Centre Worried Over Continuing Strength In Edible Oil

Mumbai: Mr T. Nand Kumar, Secretary, Ministry of Food and Public Distribution, has summoned industry and trade associations relating to the edible oil sector for a meeting to be held in New Delhi on July 2. Edible oils have a fairly high weightage in the consumer price index. It is clear the Government is worried over maintaining strength in the edible oil market. World prices have soared and domestic production is below expectation. Progressive reductions in customs duty in recent months, especially in palm group of oils, have not helped contain domestic prices as globally the market has been near-record high in the wake of demand from the biodiesel sector.
Across edible oils soyabean, palm, rapeseed and sun the duty could be uniformly brought to 45 per cent. More important, if the Government seeks quick relief from high prices, customs duty on both crude and refined oils should be unified and permitted for import at the same rate of duty. The time lag (window of speculative opportunity) between import of crude oil and marketing of refined oils should be closed. Demand at the lower end of the market is drying up as edible oils have become unaffordable. A sure way to support poor consumers is to quickly restart supply of edible oils through the public distribution system (PDS). The Government's reluctance is intriguing. The domestic oilseed crop prospects will become clear not before mid-August.

Bengal Asked To Establish Body For Vetting EOIs By Tea Cos

Jalpaiguri: Pointing out that some 45 tea gardens in West Bengal have been chose for loan/subsidy disbursement till date (out of 81 applications received from tea companies so far) under the Government's Special Purpose Tea Fund (SPTF) scheme for productivity enhancement in the tea sector, Mr Jairam Ramesh, Union Minister of State for Commerce & Industry, said here that negotiations will be held soon with the West Bengal Government to put in place a machinery to evaluate EOIs pouring in from various tea companies for SPTF. The Minister said it has been decided to effect a ten-fold increase in allocation for social welfare measures in tea gardens (water, health, education of workers' children etc), from Rs 5 crore to Rs 50 crore.
The approach may also involve invoking of Section 16D of the Tea Board Act under which gardens may be taken away legally from absentee owners and handed over to new entrepreneurs willing to run the garden professionally. Citing the example of both Kanan Devan Hills Plantations in Kerala, now working under a worker-owned professionally managed set-up and Durgabari Tea Estate in Tripura, run by a workers' cooperative, the minister said efforts were on to bring some of the big closed gardens in the Dooars area such as Chamurchi, Samsing and Bharnobari.

Rubber Falls On International Trend

Kottayam: Spot rubber declined against another bearish closing in the international front. On NMCE, the July contract increased to Rs 75.30 (75.03), August contract to Rs 76.00 (75.64), September contract to Rs 76.20 (75.84) and October contract to Rs 76 (75.92) per kg for RSS 4. The open interest was 6,327 (6,042) lots with 2,557 (2,616) lots in July, 2,235 (2,025) lots in August, 923 (888) lots in September and 612 (513) lots in October. The volumes totalled 3,099 ( 3,112) lots. The near month July contract finished steady at Rs 75.60 a kg against Rs 75.15 on MCX. RSS 3 slipped further at its July futures to 257.1Yen ( Rs 84.80) from 258.3 Yen a kg at TOCOM. Its spot fell to Rs 87.98 from Rs 89.14 a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 74 (75); RSS-5: 72.50 (73); ungraded: 70 (71); ISNR 20: 72 (72.50) and latex 60 per cent: 56.85 (56.85).

Global Wheat Production Likely To Trail Consumption Once Again

After the record harvest of 628 million tonnes (mt) in 2004-05, world wheat output is set to trail consumption for the third year in a row in 2007-08. Even though aggregate out put is forecast to increase from the weather affected 593 mt of 2006-07. The market has already taken congnisance of tightening supplies. World wheat out put prospects deteriorated in May and in the current month with hot, dry conditions in Ukraine, southern Russia and southeast Europe as also decreased plantings in Canada resulting in lowering of forecast output from earlier expectation.
The availability of premium milling quality wheat is becoming increasingly uncertain. The forecast of closing stocks for the year is 111 mt, comprising 31 mt in the five major exporting countries, the lowest for 12 years. Rising wheat prices are sure to result in some demand compression. For instance, imports by sub-Saharan Africa could be lower. Corn (maize) and oilseed (mainly soyabean, rapeseed) continue to rule strong on the back of sustained demand from bioethanol and biodiesel producers. In addition to wheat, barley prices too have firmed up. Indian consumers will have to live with high wheat prices for the rest of the year.

Pepper Future Increases On Optimistic Activities

Kochi: Pepper futures market rose on June 28, on bullish activities following buying interest shown by exporters and domestic players to buy spot. Exporters and domestic players are said to have bought 50-60 tonnes of the commodity at Rs 140-Rs 145 a kg depending upon the quality of the produce. The prices increased on the internal strength and it is still the competitive source with about 14,000 tonnes of certified pepper available with the exchanges. Vietnam, which strictly monitors the Indian futures market, decreased its prices following the decline in the futures market here on June 27. July contract on NCDEX increased by Rs 239 a quintal on June 28, to close at Rs 15,215 from Rs 14,976 on June 27. The increase in other contracts was from Rs 92 to Rs 265 a quintal. On NMCE, July contract moved up by Rs 311 a quintal to close at Rs 14,932 from Rs 14,621.
The increase in other contracts was from Rs 135 to Rs 362 a quintal. The total turnover on NCDEX increased by 10,993 tonnes on June 28, to 25,949 tonnes from 14,956 tonnes. On NMCE, it increased by 487 tonnes to 1,854 tonnes from 1,367 tonnes. The total open interest on NCDEX went up by 815 tonnes to 24,602 tonnes while July position dropped by 333 tonnes to 4,815 tonnes. August position increased by 850 tonnes to 14,720 tonnes from 13,870 tonnes. On NMCE, total open interest moved up by 23 tonnes to 2,776 tonnes from 2,753 tonnes. Spot prices in tandem with the futures market trend and purchasing support increased by Rs100 a quintal on Thursday to close at Rs 14,200 (un-garbled) and Rs 14,800 (MG 1).

Gujarat Govt Asks Farmers Not To Increase Cotton Area

Gandhinagar: With the onset of monsoon and seeding reported from different parts of Gujarat during the past few days, the State Government has suggested farmers not to ignore other crops in favour of cotton to ensure a balanced crop pattern, availability of land for oilseed and pulses, and overall food security. The State Government has asked the farmers to not bring any fresh area under cotton cultivation this year and restrict it to last year's acreage. With groundnut attracting a remunerative price once again the past year saw groundnut kernel prices go up 40 per cent, from Rs 500 to Rs 700 per 20 kg many farmers are hoped to heed the government's advice.
As a result, the area under groundnut is likely to increase by 20 per cent this year, from 16.56 lakh hectares to 20 lakh hectares. But the same may not be for cereals and pulses whose area under cultivation is likely to decrease from 12.4 lakh and 9.4 lakh hectares respectively to 10 lakh and eight lakh hectares this year. From the central Gujarat regions, however, new crop patterns are emerging. Encouraged by a 12 per cent annual growth, almost doubling the farm output to more than 1.67 lakh tonnes between 1993-94 and 2005-06, the Gujarat Government had aimed a 14 per cent growth in agriculture during the Eleventh Five-Year Plan.

With its emphasis on micro-irrigation schemes like drip irrigation and sprinklers, nearly five lakh hectares is hoped to be added to the existing 88 lakh hectares under cultivation. Gujarat produces about 40-45 per cent of India's cotton and its area under cotton cultivation was nearly 24 lakh hectares. Of the country's 250 lakh bales of cotton production, the State's contribution is expected to be around 100 lakh bales. Cotton cultivation in Gujarat got a bonus particularly in the wake of the Central Government's cotton promotion schemes like Integrated Cotton Development Programme (ICDP) and the Technology Mission on Cotton, and easy sale of crop through agencies like the Cotton Corporation of India (CCI) and the NAFED.

AP Registers Record Paddy Procurement

Hyderabad: Andhra Pradesh has recorded a record in paddy procurement, with various agencies contributing a total of one crore tonnes during October 2006 to June 2007. The figure for the comparative period previous year was 88.32 lakh tonnes. In 2003-04, the State procured 77.83 lt. The farmers were paid Rs 6,513 crore for the paddy procured. The millers dominated the procurement process with 93.18 lt (84.45 lt ). However, it was the contribution of women self-help groups (SHGs) under Indira Kranti Patham,a World Bank-funded programme to eliminaterural poverty. On an experimental basis, the Government established 592 procurement centres run by women in rural areas last year. Last year, the MSP (minimum support price) for `A' grade paddy was Rs 650 a quintal. With regard to rice, the millers delivered a quantity of 43.62 lt of rice during 2006-07 as against 37.79 lt of rice procured in the previous year. The Union Government sanctioned 120 rakes for movement of two lakh tonnes of boiled rice to other States in June.

Cardamom Plants Affected By Rains, Gale

Kochi: Heavy rains came with gale last weekend have damaged cardamom plants in almost all the estates in Kerala's Idukki district, inflicting heavy losses. Plant stems have been broken half way in many estates, while in several plantations plants have been shaken and that will affect flowering and capsule setting. In these cases, tillers have to come out afresh and that would take one year to flower. The southwest monsoon came late this year and with heavy downpour, the area got 40 cm rainfall. In most of the estates, the plants were in the process of revival after a protracted dry spell last summer. The drought had already inflicted a heavy loss to cardamom growers.
Due to the dry spell, growers had to delay spraying of the copper sulphate , lime mixture, which is done immediately after the onset of southwest monsoon in the normal course. The total cost for raising one acre of cardamom plantation would come to around Rs 95,000 excluding the capital investment and interest on the cultivation expenses. Due to unfavourable weather conditions, the total output next season in Kerala and Tamil Nadu was likely to decline by 30-40 per cent.

Pepper Future Witnesses Up Trend

Kochi: Pepper futures remained its upward move on optimistic reports from the US, which has activated the markets in the country and purchasing support. Besides, reports of the proposed joint meeting of exporters from Brazil, Vietnam and Indonesia in Jakarta this week have also created some enthusiasm in the speculators who have turned out to be more optimistic. Multinationals, comprising a Singapore-based investor-company, had shown interest in buying NCDEX delivered pepper at the current rates. Indian parity on June 25, was at $3,975-4,050 a tonne (c&f). Vietnam was reportedly offering V Asta at $4,120 a tonne (f.o.b) while 550 GL and 500 GL at $3,525-3,525 a tonne and $3,750 a tonne (f.o.b), respectively. Lasta was being offered at $3,850-3,950 (f.o.b). July contract on NCDEX increased by Rs 321 a quintal to Rs 15,110. The increase in other contracts was from Rs 300 to Rs 416 a quintal. The increase in other contracts was from Rs 375 to Rs 488 a quintal. The total turnover on NCDEX increased by 7,984 tonnes to 28,221 tonnes, while on NMCE it moved up by 995 tonnes to 2,302 tonnes. The total open interest on NCDEX fell by 78 tonnes to 23,855 tonnes while July and Aug positions dropped by 602 tonnes and 47 tonnes respectively to 5,734 tonnes and 13,611 tonnes.

Coimbatore Tea Auction Sees Easy Price

Coimbatore: The total offerings at the weekly sale swelled to 6.60 lakh kgs on June 22, with leaf grades accounting for 2.16 lakh kgs and the balance of the dust. There was fair demand for the orthodox leaf, with shippers to CIS countries extending fair support. Select invoices of clean well-made Nilgiris leaf (particularly the bolder broken and larger leaf grades) ruled occasionally dearer, others tended easier by Rs 2 to Rs 3 with some withdrawals. HLL displayed interest only on select lines of larger leaf grades. Few exporters and internal buyers operated on orthodox dust. Exporters picked the medium/plainer bolder grades. Some export enquiry was evident for the medium finer CTC dust grades. Prices for good liquoring high-priced teas saw levels easier by Rs 2 to Rs 3 while medium/plainer sorts eased Re 1 to Rs 2.

CII, Rubber Body Signs MOU For Expo

Kolkata: All India Rubber Industries Association (AIRIA), the apex body for rubber industries in India, has inked a Memorandum of Understanding with the Confederation of Indian Industry (CII) for jointly organising the India Rubber Expo 2009 in Kolkata. The primary objective of the pact with CII was to highlight the opportunities in the rubber sector.

Rates Ease At Kochi Tea Auction

Kochi: Tea arrivals at the Kochi tea auction remained to be strong despite the high levels last week. Dust tea arrivals was at 14,00,000 kg, while leaf arrivals was 3,87,000 kg. Good liquoring CTC dust remained steady at last week's levels, while medium CTC declined by Rs 2-4. Orthodox high grown dust was decrease by Rs 5, while medium orthodox prices eased by Re 1- Rs 2. Best CTC varieties quoted Rs 52-62, medium CTC was at Rs 47-50 and below medium ranged between Rs 37-40. High grown BOPD quoted at Rs 95, medium BOPD fetched Rs 42-44 and secondaries ranged between Rs 32-37. Prices of good CTC varieties continued firm, while medium and plain CTC prices declined by Re 1 - Rs 2. Exporters were fairly active in orthodox grades. Best Nilgiri varieties fetched Rs 72-92, medium orthodox ranged between Rs 46-72 and plain orthodox was at Rs 42-44. Best CTC leaf fetched Rs 51-54 and medium CTC leaf was at Rs 42-45. Pasuparai FD fetched the top price in the dust variety at Rs 96, followed by Kodanad BOPD at Rs 95, Kannavarai SFD at Rs 79 and Shanthi SFD at Rs 78.

Rubber Witnesses Weak Trend

Kottayam: The domestic rubber prices suffered further set back on June 21. In spot, RSS 4 declined to Rs 78.50 from Rs 80 a kg both at Kottayam and Kochi. The rubber futures remained to rule weak quoting the near month July contract down at Rs 79.50 against Rs 81.60 a kg on MCX. On NMCE, the July contract concluded the extremely bearish session at Rs 78.50 (Rs 80.57), August at Rs 79.80 (Rs 81.61), September at Rs 79 (Rs 80.75) and October contract at Rs 78.17 (Rs 79.22) per kg for RSS 4. Spot prices per kg were RSS-4 Rs 78.50 (Rs 80); RSS-5 Rs 77.50 (Rs 79); ungraded Rs 76 (Rs 78); ISNR 20 Rs 77 (Rs 78.50); and latex 60% Rs 58.95 (Rs 60).

Rubber witnesses fall in prices

Kottayam: The day's mood was dampened by another sharp fell in TOCOM. The global trendsetter decline on profit booking and renewed selling pressure in late trading followed by yens climb against dollar. On the domestic front, sheet rubber weakened to Rs 80 from Rs 80.75 and Rs 81 a kg respectively at Kottayam and Kochi. The July contract on NMCE decline further to Rs 80.60 (82.49), August to Rs 81.71 (83.57), September to Rs 80.70 (82.36) and October to Rs 79.01 (80.48) per kg for RSS 4. Spot rates were (Rs/kg): RSS-4: 80 (80.75); RSS-5: 79 (79.25); ungraded: 78 (78.50); ISNR 20: 78.50 (79) and latex 60 per cent: 60 (60).

Rubber sees mixed trend

Kottayam: Physical rubber prices were almost firm on June 19. A better closing in TOCOM kept RSS 4 slightly better at Rs 80.75 and Rs 81 a kg respectively at Kottayam and Kochi against Rs 80.50 a kg on June 18. On NMCE, the July contract declined to Rs 82.49 (83.27), August to Rs 83.60 (84.27), September to Rs 82.27 (83.11) and October to Rs 80.40 (81.49) per kg for RSS 4. The July contract finished weak at Rs 82.85 (83.15) a kg on MCX. The open interest on NMCE stood at 5,707 (5,511) lots with 3,331 (3,286) lots in July, 1,580 (1,499) lots in August, 593 (579) lots in September and 203 (147) lots in October. RSS 3 (spot) fell to Rs 91.15 (92.06) a kg at Bangkok. The July futures for the grade improved to 276.2 yen (Rs 91.04) from 271.4 yen a kg at TOCOM. Spot prices were (Rs/kg): RSS-4: 80.75 (80.50); RSS-5: 79.25 (79.25); ungraded: 78.50 (78.50); ISNR 20: 79 (79) and latex 60 per cent: 60 (60).

Rubber witnesses steady trend

Kottayam: A better closing in leading international indices kept the domestic rubber steady on June 18. The futures market reacted more favourably to the global recovery while the physical rubber prices were in mixed trend lacking proper purchasing support from major consuming sectors. Sheet rubber improved to Rs 80.50 a kg both at Kottayam and Kochi from Rs 80 a kg on the previous weekend. The July contract for RSS 4 increased to Rs 83.40 (81.64), August to Rs 84.30 (82.71), September to Rs 83.25 (81.77) and October contract to Rs 81.50 (80.13) per kg for on NMCE. Spot prices were (Rs/kg): RSS-4: 80.50 (80); RSS-5: 79.25 (79.25); ungraded: 78.50 (78); ISNR 20: 79 (79) and latex 60 per cent: 60 (60).

Cardamom rates fall on poor quality

Kochi: Cardamom prices fell during the week in Kerala and Tamil Nadu markets due to poor quality and weak demand. Meanwhile, MAS Enterprises, the auctioneers, which did not suspend the auction along with others after May 31 and conducted its auction on June 15 at Vandamedu, has also decided now to suspend auction till the arrival of the next crop hoped in late July/early August. The harvesting would depend on the behaviour of the Southwest monsoon, which has yet to pick up in the cardamom growing areas.

Apart from the uneconomical arrivals the auctioneers had to settle their accounts before the starting of the next season. The total arrivals during the current season upto June 8 stood at 8,189 tonnes as against 9,507 tonnes on the same date last season while the sales in the current season were at 7,526 tonnes compared with 8,882 tonnes in the corresponding period last season. Prices in the local market in Bodinayakannur were AGEB Rs 430-440, AGB Rs 360-370, AGS Rs 350- 360 and AGS 1 Rs 280-290. Harvesting will, therefore, depend solely on the behaviour of the current monsoon.

Guarseed future sees down trend

Mumbai: The downward trend of Guarseed futures remained this week and closed with a loss of Rs 81 to Rs 1,687 per quintal on June 15. Being a kharif crop, traders look for the onset of monsoon over Rajasthan the largest Guarseed producing State for deciding on the futures price trend. Guarseed futures on NCDEX turned weak after the Indian Meteorological Department (IMD) expressed satisfaction over monsoon advancement. Guarseed opened at Rs 1,779 per quintal and declined to Rs 1,768 as sentiments turned bearish over IMD announcement. The turnover of guarseed futures on NCDEX during the week was Rs 1,660 crore.

Rajasthan accounts for 70 per cent of India's total production of about 5-7 lakh tonnes of guarseed per annum. Guar requires 8-15 inch of rain in 3-4 spells during the growing period and is harvested in October-November. Splitting guarseeds produces guar gum and guar powder, which are used in industries such as oil exploration, textiles and dyeing industries. Maize futures, which was trading flat at Rs 760 during the week is poised to move up in coming days as output is estimated to decline sharply, coupled with increasing demand from poultry and starch manufacturers.From a low of Rs 741 per quintal in May, July futures touched Rs 782 on June 6 and closed lower at Rs 758 per quintal on June 15. During 2006-07, India's maize production is pegged at 11 million tonnes (mt) against last year's production of 14.5 mt.

Wheat sales controlled below 120 lt

New Delhi: With global wheat prices scaling new peaks, the Centre is caught in a cleft stick over its planned 20 lakh tonne (lt) import tender by the month-end. The week just ended has witnessed prices at the Chicago Board of Trade cross the psychological $6-a-bushel mark or $220 per tonne (one bushel=27.216 kg) for the first time in 11 years. After hitting a high of $6.33 on June 14, the September futures contract closed the week at $6.21 a bushel or $228 per tonne. Likewise, November wheat at the Euronext.liffe exchange reached an all-time record of 181 per tonne on June 14, before settling at 176.50 or $235 per tonne.

Even the less-preferred Black Sea origin wheat from Russia Ukraine has currently clamped down on exports would be available for no less than $280 per tonne. The current levels will surpass even the $263-per-tonne rate that STC had negotiated for 3.06 lt out of a 10 lt tender it floated last month, which was refused as being too high by the Centre. The trigger for the present bullishness has been a US Department of Agriculture report, released earlier in the week, projecting global year-ending wheat stocks for 2007-08 at 112.03 million tonnes a 30-year-low.

While all these may upset the Centre's import plans, it can, nevertheless, draw comfort from the Food Ministry's latest offtake data, displaying the total lifting of wheat from the Central pool during 2006-07 at 117 lt. The low wheat offtake has been compensated by higher lifting of rice, which has helped maintain overall grain supplies to the targeted public distribution system (PDS) at around 310 lt. During the 2007-08 season, public wheat procurement is hoped at 110 lt, which, with opening stocks of 45.63 lt, will confer total availability of 155 lt. Assuming offtake to be controlled at 120 lt, the closing stocks of 35 lt will be a tad below the minimum buffer norm of 40 lt for April 1. The import requirement would, then, be limited to about 20 lt rather than the 50 lt currently being targeted.

Rubber witnesses downtrend

Kottayam: Physical rubber prices resumed the downward journey on June 16. Sheet rubber fell to Rs 81 and Rs 80.50 a kg respectively at Kottayam and Kochi from Rs 82 a kg on purchaser resistance. The futures market moved down trading the July contract for RSS 4 at Rs 82.90 against Rs 84.66 a kg on MCX. The June delivery contract for the grade expired slightly better at Rs 82.62 against Rs 82.28 a kg, while the near month July contract weakened further to Rs 82.46 (84.42), August to Rs 83.60 (85.49) and September contract to Rs 82.45 (84.35) per kg on NMCE. Spot prices were (Rs/kg): RSS-4: 81 (82); RSS-5: 79.50 (81); ungraded: 78 (79.50); ISNR 20: 79.25 (80.50) and latex 60 per cent: 60 (60).

Orthodox teas benefit on demand at Kochi auctions

Kochi: There was a significant increase in leaf tea arrivals from 2.58 lakh kg to 3.87 lakh at the Kochi tea auction, while dust arrivals maintained last week highs at 13.18 lakh kg. Good liquoring CTC dust varieties remained barely steady while prices of other CTC eased by Rs 2-3. High grown orthodox varieties eased by Rs 2 - 3 even as medium orthodox were barely steady. Blenders were selective. Best CTC varieties fetched Rs 54 - 62, medium CTC reigned at Rs 48 - 52 and below medium were at Rs 38 - 42. High grown BOPD fetched Rs 105, medium BOPD ranged at Rs 45 - 46 and secondaries quoted Rs 33 - 38.

Good general demand perked up the prices of high grown orthodox varieties by Rs 2-3. Whole leaf grades were also higher. Medium orthodox witnessed a steady market. CTC varieties were firm around last week's levels. There was good demand from blenders and interstate buyers on CTC grades. Best Nilgiri leaf quoted at Rs 70 - 90, medium orthodox Rs 47 - 74 and plain orthodox ranged at Rs 42 - 44. Best CTC leaf fetched Rs 51 - 54 and medium CTC was at Rs 43 - 46.

AP Govt to bring out GM seeds Act to control Bt cottonseed activity

Hyderabad: The Andhra Pradesh Government is likely to introduce a GM Seeds Act in the next few days to keep tab on sales, quality and distribution of genetically modified seed as the kharif season begins in the State. Though the term GM looks generic, the intention of the Government is to control the Bt cottonseed activity in the State. The Bt cotton acreage is expected to cross the 20-lakh-acre mark this year as against 16 lakh acres in 2006-07 and 5.5 lakh acres the year before. There was not much increase in productivity when farmers used Bt seed. While Bt-I (Bollgard-I) technology promoted by Monsanto offers protection against bollworms, the second generation Bt-II provides shield against heliothis.

Rubber sees mixed trend

Kottayam: Spot rubber prices displayed a mixed trend on June 14. Covering groups and buy agents lifted the prices initially but sheet rubber fell back at Rs 82 a kg on late trading after hitting an intra-day of Rs 83 a kg both at Kottayam and Kochi lacking genuine buyers at higher levels. The rubber futures turned weak on late trading after a better start on NMCE. The June contract weakened to Rs 82.50 (83.06), July to Rs 84.37 (85.13), August to Rs 85.50 (86.32) and September contract to Rs 84.38 (84.83) per kg for RSS 4. The open interest was 5,593 (7,220) lots with 322 (2,050) lots in June, 3,491 (3,436) lots in July, 1,324 (1,298) lots in August and 456 (436) lots in September. The transactions totalled 1,949 (1,556) lots. The July contract for RSS 4 declined to Rs 84.58 against Rs 84.92 a kg on MCX. The July futures for RSS 3 improved to 271.6 Yen (Rs 90.28) from 269.9 Yen a kg on TOCOM. Its spot moved up to Rs 91.97 from Rs 91.57 a kg at Bangkok.

Coir Board calls entries for awards

Kochi: The Coir Board has called for entries from exporters, producers, individuals and organisations to be considered for the Coir Industry Awards 2006-07 for outstanding performance in the sector. The awards will be given for 17 categories and a certificate of merit will be given to 6 categories on the basis of performance during 2006-07. The major categories for considering awards are in export of coir products, coir geo-textiles, coir yarn, coir pith and pith-based products, rubberised coir, curled coir, and hand loom coir products.

Pepper future witnesses sharp decline

Kochi: Falling trend continued in the pepper futures as no positive decision has emanated so far from the Regulator on the quantitative restrictions on nearby positions, which will apply on July contracts from June 16. The futures saw a sharp fall on June 13, as the maturity is drawing near. The continuous decline in the futures market has made Indian pepper very competitive in the international market only due to a technical squeeze and not on fundamental changes. Vietnam was quoting 500 GL at $3,375 a tonne (f.o.b) while Brazil was offering B1 at $3,600 a tonne (f.o.b) and B Asta at $3,700 - $3,750 a tonne (f.o.b). June contract on NCDEX declined sharply by Rs 487 a quintal on June 13, to Rs 13,365. The drop in other contracts was from Rs 471 to Rs 636 a quintal. On NMCE, June contract dropped by Rs 233 a quintal to Rs 13,000. The total turnover on NCDEX moved up by 6,241 tonnes to 23,830 tonnes, while on NMCE it went up by 467 tonnes to 1,623 tonnes. June position dropped by 2,030 tonnes to 379 tonnes.

Rubber witnesses downtrend

Kottayam: The domestic rubber market resumed its downward journey on June 12. Tyre companies lowered their quotes to unethical levels to avoid fresh commitments. On the physical front, RSS 4 fell to Rs 81 and Rs 81.50 a kg from Rs 82 and Rs 82.50 a kg respectively at Kottayam and Kochi. In futures, the July contract for RSS 4 declined marginally to Rs 83.87 a kg from Rs 84.14 on MCX. The market displayed a mixed trend on NMCE quoting the June contract at Rs 82.45 (81.62), July at Rs 84.21 (84.39), August at Rs 85.30 (85.26) and September at Rs 83.46 (83.52) per kg for RSS 4. Spot r prices were (Rs/kg): RSS-4: 81 (82); RSS-5: 80 (80.50); ungraded: 78.75 (79.50); ISNR 20: 79.50 (80) and latex 60 per cent: 59.70 (60).

Removal of VAT on copra appreciated

Kochi: The First Commodities Exchange of India Ltd has congratulated the State Finance Minister for withdrawing the 4 per cent VAT on copra, saying that it would help the ailing oil mill industry a lot. The decision of the Government to remove the VAT on copra will result in producing quality coconut oil for mass distribution besides providing more employment. With the removal of VAT, the Oil Mills Trade and Industry would do its best to produce more quality coconut oil in the State to replace the edible oil supply chain.

Pepper future declines

Kochi: The pepper futures market fell on continued uncertainty over the quantity restriction on nearby position that is likely to come into force from July 16. Given the competitive position of Indian pepper in the world market, a positive decision on this issue is urgently required. Those covered earlier are liquidating, fearing they would not be able to hold more than 100 tonnes after July 16. Intra-day trade is controlling the market, which is the bread and butter of the exchanges and the brokers. Vietnam was further easier to $3,290-$3,300 a tonne (f.o.b.) for 500 GL. June contract on NCDEX increased by Rs 49 on June 11, to close at Rs 14,049 from Rs 14,000. The decline in other contracts was from Rs 74 to Rs 196 a quintal. On NMCE, June contract fell by Rs 241 a quintal to close at Rs 13,200 from Rs 13,441. July, August and September dipped by Rs 167, Rs 181 and Rs 46 a quintal respectively while October and November increased by Rs 20 and Rs 100 respectively. The total turnover on NCDEX increased by 10,829 tonnes to 24,295 tonnes while on NMCE it increased by 1,203 tonnes to 2,442 tonnes. The total open interest on NCDEX dropped by 1,077 tonnes to 25,163 tonnes.

Rubber sees weak trend

Kottayam: The opening session of the week saw a sharp bear strike in physical rubber prices. The international markets remained to rule weak putting further pressure on the raw material. Sheet rubber declined to Rs 82 and Rs 82.50 a kg respectively at Kottayam and Kochi from Rs 83.50 a kg on previous weekend. The market lacked proper purchasing support and there were also some import rumours hovering around persuading traders to press for sales even at lower levels.

The rubber futures declined further quoting the July contract for RSS 4 at Rs 84.30 (85.78) a kg on MCX. The June contract for the grade fell to Rs 81.60 (83.17), July to Rs 84.41 (86.01), August to Rs 85.44 (86.31) and September contract to Rs 83.60 (84.17) per kg on NMCE. The open interest was 7,877 (7,731) lots with 2,885 (2,928) lots in June, 3,348 (3,345) lots in July, 1,250 (1,120) lots in August and 394 (338) lots in September. RSS 3 declined at its July futures to 271 Yen (Rs 90.99) from 273.1 Yen a kg at TOCOM. Spot rubber prices were (Rs/kg): RSS-4: 82 (83.50); RSS-5: 80.50 (82.50); Ungraded: 79.50 (81.50); ISNR 20: 80 (82.50) and Latex 60 per cent: 60 (60).

Rubber witnesses weak trend

Kottayam: Physical rubber prices closed on weak note on June 09. RSS 4 fell to Rs 83.50 from Rs 84.50 and Rs 84 a kg respectively at Kottayam and Kochi. The rubber futures were almost steady on NMCE lacking global guidance in the weekend session. The June contract declined the shutters at Rs 83 (83.10), July at Rs 85.95 (86.04), August at Rs 86.28 (86.39) and September at Rs 84.06 (84.06) per kg for RSS 4. The open interest was calculated at 7,731 (7,749) tonnes with 2,928 (3,022) tonnes in June, 3,345 (3,296) tonnes in July, 1,120 (1,103) tonnes in August and 338 (328) tonnes in September. June contract for RSS 4 fell to Rs 83.36 from Rs 83.98 a kg on MCX. Spot prices per kg were as follows: RSS-4: 83.50 (84.50); RSS-5: 82.50 (83); ungraded: 81.50 (81.75); ISNR 20: 82.50 (82.75); latex 60%: 60 (60).

Edible oil witnesses mixed trend

Mumbai: Though the long-term optimistic trend for soyabean, refined soya oil and mustardseed futures remains intact, trading pattern continued mixed during the week. Refined soya oil futures on NCDEX, which tracks palm oil futures prices in Bursa Malaysian derivatives and futures market. Palm oil September futures came under the grips of the bears from June 10, after China slowed down its imports from Malaysia. Between January and May, China's palm oil imports from Malaysia and Indonesia jumped 27 per cent to 1.6 million tonnes.

NCDEX recorded a trade volume of Rs 1,807.83 crore for refined soya oil during the week. Soyabean futures on NCDEX turned weak towards the end of week due to decline in demand from millers. The downward trend appears to have triggered by news that soymeal exports to South-East Asian countries had fallen to 1.1 lakh tonnes in May 2007 against 1.4 lakh tonnes last year.

Mentha oil prices likely to decline

Chennai: Mentha oil prices could fall in the near term as arrivals could put pressure on the market. An outlook for the commodities market this week says the current warm climate in menthe growing region could prove beneficial to the growth of the plant. Another reason for the downtrend could be that exporters had procured menthe oil at all levels in the spot market but export enquiries had been scarce. Mentha prices were range-bound last week with spot prices at Sambhal moving between Rs 525 and Rs 510 a kg.

Darmona tea creates record price at Coonoor auction

Coonoor: The Aravenu-based Darmona Estate made a new record at the auctions of the Coonoor Tea Trade Association (CTTA) when its RD grade of the CTC teas. Highfield Estate Special came second at Rs 82, followed by Garswood Estate Clonal at Rs 75. Darmona beat several brands of orthodox teas belying the general contention that the CTC teas fetch lower prices than the orthodox teas. Pakistan purchased some well made brokens for Rs 44-45 a kg. Western Indian purchasers were active on CTC and orthodox dust grades. Most orthodox leaf lost Re 1. Better medium CTC dusts eased up to Rs 2. Browner types lost much more. Secondary orthodox dusts suffered withdrawal. Quotations held by the brokers indicated bids ranging from Rs 40 to 42 a kg for the plain leaf sorts and Rs 61-69 for the brighter liquoring sorts.

Domestic rubber under pressure

Kottayam: Domestic rubber prices continued under immense pressure following the continuous bear strike in international indices. Sheet rubber closed at Rs 84.50 and Rs 84 respectively at Kottayam and Kochi against Rs 85 a kg on June 8. Major manufacturers kept their quotes much below at Rs 84 a kg to avoid fresh commitments in a declining phase, and the volumes were meagre, lacking genuine quantity buyers on any grade. The rubber futures reported heavy losses on NMCE. The June contract nose-dived to Rs 83.80 (85.55), July contract to Rs 85.95 (87.77), August to Rs 86.11 (87.87) and September contract to Rs 84 (85.46) per kg for RSS 4. The July contract fell to Rs 85.42 from Rs 87.50 a kg on MCX.

Kochi tea auction sees mixed trend

Kochi: New flush from the monsoons has raised arrivals to the Kochi tea auction with the quantum of dust growing to 13,24,000 kg although leaf arrivals declined to 2,58,000 kg. Prices of CTC teas fell by Rs 2 to 3. CTC teas below Rs 50 witnessed good enquiry from exporters. Orthodox high grown dust remained steady. Best CTC varieties quoted between Rs 56 and Rs 65, medium CTC ranged Rs 50- 54, while below medium was at Rs 38-40. High grown BOPD quoted Rs 116, medium BOPD was at Rs 45- 46 and secondaries fetched Rs 36 - 40.

Lower arrivals seem to have picked up the leaf tea market where high grown orthodox grades were dearer by Rs 2-3 following quality. Mediums also saw firm markets, while the price of secondary orthodox eased. Orthodox grades saw good enquiry from exporters to CIS countries. Best Nilgiri varieties fetched Rs 67 - 87, medium orthodox was at Rs 48 - 75 while plain orthodox was at Rs 42 - 44. Best CTC leaf fetched Rs 50 - 55 and medium CTC ranged at Rs 43 - 45.

Port restricts on Sri Lanka quota tea imports off

New Delhi: The Finance Ministry has done away with port curbs on imports of quota tea from Sri Lanka at a concessional rate under the Indo-Sri Lanka free trade agreement (FTA). Under the FTA, up to 15 million kg of tea from Sri Lanka can be imported yearly into India at a concessional import duty of 7.5 per cent. Currently, basic Customs duty on tea is 100 per cent and that on instant tea is 30 per cent The restrictions were placed under the FTA, which was signed in 1998, to assuage the concerns of the domestic tea growers, especially those from South India, who apprehended large-scale imports from Sri Lanka, affecting their interests. During negotiations with India, Sri Lanka had submitted that it was not able to use the annual tariff rate quota of 15 million kg due to import conditions such as port restrictions. Only 0.11 million kg valued at Rs 1.90 crore were imported during January-December 2005 against 0.16 million valued at Rs 1.86 crore during the corresponding period in 2004. During January-November 2006, import of tea from Sri Lanka under the FTA totaled to only 0.060 million kg against 0.094 million kg during the corresponding period of 2005. Tea imports into the country moved up 19.25 per cent during April-January 2006-07 to $24.82 million, compared to $20.81 million in the corresponding previous period. In value terms, tea totaled for 0.02 per cent of the country's total imports during the period.

Rubber witnesses down trend

Another fall in international rubber prices dampened the domestic sentiments on june 7. On the physical front, the prices slipped on moderate selling from dealers amidst buyer resistance. Sheet rubber fell to Rs 85 from Rs 85.75 and Rs 85.50 a kg respectively at Kottayam and Kochi. On NMCE, the June contract for RSS 4 declined to Rs 85.40 (86.64), July to Rs 87.89 (88.33), August to Rs 87.97 (88.43) and September to Rs 85.40 (86.16) per kg for RSS 4. The June contract for RSS 4 fell to Rs 85.39 (85.64) a kg on MCX. RSS 3 fell sharply at its July futures to 277.9 Yen (Rs 93.14) from 283.6 Yen a kg at TOCOM. In spot, RSS 3 slipped to Rs 95.64 from Rs 95.72 a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 85 (85.75); RSS-5: 83.25 (84.25); ungraded: 82 (83); ISNR 20: 83 (84) and latex 60 per cent: 60 (61.05).

Erratic Monsoon Decreases Cardamom Crop Production

Kochi: Erratic southwest monsoon this year may delay the next cardamom crop apart from decreasing the output. The plantations in Kerala's Idukki district where much of the crop in the country is cultivated are in a bad shape due to protracted dry spell. The situation has been further aggravated with insufficient rains so far this year making the revival of the plants almost unlikely mainly in the un-irrigated areas. After May 28, there hasn't been any showers and this has affected the flowering and pollination. Hence, given the present unfavourable weather conditions, harvest in the next season would be delayed and the first crop might arrive only by August third week.

According to the Spices Board, the total area under cardamom in the country in 2003-04 was 73,237 hectares and of which the yield area was at 55,221 hectares. Kerala topped with 41,332 ha (with 30,991 ha yielding area) followed by Karnataka with 26,838 ha (20,510 ha) and Tamil Nadu 5,067 ha (3,720 ha). The yield per ha in the three States was very low with 286 kg, 85 kg and 259 kg respectively. The total production during the current season, which has come to an end, is pegged at around 11,000 tonnes from that of last season (Aug - July) provisionally put at 12,540 tonnes.

Dry weather impacts Nilgiris tea production

Coonoor: Dry weather has decelerated the harvest in many tea plantation pockets of the Nilgiris and the spread of red spider mites has raised doubts on the flush crop of June. Till April, the rainfall was lower than the level of last year as also the decennial average in all the taluks. The cumulative rainfall in the four months was only 14.5 cm, against 28.4 cm last year and the decennial average of 23.2 cm. In some areas, the red spider mite infestation has flared up. In many instances, pesticide application was initiated only after noticing prominent symptoms of damage.

Nafed, AP Oilfed Opens 4 Copra Procurement Centres East Godavari

Kakinada: Nafed and the AP Oil Federation (Oilfed) sets up four copra procurement centres in the Konaseema region of East Godavari district on Wednesday as a market intervention measure. Copra will be procured from the farmers at Rs 3,350 a quintal and each farmer would be admitted to sell only two bags of copra. The procurement centres were opened at Ambajipeta, Mummidivaram, Nagaram and Tatipaka villages. There were demands from local leaders and farmers that at least two or three more centres be opened to stabilise prices in the market.

Rubber Witnesses Mixed Trend

Kottayam: Physical rubber prices were in a mixed trend on June 5. Sheet rubber declined to Rs 85.50 from Rs 85.75 a kg at Kottayam, while the grade finished unchanged at the same level in Kochi. The rubber futures turned better following fresh purchasing and short covering on NMCE. The June contract increased to Rs 86.50 (86.03), July to Rs 88.40 (87.11), August to Rs 88.32 (86.82) and September contract to Rs 85.95 (84.29) per kg for RSS 4. Spot prices were (Rs/kg): RSS-4: 85.50 (85.75); RSS-5: 84 (84); ungraded: 82.50 (82.75); ISNR 20: 83.75 (83.75) and latex 60 per cent: 61.05 (61.05).

Pepper Futures Bounce On Purchasing Support

Kochi: Pepper futures market rebounded back despite rumours by bear operators that prices at all the origins had decreased sharply on June 5. There was purchasing support as the exporters mopped up 100 tonnes of spot pepper. Heavy pepper availability in the world is limited. The reported fall in prices in other origins was for the lower grades of pepper. On the international market different versions were emanating from different quarters. 500 GL Vietnam has decreased to $3,300 a tonne (f.o.b.), while others said that it was down to $3,450 a tonne (f.o.b).

June contract on NCDEX moved up by Rs 339 a quintal to Rs 14,127. The increase in other contracts was from Rs 203 to Rs 318 a quintal. On NMCE, June contract increased by Rs 322 a quintal to Rs 13,740. The increase in other contracts was from Rs 36 to Rs 295 a quintal. The total turnover on NCDEX increased by 1,148 tonnes to 25,572 tonnes, while on NMCE, it increased by 38 tonnes to 2,121 tonnes. The total open interest on NCDEX declined by 64 tonnes to 27,043 tonnes. June position declined by 527 tonnes to 9,145 tonnes. July and August increased by 489 tonnes and 6 tonnes respectively to 11,499 tonnes and 4,466 tonnes. On NMCE, total open interest moved up by 27 tonnes to 3,542 tonnes. June position was at 2,529 tonnes, down by five tonnes.

Pepper Futures Mkt Declines

Kochi: Pepper futures market fell on strong rumours that Vietnam prices have fallen sharply on June 4. Besides, the falling trend in the futures market here is influencing the international market besides sending out wrong signals. Investors and National Cooperatives were ready to buy NCDEX delivered at July price of Rs 14,360 a quintal. The uncertainty over the quantity restrictions on near month position is also creating problems in the market. Vietnam price for 500 GL was at $3,550 a tonne (f.o.b), while rumours spread that it was at $3,350 a tonne (f.o.b). Indian parity was at $3,800-3,850 a tonne (c&f). June contract on NCDEX decreased by Rs 91 a quintal on June 4, to close at Rs 13,786.
The dip in other contracts was from Rs 99 to Rs 148 a quintal. On NMCE June decreased by Rs 93 to close at Rs 13,460 from Rs 13,553 a quintal. The total turnover on NCDEX increased by 7,542 tonnes to 24,424 tonnes, while on NMCE it increased by 15,355 tonnes to 16,775 tonnes. The total open interest on NCDEX increased by 164 tonnes to 27,107 tonnes. June position, however, fell by 543 tonnes to 9,672 tonnes, while July and August increased by 468 tonnes and 185 tonnes respectively to 11,010 tonnes and 4,460 tonnes. On NMCE, total open interest declined by 663 tonnes to 2,083 tonnes. June position also declined by 58 tonnes to 2,534 tonnes.

Rubber Declines On Lower Volumes

Kottayam: A marginal improvement in TOCOM near months failed to cheer the domestic rubber markets on June 4. Sheet rubber RSS 4 fell to Rs 85.75 and Rs 85.50 a kg respectively at Kottayam and Kochi against Rs 86 a kg on previous weekend. The rubber futures fell on NMCE. The June contract settled down at Rs 85.90 (87.41), July at Rs 87.07 (87.90), August at Rs 86.80 (87.34) and September contract at Rs 84.59 (85) per kg for RSS 4. The June delivery contract weakened to Rs 85.80 (86.53) a kg on MCX The July futures for RSS 3 improved to 285.7 Yen (Rs 94.79) from 285 Yen a kg at TOCOM. The grade weakened to Rs 96.15 from Rs 97.10 a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 85.75 (86); RSS-5: 84 (84.50); ungraded: 82.75 (83); ISNR 20: 83.75 (84) and latex 60 per cent: 61.05 (61.05).

Overseas Purchaser Real Eneficiary From Sugar Export Sops

New Delhi: If in edible oils, duty decreases have mainly helped foreign suppliers, in the case of export incentives for sugar, the real beneficiary has been the overseas purchaser. Since March, both the Centre and some State Governments have declared various sops for mills to export sugar. While the Centre is offering assistance of Rs 1,350-1,400 per tonne towards defraying costs of internal transport, marketing and port handling, Maharashtra and Karnataka have pledged additional support of Rs 1,000 per tonne, besides exempting mills from paying buy tax on cane. Sugar shipments from Tuticorin are currently quoting at around $270 per tonne free-on-board, representing a decline of $75 since January.

India Important Exporter Of Ground Pepper To France

Kochi: India was the most important supplier of ground pepper to France during 2006 contributing 26 per cent, followed by China and Vietnam exporting around 10 per cent each. France is the second biggest pepper consuming countries in Europe after Germany. During 2006, it imported 9,469 tonnes of pepper, consisting of 7,762 tonnes of whole pepper and 1,708 tonnes of ground pepper. Total import in 2006 was slightly higher than that of 2005. Vietnam was the main source, supplying 42 per cent of total whole pepper imported into France followed by Brazil giving 18 per cent. Indonesia and India supplied around seven per cent each.

Raw Cotton Rates Continue Steady

Coimbatore: Raw cotton prices continue to remain steady despite the widespread complaints among the spinners on tight liquidity position, provoked by the appreciating rupee over the dollar. Growers and ginners from cotton out put centres are said to be no hurry to liquidate cotton stocks held by them as they are watchful on the on-set of monsoon. Postponing transaction under summer heat condition is a move penned by the farmers in the production centres to ward off higher weight loss in raw cotton normally associated at this point of time and this is at the back of the firming cotton market where the prices of most popular varieties have posted two-three per cent rise in the past two weeks.
Of the 45 lakh or so bales booked for export, the quantity of cotton that failed to be lifted by the exporters this time is estimated to be around 10-12 lakh bales. This excess cotton gets added to the unsold cotton already in the market. On the demand side, the trade sources indicated that the increase in the spinning capacity compared to last year and most mills preferring this time to opt for producing coarser count yarn would be the factors for the increased cotton consumption anticipated this year. The market is also agog with reports that many spinners are planning to cut the yarn prices by three to five per cent for the June yarn deliveries considering the tight liquidity.

Cardamom Price Increases At Auctions Held At Kerala

Kochi: Cardamom prices continued to rise at auctions held in Kerala and Tamil Nadu this week, even as the season draws to an end. The auction conducted at Kumily by the Cardamom Processing and Marketing Company (CPMC) was the last auction of the season. Other auctioneers had also stopped auctioning claiming that the arrivals were very thin and it was uneconomical to conduct the auctions. Besides the thin arrivals, auctioneers have to settle the accounts with the traders, which might require at least two months, trading sources claimed.
At the CPMC auction, prices increased by Rs 20 a kg from that of the previous. The maximum price fetched was Rs 488 a kg, while the minimum was Rs 210. Average price was Rs 367.51 up by about Rs 26 a kg from that of May 25 auction. Exporters bought four tonnes of the commodity. Total arrivals during the season up to May 31 stood at 8,114 tonnes against 9,280 tonnes in the same period last season, while the sales were at 7,458 tonnes during the current season compared to 8,663 tonnes last season.

Arrivals Improve At Kochi Tea Auction

Kochi: Tea arrivals picked up at the Kochi tea auction with 1,26,900 kg of dust and 40,800 kg of leaf on offer. CTC dust prices eased by Re 1 to Rs 3, while high growth orthodox varieties remained firm. Price of medium orthodox was dearer by Re 1 to Rs 2. Export enquiry surfaced for below medium CTC varieties. Best quality CTC varieties fetched Rs 58-68, medium CTC realised Rs 50-56 and below medium fetched Rs 40-42. CTC varieties eased by Re 1 to Rs 2, while other high grown varieties remained barely firm. Best Nilgiri grades ranged from Rs 65-85, medium orthodox was at Rs 47-70 and plain orthodox quoted Rs 42-45. Best CTC leaf was at Rs 50-58, medium CTC quoted Rs 44-46. Kodanad BOPD fetched the top price in the dust segment at Rs 116, followed by Parkside BOPD at Rs 110, Mayura RD at Rs 73 and Shanthi SRD at Rs 74.

Corporate Tea Venders Not Eligible For Reduction In VAT In TN

Coonoor: Corporate sellers of tea are disappointed that the last week's reduction of the value added tax (VAT) is not applicable for the produce they sell. The Tamil Nadu Chief Minister, Mr M. Karunanidhi, declared on May 23 that VAT on the teas sold in Coonoor and Coimbatore auctions will be decreased to one per cent from the current four per cent. In the first auctions to be conducted by the Coonoor Tea Trade Association (CTTA), some inter-State buyers and exporters showed keen interest to operate at the reduced VAT.
The notification says that in exercise of the powers conferred by Section 30 (1) of the TN VAT ACT, 2006, the rate of VAT payable for the sale of tea manufactured by private bought-leaf factories and the TN Small Tea Growers' Industrial Co-op Tea Factories' Federation Ltd (Indcoserve) at the tea auction centres of Coonoor and Coimbatore or direct first sale by them has been reduced from 4 per cent to one per cent.

Pepper Future Increases

Kochi: Pepper futures turned hot on May 31, with significant increase in prices on good buying support. The US is said to have shown interest in purchasing Indian pepper. All the other origins were firm. FAQ 500 GL was offered at $3,750 a tonne (f.o.b) while V Asta at $4,050 a tonne (f.o.b). Indonesia and Brazil ruled steady at previous levels of $3,900-3,950 a tonne (f.o.b). Indian parity has gone up on May 31, to $3,950 - 4,000 a tonne (c&f). The rise in other contracts was from Rs 247 a quintal to Rs 456.On NMCE, June contract increased by Rs 428 a quintal to Rs 13,747. The other contracts went up by Rs 287 to Rs 445 a quintal.
The total turnover on NCDEX increased by 2,367 tonnes to 21,002 tonnes, while on NMCE it declined by 291 tonnes to 1,670 tonnes. Spot prices in tandem with the futures market trend increased by Rs 200 a quintal to 13,700 (un-garbled) and Rs 14,300 (MG 1) on Mat 31. The total open interest on NCDEX increased by 408 tonnes to 25,514 tonnes. June position declined by 548 tonnes to 10,591 tonnes. July and Aug moved up by 244 tonnes and 719 tonnes respectively to 9,499 tonnes and 3,625 tonnes. On NMCE, the total open interest moved up by 77 tonnes to 3,481 tonnes.

Rubber Witnesses Down Trend

Kottayam: Spot rubber resumed its downtrend on May 31. RSS 4 slipped to Rs 87.50 and Rs 87.25 respectively at Kottayam and Kochi from Rs 88 a kg on buyer resistance. The market declined amidst low volumes, as there was no selling pressure from traders or growers. Rubber futures turned weak quoting the June contract at Rs. 87.30 against Rs 88.91 a kg on MCX. On NMCE, the June contract decline to Rs. 87.95 (89.39), July to Rs. 88.75 (90.03), August to Rs 88.05 (89.41) and September contract to Rs 85.60 (86.29) per kg for RSS 4. The volumes were 1,632 (1,413) tonnes and open interest 7,382 (7,433) tonnes with 3,490 (3,458) tonnes in June, 2,931 (3,052) tonnes in July, 774 (763) tonnes in August and 187 (160) tonnes in September. The June futures for RSS 3 fell to 284.1 Yen (Rs 95.09) from 288.6 yen a kg at TOCOM. Physical prices were (Rs/kg): RSS-4: 87.50 (88); RSS-5: 86.50 (87); ungraded: 85.50 (86); ISNR 20: 86.25 (87) and latex 60 per cent: 62.10 (62.60).Rubber witnesses down trend