India rice basmati weakens on fall in demand.
Farmers sell pulses at a loss as wholesale prices dip below MSP.
Wholesale prices of just harvested kharif pulses have dropped below the government’s minimum support prices (MSP) despite a lower crop output, forcing farmers to sell their produce at a loss in states such as Rajasthan. The prices are lower despite a 7.5% drop in estimated production of kharif pulses in 2017-18 (year-on-year) as ample stocks are available from the previous (2016-17) crop season.
NAFED to auction 6,353 metric tonne urad via NCDEX e-Markets.
The pulse is stocked at Central Warehousing Corp and other godowns in Uttar Pradesh, Tamil Nadu, Andhra Pradesh, Gujarat, and Maharashtra.
NAFED procures 1,870 metric tonne of kharif moong in 3 states.
NAFED started procuring moong as market prices fell below the minimum support price of 5,575 rupees per 100 kg, inclusive of a bonus. Over 1,500 farmers have been benefitted from the procurement drive that was started mid-September in Telangana, and later extended to Karnataka and Rajasthan.
Tur tad up in Akola on slight recovery in demand.
Tur prices in Akola rose slightly due to a rise in demand from dal millers and positive sentiment created with the procurement of pulses by the government.
Chana prices down in Delhi, unchanged in Bikaner.
Prices of chana were down in Delhi on subdued demand from dal millers. Expectations of a rise in the sowing of chana this season amid lower demand is seen creating a bearish sentiment. The most active November contract chana on the NCDEX was up 0.6%.
Farm pricing panel recommends 375 rupees/100 kg hike in chana MSP.
The Commission for Agricultural Costs and Prices has recommended increasing minimum support price of chana by 375 rupees per 100 kg for the new marketing year beginning April. The support price of chana was 3,800 rupees per 100 kg, plus a bonus of 200 rupees, this year. The Commission just recommends a support price and the bonus, if any, is decided by the Union Cabinet.
CBOT soyoil down 0.6% tracking Malaysia CPO.
The most active December futures contract on the CBOT traded at 33.07 cents per pound, down 0.6% from previous close. The US Environment Protection Agencies’ suggestion to curb the bio diesel usage in the country in 2018 is also seen weighing on prices. A 15% reduction in the usage of biodiesel in the US during 2018-19 is estimated, which reduce the demand for the soyoil thus weighing on the prices.
Malaysia Sept palm oil inventory up 4% on month at 2.02 million metric tonne.
Malaysia’s crude palm oil inventory in September rose 3.98% on month to 2.02 million metric tonne, while exports increased 1.82% to 1.52 million tn. However, palm oil production declined 1.69% on month in September to 1.78 million tn. Crude palm oil stocks were at 1.07 million metric tonne at the end of September, up 0.96% on month. Processed palm oil stocks were also up, rising 7.58% on month to 952,550 tn. Malaysia is the world’s second-largest producer and exporter of palm oil. Biodiesel exports from Malaysia were at 8,393 metric tonne in September, down from 12,375 metric tonne sold overseas in August.
Indonesia palm oil body says India’s import up 24% on month in August.
India palm oil imports from Indonesia rose 24% on month in August to 786,820 metric tonne though the country doubled import duty on the commodity earlier that month. Declining domestic vegetable oil stocks and a fall in soybean production in Canada and Australia at the same time due to unfavourable weather prompted this increased buying. The decline of soybean output in several key producing countries may trigger a drop in vegetable oils stock globally and likely drive up palm oil prices. Indonesia’s palm oil exports to India in Jan-Aug amounted to 5.21 million tn, 49.7% higher than 3.48 million metric tonne last year. In 2016, Indonesia exported 5.78 million metric tonne of palm oil to India.
Groundnut rates unch in Gondhal, to fall post Diwali.
Prices of groundnut seed were unchanged in Gondal, Gujarat, as demand from crushers supported prices, while higher stocks with the government limited gains. New crop arrivals of groundnut seed are expected to increase post Diwali to around 50,000 bags (1bag=20kg) from current arrivals of 25,000-30,000 bags. Prices of groundnut seed are expected to fall by 40-50 rupees from the current rates due to higher arrivals.
Soybean down in Indore market on rise in supply.
Prices of soybean fell in the benchmark market of Indore, Madhya Pradesh, due to rise in supply. Weakness in spot prices also weighed on the futures. The most-active November soybean contract on NCDEX was down 0.1% from the previous close.
NCDEX mustard up on short covering, export demand.
Futures contracts of mustard seed on NCDEX rose due to short covering by traders as prices declined in the last two trading sessions. The most-active November contract was up 0.6% from previous close. Expectations of higher mustard meal exports during September is likely to support mustard seed prices.
Brazilian cane crush, sugar output down in late September -Unica.
Mills in centre-south region crushed 40.3 million metric tonne of cane during the second fortnight in September, down 5.2% from the same period a year earlier. During the period, they produced 2.9 million metric tonne of sugar and made 2 billion liters of ethanol. Brazil is the world’s largest producer of the sweetener and its centre-south region produces 90% of the country’s sugar.
ICE sugar ends up 1% as mills shift to ethanol.
Futures contracts of sugar 11 ended higher as millers in Brazil are producing more ethanol compared to sugar. The most active March ICE sugar 11 contract ended 1.2% higher at 14.17 cents a pound
Cane crushing in Uttar Pradesh seen delayed on low sugar recovery.
Mills in Uttar Pradesh are likely to delay crushing operations for 2017-18 (Oct-Sep) season to the last week of October due to poor sugar recovery from cane. Immediate start of sugarcane crushing seems bleak. It is highly unlikely as the sugar recovery is very low currently. The average sugar recovery in west Uttar Pradesh is coming out to be only 7%. The average sugar recovery from cane in Uttar Pradesh was at 10.61% in 2016-17.