Japan lifts temporary ban on Canadian wheat. Japan buys 62,957 tonnes of Canadian food wheat via tender
Ukraine wheat harvest, exports to fall on drought.
UkrAgroConsult cut its forecast for Ukraine’s 2018/19 crop year wheat harvest and exports due to a severe drought across the country during spring and the first half of summer. The agriculture consultancy reduced its wheat harvest forecast by 3.1 percent to 24.7 million tonnes, and exports to 15.5 million tonnes from 16 million tonnes forecast in June.
Rapeseed oil production in Russia at a three-year high.
Russian crushers produced 32.5 KMT of rapeseed oil in May 2018 against 32.2 KMT in April 2018 and 23 KMT in May 2017. Even towards the end of the season, the monthly volumes of rapeseed crushing remain steadily higher than a year ago. Overall, rapeseed oil production increased almost 21% in July-May 2017/18, to 351.2 KMT versus 290.6 KMT in the same period last year. Owing to a heavy rapeseed crop in 2017, this season’s rapeseed oil output is still at a three-year high.
Govt source says mills exported around 350,000 tn sugar so far.
Mills across the country have exported around 350,000 tn of sugar so far in the ongoing season started October. Around 350,000 tn has already crossed the border. Total export contracts are for around 400,000 tn so far. So, another 50,000 tn is also in the process. The sweetener has been shipped to west Asia, Sri Lanka, and Nepal at a freight-on-board price of nearly $320-$340 per tn. Total sugar exports from the country in 2017-18 (Oct-Sep) are expected to be around 500,000 tn, which is only a fourth of the quantity allocated by the government for the season.
Punjab to pay 5,000 rupee/ha subsidy on maize farm input this kharif.
In order to encourage farmers to grow maize instead of paddy and check the fall in ground water level, the Punjab government has announced a subsidy on farm inputs for the coarse grain in 2018-19 (Jul-Jun) kharif season. The state government has also announced a subsidy of 120 rupees per kg on purchase of maize seeds. The state government is promoting cultivation of maize in place of paddy under the crop diversification scheme. Groundwater level in 32% area of the state has fallen below 20 mtr from 2 mtr in 2000.
Sources say govt inspects sugar cos on sale quota, buffer compliance.
The government has carried out physical inspection in some sugar mills in Uttar Pradesh and Maharashtra to ensure their compliance to the Centres orders of quota on domestic sale, floor price of the sweetener, and creation of a buffer stock. The government had last week sent inspection notices to mills in states, including Uttar Pradesh and Maharashtra to check that they are following orders. In Uttar Pradesh, inspection notices were sent to Modi Sugar Mills, Bajaj Hindusthan Sugar, Dhampur Sugar Mills, Mawana Sugars, DCM Shriram.
ICRA says cane fair price hike may affect margins of sugar mills.
The Centres move to increase fair and remunerative price of sugarcane to 275 rupees per 100 kg for 2018-19 (Oct-Sep) is likely to raise the cost of sugar production and affect margins of mills. While the effective hike is just 2.5% higher on year, “this is likely to result in margin pressures for sugar mills as well as the increase in cane arrears. Cane fair price in 2018-19 will be linked to a basic recovery rate of 10%.
India Sugar down in north India on poor demand, steady in Kolhapur.
Prices of sugar fell in the key wholesale markets of north India due to poor demand from bulk buyers. Medium-grade sugar was sold at 3,530 rupees per 100 kg in Delhi and at 3,495 rupees in Muzaffarnagar, both down 10 rupees from the previous close
Sugarcane acreage up 1.6% on year, but unchanged on week.
Sugarcane acreage in the country was at 5.05 mln ha, slightly higher than 4.97 mln ha a year ago, but unchanged from a week ago. In Uttar Pradesh, which has emerged as the largest sugar producer in the past two years, cane acreage was the highest at 2.31 mln ha, compared with 2.26 mln ha a year ago. In Maharashtra, another major grower, the area under sugarcane was 1.3% higher on year at 949,000 ha, the data showed. It was also unchanged from a week ago.
Tur acreage down 10.2% on yr at 2.86 mln ha.
Area under tur across the country was down 10.2% on year at 2.86 mln ha. Many farmers in Madhya Pradesh, one of the largest growers of tur, have shifted to paddy this year as rains have been good and due to attractive returns.
Urad acreage down 29% on year at 2.22 mln ha.
Area under urad crop this kharif season was down nearly 29% on year at 2.22 mln ha. In Madhya Pradesh, the largest grower, area under urad was down 30.3% on year at 1.13 mln ha as farmers shifted to paddy.
Moong acreage down 1.8% YoY at 2.34 mln ha.
Acreage under moong across the country was down 1.8% on year at 2.34 mln ha. However, week-on-week the area under the crop has jumped over 33%. This year, sowing of moong was delayed due to the pattern of monsoon rains in Rajasthan, the largest grower of the crop. In Rajasthan, area under moong is up 8.1% on year at 1.3 mln ha so far. Till Jul 11, moong acreage in the state was down over 25% on year.
Soybean acreage up 11% on yr at 9.4 mln ha.
Soybean acreage across the country was 9.35 mln ha, up 11% from the year-ago period. Rains being bountiful in key growing regions of Madhya Pradesh, Maharashtra, Rajasthan, sowing of the oilseed has increased. In Madhya Pradesh, soybean acreage was 11% higher on year at 4.44 mln ha as planting gained pace because the ideal sowing period ends by the third week of July. Planting of the oilseed is expected to be higher from a year ago due to higher minimum support price and adequate rains in major growing areas.
Kharif paddy area down 12% YoY at 15.7 mln ha.
Farmers across the country have sown paddy across 15.65 mln ha this kharif season, down 12.4% on year. Paddy acreage was also below the average area of 17.94 mln ha for the period. The fall in acreage can be attributed to lower planting in top growers Uttar Pradesh, West Bengal, Odisha and Punjab. Acreage in Punjab has declined as the state government is encouraging farmers to shift to coarse grains like maize from more water-intensive crops like paddy to check the fall in groundwater level.
Kharif maize area flat on year at 6.1 mln ha.
Maize sowing in the country has gained momentum, with total area under the coarse grain rising to 6.13 mln ha from 5.11 mln ha as on Jul 12. Maize acreage in the country was largely unchanged from the year-ago period and was only a tad lower from the normal of 6.15 mln ha, based on the average of the past five years. A pick-up in rainfall across the country has boosted planting of maize.
Pakisatn Rice worth $ 2.073 bln exported in last year.
About 4.106 million tons of rice worth US$ 2.073 billion were exported during 12 months of last financial year as compared the exports of 3.523 million tons valuing US$ 1.606 billion of the corresponding period of last years. The exports of the above-mentioned commodity had registered 26.78 per cent growth during the period under review.
Scanty rain hits rice farmers in Bihar, UP.
Despite prediction of normal monsoon this year, things are not looking good as far as eastern and North-eastern parts of the country are concerned. Several parts of Bihar and Uttar Pradesh, two main States of paddy crop, are facing drought-like situation due to shortage of rainfall. According to Agriculture Ministry data, compared to last year rice has been sown in 68 per cent less area in Bihar while UP has witnessed 35 per cent less area sowing under rice cultivation till date. Rain deficiency in Bihar is at 49 per cent whereas UP has recorded 48 per cent less rainfall in Eastern and Western parts.
Source says FCI sold 74,150 tn wheat in 1st open mkt sale of 2018-19.
Food Corp of India sold 74,150 tn wheat in the first round of auction under the Open Market Sales Scheme of 2018-19 (Apr-Mar). In the first round of auction for the year, the agency offered 1.48 mln tn of the food grain. Usually response to sales tender under the Open Market Sale Scheme remains subdued during Jul-Aug and peaks during the lean supply season Sep-Oct. Last year, Food Corp of India had sold only 20,000-30,000 tn wheat through its first auction under the scheme.
Kazakhstan grain stocks 9% higher last year’s.
Growers of all types held 5.19 MMT of cereals and pulses as of July 1, 2018, i.e. 8.6% more than on the same date a year ago (4.78 MMT). Wheat inventories as of July 1, 2018 were up 9.7% year-on-year at 4.58 MMT, including 4.15 MMT of milling wheat, 0.34 MMT of feed wheat and 0.1 MMT of wheat for seed. As of the reporting date, barley stocks totaled 306.4 KMT that is down 5% on the year, while those of corn were 28.9 KMT, rice – 41 KMT, rye – 9.7 KMT, oats – 64.6 KMT, buckwheat – 46.1 KMT, millet – 2.1 KMT.
Wheat exports from Ukraine remained close to record in MY 2017/18.
June, the last month of MY 2017/18, traditionally saw a slowdown in wheat exports from Ukraine. 842 KMT was shipped abroad, or 17% less than in May (1 MMT) but 34% more than in June 2017 (627 KMT). The wheat export results of MY 2017/18 were slightly lower than in the previous season. Roughly 17.2 MMT of wheat was supplied to foreign markets that is just 1.6% below last season’s record of 17.5 MMT.