Ram Gopal Yadav

Russia Agriculture Ministry has proposed cutting wheat prices for its restocking programme in the 2017/18 marketing year which starts on July1, signalling stronger competition in the domestic market. The ministry has 4 million tonnes of grains in state stocks, buys grain on the domestic market every year as interventions. it would offer 10,300 roubles ($183) for a tonne of third-class wheat in the domestic market during the 2017/18 year, compared with 10,900 roubles in the current programme. Domestic price has been declining in and expected to come under further pressure due partly to a Russian dispute with Turkey over agricultural trade and to the need for Russian farmers to offload their stock before the new crop hits the market in the summer.

Fast moving consumer goods major ITC Ltd has purchased 15,000 tonne new wheat crop from Kota market. StarAgri, an agricultural marketing company has also been buying 2,000-3,000 tonne of wheat from Kota every day. Many other trading houses are buying the commodity since the start of new crop arrivals to build up their stocks. About 70,000 bags (1bag=100kg) of wheat arrive in the Kota market in Rajasthan daily. Supplies are yet to peak and may cross 100,000 bags in next 15 days.

Wheat up in spot market post import duty.

CBOT wheat prices were pressured by weather factor.

Japan seeks to buy 120,000 tonne feed wheat via tender.

Wheat Tax Would not stopped Imports to Southern India, said Millers.

Prices of wheat rise in major wholesale markets of the country after the govt levied 10% customs duty on import of wheat. Demand from bulk buyers was higher as the duty is expected to restrict imports, which will affect supply in the domestic market. The impact is likely to be offset by high arrivals of the new crop. In Kota, about 70,000 bags (1bag=100kg) arrive every day and supplies are likely to cross 100,000 bags in the next 15 days. Wheat prices also rise in Delhi. Prices remained unchanged in Indore market as arrivals were high and traders do not expect the import duty to have an immediate impact on supplies.

CBOT wheat prices declined (-3.44%). In the spot market, the supply price for US wheat (April delivery) lost USD 6. Despite the information on winter wheat conditions worsening in the largest producing states of the USA–Oklahoma and Kansas, the wheat futures continued to go down. The prices were pressured by a weather factor–a rain forecast in the regions of winter wheat production in the USA, which will refill soil moisture reserves.

Japan Ministry of Agriculture said it would buy 120,000 tonnes of feed wheat to be loaded by July31 and arrive in Japan by Sept. 29, via a simultaneous buy and sell auction that will be held on April5. The tender is usually conducted weekly, but the ministry skipped the tender this week due to an adjustment at the end of the fiscal year that will end on March31. Japan buys and sells its feed wheat via simultaneous buy and sell auction, in which end-users and importers specify the origin, price and quantity of grain, allowing millers to meet their varied needs for the feed grain.

Flour millers in South India will continue importing wheat from Australia and the Black Sea region even with the 10% duty imposed this week as its cheaper than locally grown supplies. Imports may reach as much as 2 million tonnes in 2017-18 with 80 to 85% likely coming from Australia and the remainder from the Black Sea. Importers will initially try to sell 250,000 tonnes to 300,000 tonnes of wheat stored near Tuticorin Port in the southern state of Tamil Nadu. India is seeking to rebuild stockpiles that plunged 44% in March from a year earlier to 9.43 million tonnes. India has been purchasing high-protein grain from Australia, Russia and Ukraine.