Global consumption of barley in the 2018/19 season will still exceed its production in the top growing countries. It is worth pointing out that export prices at the start of the new season are appreciably higher than last year, even though the harvest is in full swing in some of the major growers. At the moment, prices are supported not only by all-time low barley carryovers but also by concerns about the size of the new crop. Thus, the world trade volume in the current season will significantly depend on export potential of key exporting countries, in particular major players such as Ukraine and Russia.
NCDEX chana hits 7-month high as miller demand rises.
August contract of chana on NCDEX hit a seven-month high of 4,390 rupees per 100 kg as demand from dal millers improved amid limited supply. The August contract of chana was up 49 rupees at 4,363 rupees per 100 kg. In benchmark Delhi market, prices of chana rose by 50 rupees to 4,650 rupees per 100 kg. Demand is expected to increase due to seasonal factors.
Canada agency lowers 2018-19 masur, peas output view as acreage down.
Canada’s farm agency has lowered its estimates for the output of masur and peas in 2018-19 (Aug-Jul) because of a fall in the area under the crops in the country. Production of masur in 2018-19 to fall to 2.38 mln tn compared with 2.5 mln tn, estimated in its June report. Area harvested under masur has been revised lower to 1.50 mln ha from 1.62 mln ha, the report stated. The output estimate for peas has been revised to 3.6 mln tn in the July forecast from 3.85 mln tn. Despite the fall in output, the agency has kept the price forecast for peas and masur unchanged from its June view at $220-$250 per tn and $420-$450 per tn, respectively, due to higher carry-over stocks. Average price for all grades (lentils or masur) and types is forecast to fall from 2017-18 due to Canadian and world supply. There is an expectation that import demand in the Indian subcontinent will continue to be similar to 2017-18. On the export front, shipments of masur and peas in 2018-19 from Canada are expected to remain steady because the July forecast report says an expected sharp fall in demand from India may be partly offset by record imports from China and the US. Canada agency Production estimate for chickpeas or chana has been revised higher in 2018-19 to 335,000 tn from 255,000 tn, as estimated in June. For 2018-19, the area seeded more than doubled from 2017-18 due to higher farm-gate prices received in the previous two years. Saskatchewan (the largest pulses growing region in Canada) is expected to account for 84% of the chickpea area. India used to be the largest importer of peas and masur from Canada but, with the government’s imposition of higher import duties in 2017, sourcing of the pulses from the latter have declined.
Delhi chana up on improved demand from millers.
Price of chana in Delhi rose due to improved demand from dal millers amid low arrivals. In Delhi, the benchmark market, chana was sold 50 rupees higher at 4,650 rupees per 100 kg. Arrivals of chana in Delhi were unchanged at 300 tn, but were less than the daily average of 525-600 tn. In Akola, prices were unchanged at 4,300 rupees per 100 kg. The August contract of chana on NCDEX fell 1.07% to 4,332 rupees per 100 kg.
European wheat rises on rally in Chicago.
European wheat rose to its highest in more than a week, supported by a rally in Chicago and a lack of sellers amid uncertainty about the European harvest. December milling wheat, the most active position on Paris-based Euronext, unofficially closed up 3 euros, or 1.6 percent, at 189 euros ($220.36), its highest since July 6. Lack of selling interest, amid uncertainty over the size and quality of Europe’s harvest, continued to support French prices. The continuing French wheat harvest had reached northerly zones as a hot, dry spell favoured field work.
Onion exporters to get 5% incentive under MEIS.
In a bid to boost onion export, the Centre has decided to give 5% benefit of Merchandise Exports from India Scheme (MEIS) to onion exporters. The scheme has come into effect from July 13 and will continue till January 12, 2019, says a notification issued by the Directorate General of Foreign Trade. Farmers, traders and the agriculture Produce Market Committee (APMC) at Lasalgaon had been demanding the incentive for onion exports. The Maharashtra State Agriculture Marketing Board had also sent a proposal to the Centre around two months ago, seeking 5% incentive for onion export to stop drop in onion prices. “The move will benefit onion exporters. The maximum onion export from the country is from Nashik district. Hence, it will benefit onion exporters in our district in a big way. It will also help stabilise onion prices, which will help the farmers.
Mumbai Tomato shoots to Rs 48 per kg leaving consumers bitter.
Adding weight to the burden of food inflation, the retail price of tomato has been steadily climbing over the last two weeks. The fruit is now selling for Rs 40-48 per kg in parts of the city. “There is no dearth of good quality tomatoes that would point to a shortage. The fruit is large, red and juicy. It is difficult to see why the cost has increased from the average Rs 15-18 to Rs 40-45. Wholesale prices range from Rs 8 for average produce to Rs 20-25 for best quality tomatoes. The crop shortage in Narayangaon is responsible for this. Milking the situation, retailers are charging double the wholesale price claiming losses due to spoilage by rain. Tomato sold for Rs 40 in Lokhandwala Complex, Andheri, and JN Road, Mulund, and Rs 48 in Breach Candy, Matunga and Chembur. At Churchway in Borivli’s IC Colony, the price was Rs 50.
Vegetable prices shoot up due to monsoon.
Prices of vegetables are set to burn a hole in your pocket as the monsoon season is leading to a hike in wholesale rates. Tomatoes are the worst hit as the local supply has run dry. The price shot up from Rs 10-20 per kg to Rs 30-40 as tomatoes are being brought from Himachal, Uttarakhand and Bangalore. The wholesale rates varies from Rs 30-40 per kg. Due to the rains, the supply often gets disrupted. The prices are likely to rise with monsoon season. In the retail market, a kilogram of tomato can cost Rs 35-60 depending on the variety. However, prices of onions are rising slowly. The wholesale rate for onion was recorded as Rs 25-35 per kg, which has increased by Rs 5 per kg in last one month. Supply of onions is not much interrupted. Mostly the onions are being brought from Maharashtra and Rajasthan.The Maharashtra onions, which comes from Nasik, is the costlier one due to the quality and distance.
Chana prices increasing as demand for Besan in monsoon.
The prices of gram are continuing steadily due to lower stock prices in the market. For the past one month, the price of gram has risen about Rs 1,000. The demand for gram flour is rising due to increased demand for gram flour in the monsoon. After the increase in gram, the market price has more than the minimum support price. The MSP government has fixed Rs 4,400 per quintal for the Rabi season of gram in the crop year 2017-18. The demand of consumers is increasing in demand due to increase in prices of vegetables. The demand for mills remained, whereas the pipeline is empty because the government agencies have a large stock of gram.
NCDEX barley down on profit booking post 15-month high.
The most active August contract of barley was down on the NCDEX due to profit booking after prices hit a 15-month high of 1,602 rupees per 100 kg. On the NCDEX, the August contract was at 1,591 rupees per 100 kg, down 0.2%. A fall in prices of the grain in the benchmark spot market of Jaipur, also weighed on the contracts. Prices of barley were down in Jaipur due to weak demand from malt industries following concern over the quality of domestic stocks.
Agrimet warns of paddy blast disease in Madhya Pradesh.
IMD’s Agrimet has warned that present weather conditions in Madhya Pradesh are highly favourable for incidence of blast disease in paddy. Blast and brown spot on the paddy leaves indicate attack of blast disease, which needs to be addressed at earliest to avoid any damage. Farmers have been advised to keep an eye and spray pesticides if the infestation is spotted after spells of rain. Sowing of paddy in Madhya Pradesh, one of the largest growers, was at 869,000 ha, up 35% on year.
Source says Centre plans to distribute 2 kg pulses/family under PDS.
The Centre plans to distribute 2 kg of pulses per household under the public distribution system. The government is planning to provide pulses to the beneficiaries under the public distribution system in a bid to dispose buffer stock.
Source says 11,000 tn urad from Myanmar reaches Chennai, Mumbai.
About 11,000 tn of urad have arrived at Indian ports from Myanmar in a span of two-three days. The price of the pulse is in the range of $440-$470 per tn on cost and freight basis for the superior quality while the fair-average quality costs $330-$380 per tn. Of the total 11,000 tn imported in the last two-three days, 3,600 tn has landed at Mumbai’s Nhava Sheva port and the remaining at the Chennai port.
Tur down in Kalaburagi on weak demand, steady in Akola.
Prices of tur fell in Kalaburagi due to weak demand from dal millers. In Kalaburagi, prices were at 3,700-3,900 rupees, down by 25 rupees. Arrivals were steady at 3,000 bags. In Akola, tur was sold steady at 4,000-4,050 rupees per 100 kg and arrivals were also unchanged at 1,000-1,200 bags.
The area under the tur crop across the country down
The area under the tur crop across the country down 2% on year at 2.2 mln ha. For the week ended Jul 4, the area under tur was down 20% on year. The recover in acreage in the week ended Wednesday was due to conducive rains. The acreage in key growing states Maharashtra, Madhya Pradesh, and Telangana increased, while that in Karnataka was lower. In Karnataka, the area under tur was down 22% on year at 553,000 ha.
The area under moong crop across the country down
The area under moong crop across the country was down 5.5% on year at 1.75 mln ha. In Rajasthan, the largest producer of moong, the acreage was down 25.2% on year at 873,100 ha. Sowing under the pulse has been lower this year due to erratic rainfall in key growing areas in the state.
Egypt to import 500,000-700,000 t rice paddy over next year.
Egypt expects to import between 500,000 and 700,000 tonnes of rice paddy over the next year, after slashing its own cultivation earlier this year.
China to import Thailand rice under MoU.
A major rice importer in China has signed a Memorandum of Understanding (MoU) with Thailand. Under the agreement, a minimum of 10,000 tonnes of Thai Kor Khor 43 rice will be sold in China via both traditional and online platforms. The rice will be sold to the Chinese company at 12,000 THB per tonne. It is expected that up to 13,000 tonnes of Kor Khor 43 rice will have been harvested by the end of next month. The rice has a low sugar content compared to other rice strains and produces a pleasant scent when cooked.
Wheat up on increased offtake by flour mills.
Wheat prices firmed up by Rs 20 per quintal at the wholesale grains market due to increased offtake by flour mills. However, other grains held steady in thin trade. increased offtake by flour mills against restricted arrivals from producing regions mainly led to rise in wheat prices.
Drought, hail hurt wheat yields in Kansas.
Producers and analysts say the drought-starved Kansas wheat crop that a few weeks ago appeared better than expected, was now average to disappointing after some areas were pummeled by hail.