Prices of rabi maize fell in Purnea, the benchmark market, because of higher arrivals. In Purnea, Bihar, maize was quoted down from the previous day. The arrivals were pegged at 150,000-200,000 bags (1bag=100kg) compared with 100,000-150,000 bags on previous close. It is the peak season for maize (rabi) arrivals in Bihar. Prices are likely to fall in the coming days due to abundant supplies. Prices, however, may rise marginally from the current levels because recent rains and thunderstorms are likely to hit the standing crop in Bihar. In Devangere, a wholesale market in Karnataka, prices fell due to sufficient supplies. The coarse grain traded down 10 rupees from the previous close. Arrivals were around 1,200 bags, up 100-200 bags from previous close.
Maize kharif futures plunge by Rs 42/quintal.
New Delhi Maize prices slumped by Rs 42 in futures trading after trimming of holdings by participants, triggered by a weak trend at the physical markets. Cutting down of holding by participants amid a weak trend at the spot markets due to a muted demand led to fall in maize kharif prices at futures trade here. At the National Commodity and Derivative Exchange counter, maize kharif for delivery in May contracts plummeted by Rs 42, or 2.95 per cent, with the business turnover of 870 open lots.
Govt FY18 wheat procurement up 21.5% on year at 27.1 million tonne so far.
The government has procured 27.1 million tonne wheat so far in the 2017-18 (Apr-Mar) marketing year, up 21.5% on year. (still short of its target of 33 million tonne for the current fiscal). Purchases are highest in Punjab where the government has bought 11.49 million tonne, slightly lower than its target of 11.50 million tonne. At 7.33 million tonne, wheat procurement in Haryana is also close to the target of 7.50 million tonne. In Uttar Pradesh, the largest wheat-producing state, 1.51 million tonne has been purchased so far, sharply higher than a year ago but way behind the target of 3 million tonne for this year. Procurement in Madhya Pradesh is also unlikely to reach the target of 8.50 million tonne for the year as arrivals are declining in the state and the government has been so far able to procure to 5.85 million tonne of the grain.
Wheat prices rise in Delhi, unchanged in Indore.
Prices of wheat rose in the markets of Delhi for the second day after it fell on previous close. Following the government forecast of a high production this year. Wheat prices in Delhi were up 5 rupees per 100 kg from previous close. In the markets of Indore, wheat prices were unchanged in thin trade. On NCDEX, the most active June wheat contract ended up 0.06% from the previous close.
USDA pegs India FY18 wheat output at 97 million tonne, up 11.5% on year.
The US Department of Agriculture has pegged India wheat production in 2017-18 (Apr-Mar) at 97.0 million tonne, up 11.5% from 87.0 million tonne estimated for 2016-17. The increase is due to favourable weather, boosting yields in the main wheat producing areas. Imports were likely to remain high in 2017-18 because of cheaper availability of the grain in global markets. In 2017-18, global wheat production is likely to fall by 2% to 737.83 million tonne due to lower output in the US, Argentina, Australia, and Canada. In the US, the decline is likely seen resulting from a sharp reduction in acreage and lower yields. Global wheat consumption is projected down slightly from last year record with reduced feed and residual usage partially offset by increased food use.
Mustard seed tad up in Jaipur on renewed demand.
Mustard seed tad up in Jaipur on renewed demand.
NCDEX soybean futures tad down on lack of spot cues.
NCDEX soybean futures tad down on lack of spot cues.
Weekly Edible Oil Outlook. Mixed; soybean, mustard seen down, crude palm oil up.
Weekly Edible Oil Outlook. Mixed; soybean, mustard seen down, crude palm oil up.
3rd Advance Estimates of oilseeds 2016-17.
3rd Advance Estimates of oilseeds 2016-17.
Urad prices up in Delhi on demand from stockists.
Urad prices up in Delhi on demand from stockists.
Tur prices up in Gulbarga due to improved demand.
Tur prices up in Gulbarga due to improved demand.
Delhi chana up as arrivals lower than expected.
Delhi chana up as arrivals lower than expected.
3rd Advance Estimates of pulses 2016-17.
3rd Advance Estimates of pulses 2016-17.
Jaipur barley up on rise in demand amid lower supply.
Jaipur barley up on rise in demand amid lower supply.
NCDEX barley up on bargain buying post 14-month low.
NCDEX barley up on bargain buying post 14-month low.
NCDEX coriander down on profit booking, high stocks.
The May and June contracts of coriander on the NCDEX fell because traders booked profits after the May contract hit a one-week high. The fall was also triggered by a 477-tonne rise in inventories at exchange-accredited warehouses at 30,296 tonne on Tuesday. The front-month May contract on the exchange traded down 0.5% from the previous close. The June contract was down 0.6%.
MCX cotton down on high output view.
Futures contracts of cotton on the MCX traded lower in anticipation of higher output in 2017-18 (Oct-Sep). India 2017-18 cotton acreage is seen rising as better returns for the cash crop in the current season could encourage farmers to cultivate the fibre crop in more area. Subdued demand because of inferior quality arrivals in the domestic market and weakness in cotton futures on the ICE further contributed to the fall. On the MCX, the May contract traded per bale (1bale=170kg), down 0.10% from the previous close, while on the ICE. Most active July contract traded at 77.38 cents per pound, down 0.06%. Cotton prices also declined ahead of the USDA monthly demand-supply report.
All-India cotton arrivals down at 52,500 bales Tue.
All-India cotton arrivals down at 52,500 bales Tue. Cotton arrivals at major spot markets across the country were at 52,500 bales (1 bale = 170 kg) on Tuesday, down from 57,900 bales previous close.
Brazil Jan-Mar container sugar exports up 14% on year.
In terms of containers, sugar export from Brazil rose 14% on year to 591,121 tonne in Jan-Mar. Brazil is the largest producer and exporter of the commodity. The main destination of exports was Myanmar at 125,560 tonne, followed by South Africa at 55,331 tonne. Most exports of sugar in containers is crystal sugar, also known as whites. Brazil exports mainly raw sugar in bulk vessels. The most active July sugar on the ICE was up 1.2% from the previous close.
WASDE CORN MAY OUTLOOK
The U.S. feed-grain outlook for 2017/18 is for lower production, domestic use, exports and ending stocks. The corn crop is projected at 14.1 billion bushels, down from last year’s record high with a lower forecast area and yield. The yield projection of 170.7 bushels per acre is based on a weather-adjusted trend assuming normal planting progress and summer weather, estimated using the 1988-2016-time period. The yield model includes a downward stochastic adjustment to account for the asymmetric response of yield to July precipitation. The smaller corn crop is partly offset by the largest projected beginning stocks since 1988/89, leaving total corn supplies down from a year ago but still the second highest on record. Total U.S. corn use in 2017/18 is forecast to decline 2 percent from a year ago as a slight increase in domestic use is more than offset by lower exports. Food, seed, and industrial (FSI) use is projected to rise 80 million bushels to 7.0 billion due to increased use of corn to produce ethanol for fuel and expected growth in non-ethanol FSI. Corn used to produce ethanol is up 50 million bushels, reflecting expectations of gasoline consumption growth, reduced sorghum used to produce ethanol, higher expected blending and continued global ethanol import demand. Projected feed and residual use declines as a smaller crop and increased use of ethanol by-products more than offsets growth in grain consuming animal units. U.S. corn exports are down 350 million bushels, as a 1.0-billion-bushel year-over-year increase in the combined corn exports of Brazil and Argentina during 2016/17 (local marketing years beginning in March 2017 and ending February 2018) is expected to cut into the 2017/18 U.S. shipping season. With total supply falling faster than use, 2017/18 U.S. ending stocks of corn are down 185 million bushels. The season-average farm price is projected at $3.00 to $3.80 per bushel, unchanged at the midpoint from 2016/17. The global coarse grain outlook for 2017/18 is for lower production, increased use and sharply reduced ending stocks. Corn production is forecast down from a year ago, with the largest declines in China and the United States. Partly offsetting are larger crops projected for the EU and Canada. Global corn use is up 9 million tons (1 percent), while global corn imports are projected to increase 7 million tons. Notable increases in corn imports include Vietnam, Egypt, the EU, Saudi Arabia, Mexico and Iran. Global corn ending stocks are down from last year’s record high and if realized would be the lowest since 2013/14. The drop largely reflects forecast declines for China and the United States. For China, total corn supply is down 14 million tons in 2017/18, based on projected declines in beginning stocks and production. Area is reduced based on planting intentions published by the National Bureau of Statistics. On the demand side, feed and residual use is expected to increase based on continued relatively low internal market prices, efforts by the government to promote use of domestic supplies and reduced imports of corn substitutes. Projected FSI use is higher based on expectations of growth in domestic use and exports of corn-based industrial products.