Akola down because of a decline in demand from millers and expectations of higher yield due to favourable weather. Reports of sale of the pulses by the government from its buffer stocks is also seen creating bearish sentiment
Canada August bulk pea movement off 67%.
The Canadian Grain Commission (CGC) reports 94,900 metric tons (MT) field pea were loaded for export through licensed terminal and primary elevators which are required to report to it all grain movement in August. The CGC data does not include exports in containers or from non-reporting terminals. It is important to recall that the CGC data may not match official export data. The CGC counts product when it is loaded to ships, while Statistics Canada bases its calculations on the bill of lading date. The CGC reports exports are down 67% from the 292,000 MT shipped the same month last year. Of bulk peas loaded to for export during the month, 94,300 MT went through Vancouver terminals; and 600 MT were shipped direct from Prairie elevators to destinations in the United States.
Canada bulk lentil shipments start slow.
The Canadian Grain Commission (CGC) reports 2,600 metric tons (MT) lentils were loaded for export through licensed facilities which are required to report to it all grain movement in August, compared to 300 MT the same month last year. All the bulk lentil loadings for the month were in Prairie elevator locations. The CGC does not include exports through cleaning plants or in containers. Reviewing lentil shipments by destination for the month, the CGC said 2,000 MT of other grades were shipped to Mexico; and 600 MT of other grade lentils to the United States.
FCI to auction 2,075 tn moong via NCDEX e-markets on Oct 05.
Food Corp of India will offer 2,075.27 tn of moong and 741.60 tn of urad for auction through NCDEX e-Markets. The pulses, to be auctioned, are stocked at godowns in Maharashtra, Andhra Pradesh, Gujarat and Rajasthan. FCI is selling pulses through NCDEX e-markets to dispose off its huge stock built through procurement from farmers and high imports in 2016-17. (Apr-Mar).
MMTC to auction tur, urad via NCDEX e-markets on Oct 05.
MMTC will offer 4,304 MT of tur imported from Malawi and Mozambique, 3,438 MT of masoor imported from Canada and 1,279 MT of urad imported from Myanmar, for auction through NCDEX e-markets. Pulses, to be auctioned, are stocked at Central Warehousing Corp and other godowns in Maharashtra, Gujarat, West Bengal, and Tamil Nadu.
India govt to offload 700,000 MT pulses from 1.8 MMT buffer stock.
The government is likely to offload 700,000 tn pulses from its buffer stock in the coming days, of which 350,000 tn will be sold to state governments and rest is expected to be sold through open market sales scheme. Out of the 1.8 MMT buffer stock of pulses, government will sell 350,000 MT to these three (Gujarat, Karnataka, Tamil Nadu) states and (another) around 350,000 tn through open market sales scheme