Futures contracts of cotton rose nearly 1% on the MCX because of higher demand in the spot markets, and tracking benchmark contracts on the ICE. May contract of cotton on the MCX traded up 0.8% from the previous close. The June contract also traded 0.7% higher at 21,390 rupees. On the ICE, the most-active July contract traded at 77.53 cents per pound. However, prospects of a higher acreage for cotton, amid reports of an early onset of the southwest monsoon in India, prevented any further rise in prices.
Tamil Nadu year to Sep 2018 sugar output seen down 45% at 600,000 tonne.
Sugar output in Tamil Nadu is seen falling more than 45% to 600,000 tonne in 2017-18 (Oct-Sep) from an estimated 1.1 million tonne this year. Last year, mills in the state had produced 1.37 million tonne of sugar. Sugar output next season is seen declining because of successive years of meagre rainfall in the state and a drop-in cane acreage. Tamil Nadu received 62% below-normal rainfall during the key northeast monsoon season in Oct-Dec. Back-to-back years of deficit rainfall and a severe drought this year have also dragged groundwater to abysmally low levels in the state. The state has a capacity to produce around 3 million tonne sugar annually.
India Sugar prices flat in key markets, seen bullish near term.
Prices of sugar were unchanged in key wholesale markets of Mumbai and Delhi today in thin trade. Sugar prices had risen last week in spot markets of north India due to increase in retail demand because the wedding season. Prices are seen falling in north India due to higher-than-expected sugar output in Uttar Pradesh. Mills in Uttar Pradesh produced 8.74 mln tn sugar during Oct 1-May 15, up 28.4% on year the most-active May contract was up 0.5%. Prices of sugar are seen up in the near term as demand for the commodity is likely to rise ahead of Ramzan. On NCDEX, the most active July contract of sugar was down 0.2% from previous close.
Uttar Pradesh Oct 1-May 15 sugar output 8.74 million tonne, up 28.4% on year.
Mills across Uttar Pradesh produced 8.74 million tonne sugar during Oct 1-May 15, up 28.4% on year. Total sugar production by mills in Uttar Pradesh in the year-ago period was 6.81 million tonne. Mills in the state have crushed 82.36 million tonne cane so far, compared with 64.18 million tonne in the year-ago period. Average sugar recovery in Uttar Pradesh was at 10.6%, unchanged on year. With five mills in Uttar Pradesh still operating, market participants expect sugar output in the state this season to touch an all-time high of 8.75 million tonne, surpassing the previous high of 8.47 million tonne in 2006-07. Mills, which are still running, are likely to wind up crushing operations by next week.
Jaipur barley down on low demand after quality woes.
Jaipur barley down on low demand after quality woes.
Wheat prices rise in Delhi as arrivals fall.
Wheat prices in Delhi were at 1,760 rupees per 100 kg, up 10 rupees per 100 kg from previous close, as arrivals of the grain fell. Arrivals of wheat from Uttar Pradesh fell as the state government is procuring wheat at better prices and farmers are not bringing the produce to Delhi. Arrivals in the state fell to 4,000 bags, each carrying 100 kg of the grain, from 5,000 bags on previous close.
Barley down on NCDEX taking cues from spot market.
Barley down on NCDEX taking cues from spot market.
India wheat up in spot market unchanged in indore.
Futures contracts of wheat traded higher on the National Commodity and Derivatives Exchange for the fourth consecutive session taking cues from gains in spot markets. The June contract of wheat on the NCDEX ended up 0.6% from the previous close. In the key wholesale market of Delhi, prices of wheat rose because of a fall in arrivals. The prices of wheat, however, were unchanged in Indore. Arrivals in Indore were also unchanged at 7,000-8,000 bags.
Food minister says allowed states to scrap stock limits on pulses.
Food minister says allowed states to scrap stock limits on pulses.
Food minister sees FY18 wheat buys falling 3 milion tonne short of target.
The government wheat procurement in the current marketing year that started April is likely to fall 3 million tonne short of its initial target of 33 million tonne. So far, govt. has procured 28.4 million tonne wheat and expect to buy 30 million tonne. Government had bought 5.9 million tonne wheat from farmers in Madhya Pradesh compared to a target of 8.5 million tonne. In Uttar Pradesh too, though the state government is eyeing procurement of 8.0 million tonne of wheat. actual procurement may even fall short of the central government initial estimate of 3.0 million tonne. Though procurement is seen lower than initial estimates, it has already topped last year total procurement of 23.0 million tonne, and would be enough to meet requirements under state-run welfare schemes this year.
Official says food ministry not in favour of hike in tur import duty.
Official says food ministry not in favour of hike in tur import duty.
NCDEX maize futures up on concern over crop damage.
Futures contracts of maize on the NCDEX were trading higher due to concerns that rains in Bihar might damage the crop. The recent rainfall in the state is likely to damage the harvested crop lying in farms. In its third advanced estimate released last week, the government pegged India rabi maize output in 2016-17 (Jul-Jun) at 6.97 million tonne, slightly higher than 6.89 million tonne estimated earlier. Total production of maize in 2016-17 is pegged at 26.14 million tonne, slightly lower than 26.15 million tonne estimated earlier. Most active June contract of maize was trading up 0.8% from the previous close.
NAFED procures 3,853 tonne rabi masur.
NAFED procures 3,853 tonne rabi masur.
Maize prices up on strong demand and low arrivals on rains in Bihar.
Prices of maize were up in the key wholesale markets of Purnea, Bihar, because of strong demand for the coarse grain. Demand was high as rainfall in the state raised concerns of damage in the harvested maize crop lying in farms. In Purnea, the mill quality of the grain was sold up nearly 20 rupees from previous close. Prices of the poor-quality maize also rose by 10-20 rupees per 100 kg. Arrivals of maize in Purnea were estimated at 9,000 tonne, higher than 8,000 tonne on previous close.
Traders say 60% soybean mills in Madhya Pradesh have shut operations.
Traders say 60% soybean mills in Madhya Pradesh have shut operations.
Paddy distress sale in Jaleswar; Bengal traders make huge.
Despite adverse climatic condition, this agricultural district of Balasore has recorded bumper harvest of paddy this season. But farmers still resort to distress sale as the procurement process is yet to commence in this region. On the other hand, traders from West Bengal are set to make huge profit cashing in on the helplessness of the poor farmers. Though the government assessment has put the production at 50 quintals, some farmers have harvested more than 80 quintals per hectare. However, despite such bumper production, farmers are selling their produce at something around Rs 1,100 per quintal to traders of West Bengal against the government-fixed minimum support price of Rs 1,470 for fair average quality (FAQ) standard of paddy. It is not only paddy, farmers who have raised groundnuts, green gram and black gram, also suffer from distress sale.
NCDEX soybean down nearly 1% due to poor demand.
NCDEX soybean down nearly 1% due to poor demand.
Centre-South Brazil Apr 2017-18 sugar output 1.12 million tonne, down 38% year on year.
Mills in Brazil Centre-South region produced 1.12 million tonne of sugar during the second fortnight of April, down 38.1% from 1.81 million tonne produced a year ago. The fall in sugar output can be attributed to delay in milling and low sugar recovery from cane. Mills in the region, which accounts for more than 90% of Brazil total sugar output, crushed 24.09 million tonne of sugarcane during Apr 2017-18 down 33.5% on year. Mills in the region crushed 41.71 million tonne of cane during April, down 39.7% on year. They produced 1.83 million tonne of sugar, down 43.8% on year. Of the total cane crushed, around 41.5% was used for sugar production, while 58.5% was used to make ethanol. Mills in Brazil Centre-South region are likely to produce 35.2 million tonne of sugar this season compared with 35.6 million tonne produced in the 2016-17 (Apr-Mar) season.
NCDEX cotton oilcake recovers on bargain buying.
Futures contracts of cottonseed oilcake on the NCDEX recovered due to increased buying after prices hit a 17-month low of 1,845 rupees per 100 kg on Thursday. The most-active June contract was up 1.8% from the previous close. Gains in cotton futures on the MCX also contributed to the rise. The May contract traded up 1.6%. Cottonseed oilcake, a derivative of cotton, is used as animal feed. In Akola, Maharashtra, the benchmark market, cottonseed oilcake was sold at 1,900 rupees per 100 kg, while in Kadi, Gujarat, the commodity was sold at 1,960 rupees, both unchanged from the previous day.
Govt reallocates quota for import of 23,798 tonne duty-free raw sugar.
The Directorate General of Foreign Trade has reallocated quota for the import of 23,798 tonne raw sugar for mills in the south and west zones. The Directorate General of Foreign Trade had earlier allotted a quota of 9,858 tonne raw sugar to NCS Sugar.