Prices of barley rose in Jaipur due to bargain buying by poultry feed sector after prices hit a three-week low of 1,360 rupees per 100 kg. In Jaipur, the benchmark market, barley was sold at 1,400 rupees per 100 kg, up 40 rupees from previous close. Limited supplies in the market also lifted prices of the grain. However, the overall sentiment remains bearish as demand from malt industries, the key buyer of the commodity, was subdued following concerns over quality of the domestic stocks.
Thailand expected to export 11 million tons of rice this year.
Thailand is expected to export an estimated 11 million tons of rice throughout this year. The 11-million-ton rice for export throughout this year projected by the Ministry of Commerces Department of Foreign Trade compared to some 9.5 million tons earlier forecast by the Thai Rice Exporters Association. Some 6.7 million tons of the Thai rice has already been exported so far this year.The Thai rice sales volumes have apparently increased due to rising demands in the world rice market, including Indonesia which has accounted for a 679 percent increase in the purchase orders of the Thai rice, Malaysia which has accounted for a 53 percent increase and the Philippines which has marked a 25 percent increase.
Thailand rice offered at $449.50 c&f lowest price in Iraq buying tender
The lowest offer in the international tender from Iraq’s state grains buyer to purchase at least 30,000 tonnes of rice was $449.50 a tonne c&f free out for rice to be sourced from Thailand. The lowest offer was made for 40,000 tonnes. Another offer for Thai rice was made at $469.80 a tonne c&f free out. Most offers were made for rice from Uruguay, with the lowest price at $568.75 a tonne c&f free out. Lowest offer for US rice was $655 a tonne c&f free out.
India Non-basmati rice exports rise by 36% in 2017-18 fiscal
Export of rice, specifically the non-basmati varieties, rose by 36% in the 2017-18 fiscal in comparison to the last financial year. The basmati and non-basmati rice exports figures in 2016-17 fiscal stood at 39.85 lakh metric tonne and 67.70 lakh metric tonne respectively. In 2017-2018, while the export volume was marginally more for basmati rice (40.56 lakh metric tonne), it saw a significant jump in the case of non-basmati rice (86.48 lakh metric tonne). India has been leading its rivals Thailand and Vietnam in rice exports for the past three years. This record export fetched India foreign currency worth Rs 50,000 crore. The share of basmati rice is Rs 26,000 crore, while Rs 24,000 crore has come from non basmati exports.
Kharif paddy area down 3% on year at 30.8 mln ha.
The area under paddy crop across the country this kharif season was at 30.8 mln ha. The area under paddy was higher than the average 30.5 mln ha for the period. Though paddy sowing in the country was lower on year, the lag in acreage has reduced from over 4% a week ago to 3%. The fall in acreage can be attributed to lower sowing in top producers Uttar Pradesh, Assam, Bihar, Odisha, and Jharkhand due to weak monsoon rains. During Jun 1-Aug 12, the country received 503.2 mm rainfall, 11% below the normal weighted average of 562.3 mm.
RICE WASDE AUGUST OUTLOOK:
Total U.S. rice supplies for 2018/19 are raised slightly from last month due to increased beginning stocks that were mostly offset by a smaller crop. Beginning stocks are raised 2.5 million cwt on a 3.5-million export reduction for the 2017/18 crop year that is partially offset by increased domestic and residual use. U.S. rice production is lowered 2.1 million cwt to 210.9 million on the first survey-based yield forecast of the 2018/19 season. Long-grain production is lowered 2.8 million cwt, while combined medium- and short-grain is raised 0.7 million cwt. The all rice yield forecast is lowered 76 pounds per acre from the previous forecast to 7,523. Exports for the 2018/19 crop year are lowered 4 million cwt to 98 million on a lack of price competitiveness relative to both Asian and South American exporters. Ending stocks are raised 1.4 million cwt to 43.6 million and the 2018/19 all rice season-average farm price is lowered $0.20 per cwt at the midpoint to a range of $11.40 to $12.40. Global supplies for 2018/19 are lowered fractionally on reduced production for Madagascar and Iraq. World trade is raised slightly, led by higher Pakistan exports and Iraq imports. Global exports remain record large. Global consumption and ending stocks are each lowered fractionally.
WHEAT WASDE AUGUST OUTLOOK:
The outlook for 2018/19 U.S. wheat this month is lower supplies, greater use, and reduced stocks. Wheat production is lowered 4 million bushels to 1,877 million on a slight reduction in winter wheat and durum production as indicated by the NASS August Crop Production report. Projected food use is increased by 5 million bushels to 970 million based on the latest NASS Flour Milling Products report. This would be record food use, surpassing 2017/18, which was also revised higher. Projected wheat exports are raised 50 million bushels to 1,025 million on substantially lower exportable supplies for the EU and limited additional export capacity of several other major competitors. Projected 2018/19 ending stocks are reduced 50 million bushels to 935 million, down 15 percent from last year. The projected season-average farm price is up $0.10 per bushel at the midpoint with the range at $4.60 to $5.60. World 2018/19 wheat supplies are reduced this month by 7.1 million tons, primarily on lower EU production. Continued drought conditions in several northern European countries, most notably Germany, resulted in lower production, down 7.5 million tons to 137.5 million. This would be the lowest EU wheat production since 2012/13. Russia’s wheat production is increased 1.0 million tons to 68.0 million on continued favorable conditions for spring wheat. Projected global 2018/19 trade is lower, mainly on reduced EU exports, which are down 4.5 million tons to 23.0 million, the lowest in six years. Russia’s exports are increased 1.0 million tons to 35.0 million; Russia is projected to remain the leading world wheat exporter for the second consecutive year. Global imports are lowered for several countries with the largest reduction for Algeria. Projected 2018/19 world consumption is 5.1 million tons lower, primarily on reduced feed use in the EU and Russia. Global ending stocks are down 1.9 million tons to 259.0 million, down 5 percent from last year’s record.
China sells 1,303 T of imported 2013 wheat at auction of state reserves.
China sells 1,303 tonnes of imported 2013 wheat at auction of state reserves at an average price of 2,351 yuan ($341.79) per tonne. Sale represents 0.07 percent of total wheat available at the auction. China also sells 2,070 tonnes of 2012 wheat at auction of state reserves at an average price of 2,360 yuan per tonne, according to the trade center. The sales volume represents 1.93 percent of total wheat available at the auction.
Russian wheat exports up 90% at 4.6 mil mt in marketing year to August 8
Russian wheat exports between the start of the marketing year on July 1 and August 8 were 4.63 million mt, up 90% on the year. The faster pace than last year reflects an earlier-than-usual harvest as a result of hot, dry weather, which prompted farmers to begin much earlier than expected to minimize heat and drought damage to crops. Despite this, crop production forecasts are much lower at around 70 million mt for 2018-19 than 2017-18s 85 million mt harvest. Supply constraints have subsequently pushed prices to record highs. Deep sea port 12.5% protein wheat was assessed by S&P Global Platts at a 41-month high of $231.50/mt. The forecast for Russian production was revised up 1 million mt to 68 million mt. Exports too were revised up 1 million mt to 35 million mt but still well short of the 42 million mt exported in 2017-18.
Spot wheat prices up on improved demand
Spot prices of wheat edged slightly higher in key markets of Delhi and Kota due to improvement in demand from bulk buyers. In Delhi, spot prices of mill-quality wheat were at 1,970-1,980 rupees per 100 kg. Price of mill-quality wheat in the Kota, a key market, was at 1,840-1,880 rupees per 100 kg, up from 1,850-1,870 rupees on previous close. Prices edged higher in Kota also because of a fall in daily arrivals. Daily supply of wheat is down because the government procured the food grain aggressively this year. The government procured 35.5 mln tn of wheat in 2018-19 (Apr-Mar), against 30.8 mln tn in the previous year. On NCDEX, the front-month August contract of wheat moved in a narrow range and ended at 1,972 rupees per 100 kg, down 0.3% from the previous close.
France Jun pea exports down 6% on month at 16,775 tn.
Export of peas by France was down 6% on month in June at 16,775 tn. On year, however, the exports were up 24%. As of June-end, inventories of peas in France were estimated at 285,495 tn, down 2% on year. Belgium was the most important destination, taking 10,560 tn. Netherlands was the second most important destination at 3,120 tn, followed by Italy at 1,535 tn and Spain at 587 tn. India is one of the largest importers of peas in the world, but due to imposition of import duty last year, imports have declined substantially.
Pulses import Jul at Chennai port up 6-fold on month on high urad buys
Import of pulses at Chennai port rose over sixfold on month in July to 41,856 tn because of higher buys of urad. Imports of urad increased substantially to 32,184 tn in July from 3,888 tn in June and 27,120 tn in the corresponding period last year. Imports of some pulses have seen a revival over the past two months with the start of the new financial year. The government had last year imposed quantitative restrictions annually on tur, urad and moong to curb cheaper imports into the country. Total imports of tur into the country were restricted to 200,000 tn and that of urad and moong were limited to 150,000 tn each.
Tur prices rise in Akola, unchanged in Kalaburagi.
Prices of tur in Akola rose because the commodity’s stock with NAFED, which was selling it in the open market, have reduced significantly. In Akola, the benchmark market for tur, prices were at 3,875-3,900 rupees per 100 kg, up 25-50 rupees. The arrivals were steady at 750-800 bags (1 bag=100 kg). In Kalaburagi, a key market, prices were unchanged and arrivals were pegged unchanged.
Globally chana stocks are limited
Globally chana stocks are limited as Australia, the second largest producer of the pulse after India, is facing a severe drought this year which may see the output falling below 500,000 tn. In June, the Australian Bureau of Agricultural and Resource Economics and Sciences had forecast that the chana crop in the country in 2018-19 (Apr-Mar) may fall to 616,000 tn, down 40% from 1.03 mln tn seen in 2017-18. Currently, the price of the Australian chana is around $700 per tn for the old crop and $720 for the new crop that will be harvested soon.
In a first since export sops, 2,500 tn chana on way to Bangladesh.
India is exporting 2,500 tn of chana to Bangladesh, in a first deal since the government approved the export incentive on chana. Government had announced a 7%-export incentive on chana or Bengal gram in March under the Merchandise Exports from India Scheme. The deal (to export a total 2,500 tn chana) were contracted by a global grain company in a range of $640-$690 per tn, cost & freight basis, to be transported via rail.
Cabinet OKs sale of pulses to states at 15-rupee/kg discount on spot
The Union Cabinet today approved the farm ministry’s proposal to provide pulses at a discount of 15 rupees per kg on wholesale rate to the state governments. Pulses would be provided to states from the stock procured under the price support schemes. Under this approved scheme, the state/UT (Union Territory) governments are offered to lift 3.488 mln tn of tur, chana, masur, moong and urad at a discount of 15 rupees per kg over the prevailing wholesale market price of the sourcing state on first come first serve basis.
Jaipur barley down on talk of imports from Argentina.
Prices of barley were down in Jaipur on talk of the grain being imported from Argentina due to concerns over quality of the domestic stocks. Demand from malt industries and stockists is subdued due to poor quality of barley stocks, and this has weighed on prices. However, limited supplies and demand from poultry feed sector cushioned the fall in prices. In Jaipur, the benchmark market, barley was sold at 1,390 rupees per 100 kg, down 20 rupees.
Tax expenditure on govt wheat, rice buys down post GST implementation.
The tax expenditure on procurement of wheat and rice by the government has come down “significantly” after implementation of the goods and services tax. The total tax expenditure on procurement under the GST regime is estimated at 65.3 bln rupees, down from an estimated 153.6 bln rupees before GST was implemented. However, state governments are imposing various cesses/fees like Rural Development Fee, Market Fee, Nirashrit shulk etc on foodgrains procured within the states even after implementation of GST. The rates of such cesses levied by the state governments vary from state to state.
Source says FCI sold 95,150 tn wheat in 4th open market sale for FY19
Food Corp of India sold 95,150 tn of wheat in the fourth round of auctions under the open market sales scheme for 2018-19 (Apr-Mar). At the auction, which ended on Thursday, the agency had offered 2.4 mln tn of the food grain. Response to wheat auction has been good mainly from West Bengal, Madhya Pradesh, Punjab and Haryana. The agency had sold 102,950 tn of wheat in the third round, held on Aug 2. For Jul-Sep, the government has fixed the base price for selling wheat under the open market sales scheme at 1,900 rupees per 100 kg.
HC to hear Madhya Pradesh basmati geographical tag claim case Aug 17
The Madras High Court has deferred to Aug 17 the hearing of Madhya Pradesh government’s petition seeking geographical indication tag for basmati grown in the state. The court was supposed to hear this case on Tuesday. The Madhya Pradesh government had filed a fresh petition after Geographical Indication Registry, in March, had rejected the state’s plea to be included among those growers whose variety of rice can be marketed as basmati. Madhya Pradesh has been fighting to claim geographical indication tag for basmati since 2013. Geographical Indication certifies products or crops that have a specific origin and possess qualities or reputation pertaining to that geographical origin, such as Darjeeling Tea, Nagpur Orange and Mysore Silk. The state had demanded inclusion of a few of its districts–Morena, Bhind, Gwalior, Sheopur, Datia, Shivpuri, Guna, Vidisha, Raisen, Sehore, Hoshangabad, Jabalpur and Narsingpur–under the regions suitable for cultivation of basmati.