Sugar up in Delhi on good demand; steady in Mumbai.
Ram Gopal Yadav (8 years ago)

Prices of sugar in the key wholesale markets of Delhi were up due to improved demand as consumption has increased amid wedding season. In Delhi, the sweetener was sold up 5 rupees per 100 kg from previous close. In Mumbai, prices of sugar were unchanged amid thin trade. On the NCDEX, the most-active May contract was up 1.8%.

India no plans to allow extra sugar imports.
Ram Gopal Yadav (8 years ago)

India, the world biggest sugar consumer, has no plans to allow extra imports of the sweetener as stocks held in mills will suffice, Food Minister Ram Vilas Paswan said on Thursday. Last month, the government allowed imports of half a million tonnes of duty-free raw sugar, as a drought cut output below consumption for the first time in seven years. Traders were speculating that the government could soon be forced to allow imports of an extra 500,000 to 1 million tonnes to meet local demand, estimated at 24-25 million tonnes a year. Local sugar prices are steady around 38,000 rupees ($590.38) a tonne despite an uptick in demand during the summer months when sales of ice cream and cold drinks soar, potentially boosting demand for sugar.

UP government plans to bring congruency between sugar cane and sugar prices.
Ram Gopal Yadav (8 years ago)

The issue about the sugar sector currently buzzing in the market is that there is no congruency between the sugar cane and sugar prices in the state of Uttar Pradesh. Market analysts and top honchos of sugar companies believe that the UP government is likely to fix the issue of sugarcane prices soon. Upcoming Sugar year starting on October 1 is likely to see the well balance of production and consumption of sugar. In current trading session, the sugar stocks are trading mostly higher. Dwarikesh sugar is trading higher by 1.05%. Dhampur Sugar stock is trading higher by 0.13%. Uttam Sugar is trading higher by 0.08%. Balrampur Chini stock is trading higher by 1.2%.

Raw sugar prices weaken ahead of Brazil harvest data.
Ram Gopal Yadav (8 years ago)

Raw sugar futures on ICE were slightly lower on Thursday in a modest retreat after rising for three straight sessions as the market awaited the release of Brazilian harvest data. July raw sugar fell 0.08 cent, or 0.5 percent, to 15.76 cents per lb. (1LB = 0.4535924 KG). The front month contract had risen by 2.6 percent on Wednesday. harvest data for centre-south Brazil was due to be issued by growers’ association UNICA on Thursday covering the second half of April. crush was expected to have been 26 million tonnes, down 28 percent, year-on-year.

Government considering raising paddy MSP by Rs 80 for FY18.
Ram Gopal Yadav (8 years ago)

The government is considering raising the minimum support price (MSP) of paddy by Rs 80 per quintal to Rs 1,550 for the upcoming 2017-18 crop year starting from July. The ministry has proposed Rs 80 per quintal increase in the paddy MSP for 2017-18 crop year. The suggested MSP for the common grade is Rs 1,550 and that of the ‘A’ grade Rs 1,590. The price increase proposed for paddy, however, is slightly higher than the Rs 60 hike effected during the 2016- 17 crop year. Paddy is grown in both kharif (summer) and rabi (winter) seasons. But much of the paddy output comes from the kharif crop, sowing of which normally begins with the onset of the Southwest Monsoon.

WASDE WHEAT MAY OUTLOOK
Ram Gopal Yadav (8 years ago)

U.S. wheat supplies for 2017/18 are projected down 9 percent from 2016/17 on lower production, which is partially offset by higher beginning stocks. All wheat production for 2017/18 is projected at 1,820 million bushels, down nearly 500 million bushels from the prior year. The year-to-year decline is due to a sharp reduction in planted area and projected lower yields. The all wheat yield is projected at 47.2 bushels per acre, down 10 percent from last year’s record. The first survey-based forecast for 2017/18 winter wheat production is down sharply with the lowest harvested area in more than a century and lower yields. Winter wheat benefited from diminishing drought conditions in the Plains and Midwest. However, a late April snow storm affected large portions of the Hard-Red Winter wheat belt, especially western Kansas. Combined spring wheat and Durum production for 2017/18 is projected to decline 10 percent on lower area and a return to trend yields. Total use for 2017/18 is projected down 2 percent on lower exports and feed and residual use. Exports are projected at 1.0 billion bushels, down 35 million from the previous year’s revised level but above the five-year average. The EU is expected to regain export market share following last year’s small crop and quality problems. U.S. feed and residual use is projected down 20 million bushels on lower supplies. U.S. ending stocks are projected to decline 245 million bushels to 914 million, the lowest in three years. The season-average farm price is projected at $3.85 to $4.65 per bushel. The mid-point of this range is up $0.35 from the previous year’s low level. Global wheat supplies are projected to decline fractionally as higher beginning stocks are more than offset by a production decline following last year’s record. Total wheat production is projected at 737.8 million tons, the second highest total on record. Global wheat consumption is projected down slightly from last year’s record with reduced feed and residual usage partially offset by increased food use. Global imports are expected to be a record for the fifth consecutive year. Global ending stocks are projected at a record 258.3 million tons, up 2.9 million from 2016/17.

WASDE CORN MAY OUTLOOK
Ram Gopal Yadav (8 years ago)

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.

Brazil Jan-Mar container sugar exports up 14% on year.
Ram Gopal Yadav (8 years ago)

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.

MCX cotton down on high output view.
Ram Gopal Yadav (8 years ago)

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.

NCDEX coriander down on profit booking, high stocks.
Ram Gopal Yadav (8 years ago)

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%.

Coriander prices up in Rajasthan as output seen low.
Ram Gopal Yadav (8 years ago)

Prices of coriander rose in the spot markets of Rajasthan due to expectations of low output this year. India coriander output in 2016-17 (Oct-Sep) is seen at around 9 million bags (1bag=40kg), compared with 10 million bags last year. In the benchmark market of Kota, the Badami variety and the Eagle variety both up 100 rupees from previous close. Arrivals in Kota and Ramganj were pegged at 4,800 bags (1bag=40kg) up 1,300 bags.

India Wheat flat as govt ups output estimate.
Ram Gopal Yadav (8 years ago)

Wheat futures on the National Commodity and Derivatives Exchange ended largely unchanged as higher supplies in physical markets were offset by demand from flour millers ahead of Ramzan. The most-active June contract on the NCDEX ended up 0.06% from the previous close. The overall sentiment was bearish as the government raised this year wheat production estimate to a record prominent level. In benchmark Indore market, mill quality wheat traded steady. In the Delhi market wheat prices were a tad up 5 rupees from previous close.