Russian wheat exports between the start of the season on July 1and August 29 were 8.17 million mt, up 60% on the year. Higher-than-usual temperatures and dry weather over May-June resulted in an earlier-than-usual harvest and exports. Meanwhile, this weather also hit production. Rain during the harvest, especially in central regions reduced the quality. Russian wheat production for this marketing year is expected to be about 68 million-70 million mt, down from a record high of 85 million mt last marketing year. Wheat production is also expected to be lower in other producing regions, notably the EU, Canada and Australia, supporting wheat prices and incentivizing producers to take advantage by exporting. Deep sea port 12.5% protein wheat prompt loading was assessed at $225/mt Friday compared with $180.50/mt a year earlier, but $1.75 lower on the week and off the 42-month high of $234.50/mt hit on August 8.
Kharif maize area unch on yr at 7.7 mln ha.
Maize acreage in India was unchanged on year at 7.7 mln ha. The Centre has hiked minimum support price for maize to 1,700 rupees per 100 kg for kharif marketing year starting October from 1,425 rupees in the previous year, which encouraged farmers to sow more in the key producing states of Madhya Pradesh, Karnataka, Rajasthan and Gujarat. However, in some states, the acreage was down because of patchy distribution of rains. During Jun 1-Sep 2, the country received 683.2 mm rains, 6% below the normal weighted average of 728.3 mm.
Ukraine’s maize crop to top 30 mln t on record yield.
Ukraine’s maize production will jump this year to just over 30 million tonnes, supported by record yields after crops benefitted from good growing weather. kraine, one of the world’s largest grain growers and exporters, is expected to produce 30.28 million tonnes of maize (corn) this year, up 23 percent from 24.67 million in 2017 and 12 percent above the average of the past five years. The bumper volume would reflect a projected record yield of 6.69 tonnes per hectare, up from 5.51 tonnes per hectare last year.
Madhya Pradesh to sell 18,000 tn poor quality pulses
The Madhya Pradesh government will sell 18,000 tn poor and non-fair average quality of chana, masur, and mustard procured in May-Jun. The government is selling the commodity to pay farmers the minimum support price in full. The government was unable to pay the farmers as agencies procured some of the commodities which were of non-fair average quality and were also damaged. The government has, therefore, ordered to auction these pulses and oilseeds and release the pending dues to the farmers latest by Aug 27 into their bank accounts. The total quantity of chana, masur, and mustard procured by the government in 2018-19 is 1.97 mln tn.
NCDEX chana up as govt restricts peas imports
Futures contracts of chana erased earlier losses and rose slightly on NCDEX as the government restricted import of peas. September contract chana on NCDEX was up 9 rupees at 3,900 rupees per 100 kg. Peas are largely used as substitute for chana. The chana contract had hit a seven-week low of 3,754 rupees. The government had lifted the 100,000-tn import cap on peas that was in place till Sep 30, following the order of Madras High Court. Chana prices in Delhi were up 50 rupees at 4,225 rupees per 100 kg, Vikas Gupta, local pulses trader said adding that if NAFED sells chana below 4,000 rupees it will create selling pressure.
Potato prices, arrivals flat in Delhi; Mumbai closed
In Delhi, the benchmark market for potato, prices and arrivals remained unchanged. At Azadpur market in Delhi, prices were unchanged at 1,000-1,400 rupees per 100 kg, and arrivals were steady at 115 trucks, each carrying 15-20 tn of the vegetable. At Mumbai’s Vashi market, prices and arrivals were unavailable as the market was shut on account of Janmashtami.
Onion quoted tad lower in Delhi on rise in arrivals
Prices of onion in the key markets of Delhi were slightly down due to an increase in arrivals. At Azadpur, the benchmark market in Delhi, onion was quoted at 550-600 rupees per 100 kg, down 10-20 rupees. Arrivals were pegged at 100 trucks, each carrying 15-20 tn of the vegetable. The key markets of Lasalgaon and Pimpalgaon in Maharashtra remained closed on account of Janmashtami.
Barley up in Jaipur on demand from poultry sector
Despite concerns over quality, barley prices were up in Jaipur because of strong demand from poultry feed sector. In Jaipur, the benchmark market, the coarse grain was sold at 1,570 rupees per 100 kg, up 10 rupees. Very low supplies in the market and demand from stockists also supported the grain. Prices are likely to rise further as stocks held by farmers are nearly over and new crop arrivals are likely to commence only from March. Arrivals were estimated at 1-2 bags (1 bag = 85 kg), compared with 2-3 bags.
Punjab 2018 kharif rice crop seen 13.4 mln tn, up 10%
Punjab’s output of rice in 2018-19 (Jul-Jun) kharif season is likely to rise 10% on year to 13.36 mln tn due to a rise in acreage and yield. Punjab is a major rice producing state. Cotton output in the state during the season is seen falling 18% on year to 1.30 mln bales (1 bale = 170 kg). Maize output is seen down 14% on year at 450,000 tn.The state has pegged total food grain output at 13.82 mln tn, compared with 12.69 mln tn last year. Total output of oilseeds is seen at 5,400 tn, against 5,600 tn the previous year.
ICRA says rice sales to China may support India’s ailing export mkt.
China’s interest in buying non-basmati rice from India is likely to lend some support to the export industry. In June, China had allowed the import of rice from 19 mills in India. This followed a trade delegation from India visiting China to explore export opportunities for rice, sugar, and soy products to the country. A substantial increase in support price by the Centre in July, and a hike in duty for import of non-basmati rice by Bangladesh to 28% from 2% effective June, are expected to have negatively affected exports of the food grain.
Andhra 2018 kharif paddy crop seen 7.6 mln tn, up 1%
Paddy output in Andhra Pradesh in the 2018-19 (Jul-Jun) kharif season is seen rising 1% on year to 7.6 mln tn due to a marginal rise in acreage.
Barley up in Jaipur on demand from poultry sector.
Despite concerns over quality, barley prices were up in Jaipur because of strong demand from poultry feed sector. Very low supplies in the market and demand from stockists also supported the grain. Prices are likely to rise further as stocks held by farmers are nearly over and new crop arrivals are likely to commence only from March.
NCDEX chana up as govt restricts peas imports.
Futures contracts of chana erased earlier losses and rose slightly on NCDEX as the government restricted import of peas. September contract chana on NCDEX was up 9 rupees at 3,900 rupees per 100 kg. Peas are largely used as substitute for chana. The chana contract had hit a seven-week low of 3,754 rupees. The government had lifted the 100,000-tn import cap on peas that was in place till Sep 30, following the order of Madras High Court. Chana prices in Delhi were up 50 rupees at 4,225 rupees per 100 kg, Vikas Gupta, local pulses trader said adding that if NAFED sells chana below 4,000 rupees it will create selling pressure.
Maharashtra sees tur crop halving to 1 mln tn 2017-18.
Tur output in Maharashtra is estimated to nearly halve to 1.1 mln tn in 2017-18. Tur output in Maharashtra is estimated to nearly halve to 1.1 mln tn in 2017-18. Production of soybean is also pegged lower because of sufficient inventories and lower exports of the meal. Soybean output is estimated to fall 15.2% on year to 3.9 mln tn. Chana output in the state is estimated to fall to 1.8 mln tn, down 8.1% on year.
Lasalgaon onion flat as supply down, demand sluggish.
Prices of onion were steady in Lasalgaon, a key market in Maharashtra, as subdued demand from stockists offset gains from a fall in arrivals. In Lasalgaon, arrivals were pegged at 400 trucks, each carrying 15-20 tn of onion, down 50 trucks. Prices of onion were stable at 850-913 rupees per 100 kg.
New crop moong enters market, prices 25% below MSP on high moisture.
Arrivals of moong from the current kharif season have started in some parts of Maharashtra. Even at the higher end of the price range, the commodity is being sold at a whopping 25% discount to the minimum support price of 6,975 rupees per 100 kg for 2018-19. In Latur, a key market for pulses in Maharashtra, daily arrivals were at 2,000-2,500 bags (1 bag = 100 kg) in the last week, and it was sold at 4,200-5,200 rupees per 100 kg. Moisture levels in the new crop moong being sold were at 14-23%, compared with 16-18% a year ago. For procurement at minimum support price, the moisture content is fixed at 12%.
Kharif paddy area tad dn on yr at 35.7 mln ha.
Acreage under paddy crop across the country this kharif season was at 35.7 mln ha, down 0.7% on year. The area under paddy was, however, higher than the average 35.4 mln ha for the period. Also, the lag in acreage has reduced from 3% a fortnight ago. The slight fall in acreage can be attributed to lower sowing in key producing states of Assam, Bihar and Jharkhand, where weak monsoon rains hit planting. Paddy is a water-intensive crop and requires bountiful rains during sowing and transplantation of saplings from nursery to the fields. During Jun 1-Aug 26, the country received 633.1 mm rainfall, 7% below the normal weighted average of 678.1 mm, as per data from India Meteorological Department. Paddy sowing was also lower on year in Punjab at 3.04 mln ha as of Thursday. The Punjab government, along with rice millers, is working to create awareness among growers about pesticide-free rice. Rice millers have promised paddy growers in Punjab an additional 300-400 rupees per 100 kg if their produce is pesticide-free.
Punjab plans to cut pesticides use in basmati rice.
Basmati grown in Punjab this year is likely to witness a major reduction in use of pesticides and fungicides that lead to rejection of export consignments from India. Alarmed by hurdles in export of rice from India, the state government is reaching out to farmers through Gurugwaras, public meetings and social media to dissuade use of Acephate, Cabandazim, Thiamethoxam, Tricyclazole and Triazophos—chemicals responsible for higher residue level in rice.
China is set to import Indian basmati and non-basmati rice for the first time.
Beijing has already cleared 19 Indian rice companies to buy rice from. India exports 4 million tons of aromatic basmati rice a year and expects that to grow 5% this year with the opening of the new market. The country ships another 8.5 million tons of non-basmati rice to international markets.
Philippines set to purchase extra 132,000 T of rice.
The Philippines will import an additional 132,000 tonnes of rice to boost stocks in southern provinces, where prices have surged in recent weeks amid limited supply. The plan approved by regulators includes the “immediate procurement” of 32,000 tons of the staple grain. The National Food Authority (NFA), the country’s food security agency that buys most of the country’s import requirements, will issue import permits for the balance of 100,000 tons after the usual bidding process.