Wheat

Delhi wheat prices fall as new crop arrivals start.

Recent rains in north India boost hopes of record wheat production.

Wheat prices rise in Indore, Rajkot as govt buys start.

Japan to import 577 tonnes feed wheat via tender.

Madhya Pradesh sent 5,000 quintals of substandard wheat to Guna for BPL families under PDS.

Debut for Black Sea wheat derivatives contract.

Recent rains in north India are likely to benefit the wheat crop and improve its yield in most regions, while hail in isolated places in the North may hit the output of Chana and mustard. Rainfall is really good for the crop because after rainfall, temperatures have gone down which are very helpful for standing wheat crop and low temperatures are helping the grain-filling. Rains would benefit the late-sown wheat crop and improve the quality of the grain.

Wheat prices rose in key wholesale markets of Madhya Pradesh and Gujarat as procurement by the government started and supplies in the market were low. Centre has asked Madhya Pradesh, Gujarat and Rajasthan to start procurement operations earlier than the usual date of April1 due to high supplies and weak prices. Govt purchases prices rise above the MSP in most of these markets. About 3,000-4,000 bags (1bag=100kg) arrived in the market down from 5,000-6,000 bags. In Rajkot, Gujarat, the grain was up from last days. Prices of the grain remained unchanged in Kota, Rajasthan.

Japan would import 577 tonnes of feed-quality wheat for livestock use, via a simultaneous buy and sell (SBS) auction. Ministry had sought 120,000 tonnes of feed wheat to be loaded by June 30 and arrive in Japan by Aug. 31 in the tender.

Over 5,000 quintals of substandard wheat mixed with stone, sand grit and mud has been sent to Guna in Madhya Pradesh for distribution among below poverty line (BPL) families through the public distribution system. This wheat is not worth human consumption as pests have also infested it and wheat has been sent to Guna from Jabalpur which stored in a government warehouse. (Source: India today)

Agricultural traders and investors are looking for the debut of a new derivative product that will allow them to bet on the benchmark price of Black Sea wheat. Russia became the leading exporter of wheat last year. Russia, Kazakhstan and Ukraine, collectively known as the Black Sea region among grain traders which accounted for just under a third of global wheat exports in the 2015-16 crop season. Grain brokers have started to offer over the counter Black Sea derivative contracts based on the Russian wheat benchmark shipped out of the Novorossiysk port. The first derivative deal based on Black Sea wheat prices from S&P Global Platts, the commodities pricing agency was traded last week.

Indian wheat imports to remain rapid, despite near-record crop hopes.

Saudi Arabia tenders to buy 720,000 tonnes wheat.

Under govt’s last open market sale for 2016-17 (April-March), the average price of wheat in Delhi fell in this week’s tender in which govt sold around 16,000 tonne of wheat in Delhi. Average price of the food grain fell because of anticipation that demand might shift to the new crop, which is expected to start arriving in Delhi next month. Arrivals of the new crop have already started in some parts of Madhya Pradesh and are likely to peak across the country in the beginning of April. Total quantity of wheat offered by the govt through open market sales in the country in March was at 85,600 tonne, while the actual sale was of 74,350 tonne. Wheat stocks in the govt’s central pool at a multi-year low of 11.55 million tonne as of Feb 1, 2017, compared to 20.34 million tonne a year ago.

Prices of wheat fell in both spot and futures markets as supplies across the country are rising and demand from bulk buyers is weak. In Indore, new crop arrivals had started last month, supplies are rising each day and prices are getting lower. About 8,000-10,000 bags (1bag=100kg) of wheat arrived in Indore, up from 7,000-8,000 bags. To support falling prices, Madhya Pradesh govt will start procuring wheat from farmers at a MSP from March15.

Hailstorm in several villages of Bhiwani district damaged mustard and wheat crops. Hailstorm in Kharak, Bamla, Purnapura, Nangal, Sanga, Kont, Norangabad, Umrawat and several other villages of the district. Mustard crop, which is at the ripening stage, had suffered maximum damage. Entire field of mustard, which was ready for harvesting, has been damaged by the hail. The pods were severed due to the hailstorm, even the wheat crop was flattened due to inclement weather.

Indian wheat imports will remain at the current elevated level next season, despite a near record harvest, with stocks depleted after years of production deficit. Indian wheat imports for 2017-18 at 5 million tonnes, unchanged from 2016-17, even though domestic production is seen jumping by 8 million tonnes. Indian wheat production is set to hit near record levels, of 95 million tonnes, increase in production is the result of record large sowings, of 31.8 million hectares. Import of wheat in the forecast year 2017-18 will continue to sustain the consumption demand, contain domestic prices and help government to augment the declining wheat stocks. (Source : Agrimoney )

Saudi Arabia’s main state wheat buying agency, Saudi Grains Organization, has issued an international tender to purchase 720,000 tonnes of hard wheat. At least part of the purchase could be sourced in Germany and ship loadings have shown large shipments of German wheat moving to Saudi Arabia which seem to indicate parts of previous tenders were supplied with German wheat. But Poland has also emerged as a major exporter recently and so it is not easy to assess the likely origins which will be selected.

Wheat open market tender average price falls in Delhi.

Wheat prices fall in spot, futures as supplies increase.