Spot Rubber Stopped Up Untouched - April 29, 2009

Kottayam: On Tuesday, the physical rubber prices remained unchanged. The market failed to move ahead on the sharp gains on National Multi Commodity Exchange (NMCE). According to observers, sentiments remained neutral in the absence of quantity buyers and sellers in the main marketing centres.

Sheet rubber finished flat at Rs 100 a kg due to low volumes.

RSS 4 went up at its May futures to Rs 102.40 (98.74), June to Rs 98.10 (95.80), July to Rs 94.40 (92.66) and August futures to Rs 91.50 (89.64) a kg on NMCE. The May futures for RSS 3 improved to Yen 149.5 (147.7) (Rs 78.38), June to Yen 148.6 (148.2), July to Yen 151 (150), August to Yen 152.8 (151.2), September to Yen 154.6 (153.8) and October to Yen 155.9 (154.9) a kg on Tokyo Commodity Exchange (TOCOM). RSS 3 spot ended at Rs 81.57 (81.56) a kg at Bangkok. The grade dropped to Rs 80.39 (80.46) a kg on Singapore Commodity Exchange (SICOM).

Spot rates were (Rs/kg): RSS-4: 100 (100); RSS-5: 97.50 (97.50); ungraded: 94 (94); ISNR 20: 95 (95) and latex 60 per cent: 71 (71).

Govt Weighs Moves To Rein In Sugar Prices - April 29, 2009

New Delhi: Forward Markets Commission (FMC) chairman BC Khatua has said that the government has asked it to keep a watch on the sugar futures market. Khatua told that FMC has already shared the data regarding futures trade in sugar with the government. The committee of secretaries, headed by the Cabinet Secretary, had met in Delhi last week to discuss spiraling sugar prices and measures to control prices.

Sugar futures had jumped 26 per cent in the domestic market but prices have cooled off after recent moves by the government. Two months ago, the government had allowed duty free import of raw sugar. It is also closely monitoring the sale of sugar by companies. For the raw sugar imported by companies, the government decided to do away with the export obligation to improve the availability of sugar in the domestic market. Rumours among traders have indicated that the government could consider a ban on futures trade in sugar, when the Committee of Secretaries met in Delhi last week. FMC chairman was also present at the meeting.

After the recent moves by the government, prices have corrected 7 per cent or nearly Rs 200 per quintal. Despite the fall, sugar futures are still up over 15 per cent since the beginning of the year.

India's sugar production is expected to fall to nearly 15 million tonnes during the current sugar year (sugar year ends on September 30) compared to 26 million tonnes last year. Besides falling production, inventory for the next year is also expected to fall to nearly 3.5 million tonnes, the lowest in 10 years. Worse, since the area under sugarcane cultivation has been falling, the outlook is not expected to improve next year.

Research firm MF Global's sugar analyst Jignesh Kamani wrote in a report that he expects sugar prices to be firm over the next 18 months. "The government's policy focus would be to cap the sugar price increase, rather than take any step to bring the sugar price down," Kamani said in his report.

Karvy Stockbroking's sugar analyst Vikram Suryavanshi expects retail prices for sugar year 2010 between Rs.23-26 per kg. Last year, the government had banned futures trade in rubber, potato and soyabean oil after an unprecedented boom in commodity prices had pushed up domestic prices. Futures trade in wheat, rice and pulses is still not permitted after the ban two years ago.

NCDEX, MCX Impose Special Margin On Sugar Trade - April 28, 2009

In order to deal with the sugar prices volatility at the futures market, MCX and NCDEX, India''s top two commodity exchanges, have imposed special margin on sugar futures with immediate effect. This step was taken on the direction of Forward Markets Commissions (FMC), the commodity market regulator, the sources said.

As per the NCDEX circular, the exchange has imposed a special margin of five per cent on long positions of all running contracts of sugar except for contract expiring in August 2009. Accordingly, the total special margin levied on sugar after the imposition will be 10 per cent on the long side on all contracts except for August, which will remain at 15 per cent.

Similarly, the MCX has fixed a special margin of 10 per cent on both M and S grade of sugar traded on the exchange, the MCX circular said.

Spot Rubber Drops On Top Of International Cues - April 28, 2009

Kottayam: On Monday, the rubber prices closed weak. In spot, a leading tyre manufacturer bought sheet rubber up to Rs 100.50 a kg on early trades but the grade failed to sustain at higher levels due to lack of follow up support. Sheet rubber moved down to Rs 100 (101) on late trades.

RSS 4 fell at its May futures to Rs 98.74 (102.85), June to Rs 95.80 (99.79), July to Rs 92.66 (96.52) and August futures to Rs 89.64 (93.37) a kg on National Multi Commodity Exchange (NMCE).

The May futures for RSS 3 weakened to Yen 147.7 (150) (Rs 76.80), June to Yen 148.2 (151.2), July to Yen 150 (153.6), August to Yen 151.2 (155.2), September to Yen 153.8 (157.3) and October to Yen 154.9 (158) a kg on Tokyo Commodity Exchange (TOCOM).

RSS 3 improved to Rs 80.46 (79.43) a kg on Singapore Commodity Exchange (SICOM). It (spot) slipped to Rs 81.56 (81.76) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4:100 (101); RSS-5: 97.50 (98); ungraded: 94 (96); ISNR 20: 95 (96) and latex 60 per cent: 71 (71).

Castor Price Has Moved Up By Around 10 Per Cent - April 27, 2009

Some signs of correction are seen in physical markets, as arrivals have increased and as demand from stockists is exhausting at prevailing prices. Castor price has moved up by around 10% in the last eight weeks, mainly due to buying by stockists and millers. Demand for castor oil still holds weak, as no major sign of industrial revival is noticed in the major castor oil markets of Europe and China.

Castor seed traded in the range of Rs478-480 per 20kg at major market of Gujarat with arrivals of around 80,000-90,000 bags. On the back of low demand and increasing arrivals, we anticipate some price correction in near term. However, we remain bullish in medium term.

Surat Diamond Exporters Look To Middle East For Growth - April 27, 2009

In the back drop of sharp decline in the demand from US, the diamond sector in Surat is now eyeing other markets like the Middle East. The region has emerged as the leading importer of diamonds this year. Surat depends heavily on the US market and the sudden fall in demand has forced them to target other markets.

UAE imported 31 per cent of India's exports this year, which was a rise of 10 per cent from last year. However, last year, US imported 25 per cent diamonds from India and 20 per cent this year. The net exports of the gems and jewellery industry were down by 18.88 per cent this year from FY 07-08.

The fall in net exports of cut and polished diamonds alone was 30.72 per cent this year. As per the industry experts if there is no recovery by the end of this financial year then there will be drastic consequences for the diamond industry.

Soybean Markets In India Continue To Cues From Global Markets - April 25, 2009

With correction on Chicago Board of Trade (CBoT) bourses, soybean in Indian markets too may correct. Soybean markets in India continue to take cues from international markets of South American and CBoT with the May contract making a new high of Rs2,819 on the National Commodity and Derivatives Exchange of India (NCDEX). Soybean at Indore market is trading around Rs2,650/2,675 per quintal with no major demand for soymeal from South East Asian countries. Arrivals were reportedly higher at 1lakh bags.

Soy meal quoted in the range of USD460-470 FAS Kandla and around Rs24,400/24,600 per tonne FOR Kandla.

On soy oil front, good demand in last couple of days and concerns of tight palm oil supplies in Malaysia have provided positive sentiments to market players. With crude palm oil (CPO) trading around MYR2,550, some profit booking might be seen in weekend, which may pull down the price in India markets too. Monsoons would be a key decider for price this year, as soybean at this price makes it very lucrative for farmers to sow.

Pepper Futures Fall On Bearish Reports - April 25, 2009

Kochi: On Friday, pepper futures market dropped on misinformation that Indian importers have covered large quantities from overseas.

Indian exporters who have committed at lower rates might be trying to discourage the market, market sources said. Some of the overseas reports said that Indian importers have covered 2,000-2,500 tonnes of lower grade Vietnamese pepper. "It is not the volume but the propaganda which is pushing the prices down". May contract fell by Rs 402 on NCDEX to Rs 12,825 a quintal. June and July contracts dropped by Rs 413 and Rs 382, respectively, to Rs 13,010 and Rs 13,211.

Turmeric Quoted In The Range Of Rs 5,200 Per Quintal - April 24, 2009

Steady arrivals were witnessed at major markets of Nizamabad, Erode and Sangli. Turmeric quoted in the range of Rs5,150-5,200 per quintal. Demand from domestic markets has weakened while some exports have been reported. Price has rallied from a low of Rs3,300 to Rs5,700 in a span of four months due to shortfall in domestic production and low international stocks.

We expect some fall in price in near term, as demand has slackened at prevailing price. However, taking a medium-term view would be difficult, as sentiments still appears to be postive. It is only when the arrival season ends and actual demand noticed that a medium-term approach could be taken.

Spot Rubber Improves On Supply Fears - April 24, 2009

Kottayam: On Thursday, the domestic rubber prices made decent gains. The market gained mainly due to supply concerns and any quantity buying might take it above Rs 100, an observer said. Sheet rubber closed up at Rs 98 (95) as traders remained extremely aggressive on the grade.

The May futures for RSS 4 improved to Rs 100.20 (96.35), June to Rs 98.25 (94.48), July to Rs 95.08 (91.43) and August to Rs 92.52 (89.83) a kg on National Multi Commodity Exchange (NMCE).

The April contract for RSS 3 slipped to Yen 143.2 (Yen 145.3) (Rs 72.72) while its May futures improved to Yen 151.5 (Yen 148.6), June to Yen 152.7 (Yen 149.4), July to Yen 154.8 (Yen 151.3), August to Yen 156 (Yen 151.9) and September to Yen 157.8 (Yen 153) a kg on Tokyo Commodity Exchange (TOCOM). RSS 3 weakened to Rs 79.19 (80.03) a kg on Singapore Commodity Exchange (SICOM) while its spot moved down to Rs 81.97 from Rs 82.14 a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 98 (95); RSS-5: 96 (92.50); ungraded: 93 (90); ISNR 20: 92 (91) and latex 60 per cent: 70 (70).

Govt To Keep Watch On Mills Hoarding Sugar - April 23, 2009

In order to control the rise in sugar prices, the government has asked the excise department to keep a watch on the sugar mills to make sure of no hoarding as well as to ensure timely release of the stocks.

This move by the government comes in the backdrop of government's view that mills may be withholding their stocks and not releasing them timely, thereby causing artificial shortage. Moreover, the government has also imposed stock-holding as well as turnover limits for sugar trade. In line with this, it has also directed the state governments to strictly enforce the stock limits announced last month and take strong action against the wrongdoers.

Basmati Exports May Go Up By 40 Per Cent - April 23, 2009

Fall in demand from European and Saudi Arabian markets are offset by rise from Iran and Iraq as basmati rice exports are expected to grow by about 40% in the fiscal ended March 2009. According to an official from Agricultural & Processed Food Export Development Authority, exports in the financial year 09 are expected to have grown to 15 lakh tones from 11.8 lakh tones in the previous fiscal. In value terms the export is expected to be $ 1.5 billion in the fiscal ended January 2009.

According to Anil Mittal, MD, KRBL, India is likely to have exported close to 550,000 tonnes of Pusa1121 to Iran against 300,000 tonnes last year and an additional 75-100,000 tonnes to Iraq. This increase in demand is attributed to price advantage Indian brand enjoys over domestic Iranian brand.

Spot Rubber Perks Up On Short Supply - April 23, 2009

Kottayam: On Wednesday, the domestic rubber prices improved. In spot, the market discounted the heavy losses in Japanese rubber futures and moved up mainly due to acute short supply. The news on rubber imports failed to hit the domestic sentiments as the inflow and production of the raw material hit the bottom lines, an observer said. There were no fresh quotes from the major manufacturers, sources confirmed.

The May futures for RSS 4 moved up to Rs 96.70 (93.97), June to Rs 95.12 (93.12), July to Rs 92.05 (90.70) and August to Rs 90 (89.45) a kg on National Multi Commodity Exchange (NMCE). The April futures for RSS 3 dropped further to Yen 145.3 (153.5) (Rs. 74.73), May to Yen 148.6 (155), June to Yen 149.4 (154.7), July to Yen 151.3 (156.1), August to Yen 151.9 (157.6) and September to Yen 153 (158.1) a kg on Tokyo Commodity Exchange (TOCOM).

RSS 3 improved to Rs 80.03 (79.17) a kg on Singapore Commodity Exchange (SICOM). The grade (spot) slipped to Rs 82.14 from Rs 82.20 a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 95 (92.25); RSS-5: 92.50 (90); ungraded: 90 (88); ISNR 20: 91 (89) and latex 60 per cent: 70 (70).

Soya Oil Too Is Rising In Unison With Soybean - April 22, 2009

Taking cues from overseas markets, the local markets too have risen in tandem. Soyabean at Indore markets is trading around Rs2,750/2,800 per quintal. In futures’ market, soybean has made a new high surpassing the high observed last year and is currently trading around Rs2,750 per quintal. Arrivals too have increased with increase in price and markets now witness arrivals of around 1,00,000 bags as compared to 25,000/30,000 bags last month. Positive sentiments due to drought in Argentina affecting production coupled with increasing demand from China has resulted in the run-up in the prices in the last three months.

The demand for soymeal however remains dull with various industry organisations reducing their export anticipation figures this year to 4 million tonne v/s 4.8 million tonne last year. Soymeal is offered around USD450/460 per metric tonne FAS Kandla.

Soy oil too is rising in unison with soybean. Reduction in palm oil production and stock has resulted in a 10% rise in the prices in the last few weeks. The whole scenario would only be clear with the onset of monsoons.

Pepper Futures Dropped Stridently - April 22, 2009

Kochi: On Tuesday, the pepper futures market observed sharp drop on speculative selling by operators who have been pushing up the market for the past few days. They are booking their position on fear that imported pepper might enter the domestic market and depress the prices in the coming days, market sources said. "Operators who pushed up the market are now getting out by liquidating," they said.

May contract on NCDEX dropped by Rs393 to close at Rs13,112 a quintal. June and July contracts fell by Rs368 and Rs314 respectively to close at Rs 13,330 and Rs13,490 a quintal.

Total turnover moved up by 133 tonne to end at 6,081 tonne while total open interest fell by 126 tonne to 8,229 tonne.

Spot prices in line with the futures market trend dropped by Rs200 to close at Rs12,600 (un-garbled) and Rs13,100 (MG 1) a quintal.

Oil Stocks Runs Out Of Fuel As Crude Tumbles - April 21, 2009

Meanwhile, the BSE Sensex was down 185.68 points, or 1.69%, to 10,793.82. Shares of India's biggest state-run oil exploration firm by revenue Oil & Natural Gas Corporation (ONGC) declined 1.65% to Rs 849. Cairn India dropped 3.34% to Rs 181.10. On BSE, ONGC clocked volumes of 1,560 shares and Cairn India clinched volumes of 4,207 shares.

ONGC underperformed the market over the past one month till 20 April 2009, gaining 14.33% as compared to the Sensex's 22.45% rise. It had outperformed the market in the past one quarter, rising 30.20% as compared to the Sensex's return of 20.65%.

Cairn India underperformed the market over the past one month till 20 April 2009, gaining 6.36% as compared to the Sensex's 22.45% rise. It had outperformed the market in the past one quarter, gaining 22.45% as compared to the Sensex's return of 20.65%.

The fall in crude oil prices would result in lower realizations from crude sales for oil exploration firms such as ONGC and Cairn India. US crude oil prices fell $4.45 or 8.84% to $45.88 per barrel on the New York Mercantile Exchange on Monday, 20 April 2009 as an index of US leading economic indicators fell more than forecast in March 2009. The Conference Board gauge points to the direction of the economy over the next six months and slid 0.3%. The dollar traded near a five- week high versus the euro, reducing the appeal of commodities as an inflation hedge.

US crude oil May 2009 contract expires on Tuesday at the close of trading in New York.

Cairn India reported a net profit of Rs 45.12 crore in Q4 December 2008 as compared to net loss of Rs 54.31 crore in Q4 December 2007. Total income surged 1555.1% to Rs 75.64 crore in Q4 December 2008 over Q4 December 2007.

ONGC's net profit fell 43.3% to Rs 2474.81 crore on 17.8% increase in net sales to Rs 12436.43 crore in Q3 December 2008 over Q3 December 2007.

Spot Rubber Drops Going On Large-Scale Cues - April 21, 2009

Kottayam: On Monday, the spot rubber reported decline. The sentiments were strongly affected by the sharp drop in global rubber prices and the lack of support from major manufactures. Sheet rubber fell to Rs 92.25 from Rs 95 a kg during the last weekend. The market made all-round declines on selling from dealers and growers.

The May futures for RSS 4 closed at Rs 91.30 (91.63), June at Rs 90.61 (90.50), July at Rs 88.16 (87.84) and August at Rs 87.50 (88) a kg on National Multi Commodity Exchange (NMCE).

RSS 3 dropped sharply at its April futures to Yen159.3 (167.3) (Rs 81.13), May to Yen 162 (169.1), June to Yen 162.4 (168.6), July to Yen 162.8 (168.9), August to Yen 164.2 (171.2) and September to Yen 165.5 (171.3) a kg on Tokyo Commodity Exchange (TOCOM).

RSS 3 weakened to Rs 82.39 (84.83) a kg on Singapore Commodity Exchange (SICOM). It (spot) closed unchanged at Rs. 82.08 a kg at Bangkok.

Forward Markets Commission Eases Fears On Rising Potato Prices - April 17, 2009

Forward Markets Commission (FMC), the commodity futures market regulator is confident that the tilt between spot and futures prices in potato will end once the diversion from physical markets to cold storage overturns. The regulator had recently asked MCX and NCDEX to look into the rise in potato, sugar, turmeric and rubber to observe that over-speculation in these commodities had not led to runaway prices.

"We were particularly concerned about a 15% discrepancy between spot and futures prices in potato. The futures of the other three commodities are simply reflecting the spot market fundamentals and the skew between spot and futures of potato was not as much in the other commodities," said BC Khatua, chairman FMC.

Coffee Exports Decline On Low Demand - April 17, 2009

ndian coffee exports have reported considerable fall so far this year mainly due to low demand led by the present global economic slowdown.

Shipments from the country from January 1 to April 13 dropped by 13,912 tonnes to 63,184 tonnes, including 13,891 tonnes of instant coffee, from 77,096 tonnes, including 20,513 tonnes of instant coffee, during the corresponding period previous year.

Industry sources accredited the fall to the existing economic turmoil. They said that the drop was mainly in the high-cost instant coffee segment following a reported shift from the high cost to low-cost products.

According to the International Coffee Organisation, "problems in the availability of supplies of Colombian Milds have supported firm prices for this group of coffee, with the indicator price for this group reaching high levels in March and early April".

Rubber Board Asks FMC To Curb Volatility In Price - April 17, 2009

In order to curb the rubber prices volatility in futures markets, the Rubber Board has asked the market regulator Forward Markets Commission (FMC) to reverse the price fluctuation limit to 2%. FMC sets the price fluctuation limit to regulate the prices. The trading will stop if the price go beyond the set limit.

However, earlier the rubber price limits stood at 2-3%, but later it was extended to 4%, when rubber prices fell drastically below Rs 60 a kg. Recently the Automotive Tyre Manufacturers Association (ATMA), an apex tyre manufacturers body, had sought an immediate rollback of the circuit limit to 2% due to the huge distortion in the market by certain speculators. The futures prices of rubber for May delivery on the NMCE platform shot up by 29% to Rs 100 a kg on Thursday from Rs 77 a kg on January 16.

To contain the rise in prices, the government in May 2008 had banned futures trading in the commodity, but later in December lifted the curb.

Spot Rubber Declines On Futures Cues - April 16, 2009

Kottayam: On Wednesday, spot rubber turned weak. According to sources, prices slipped mainly due to the fall in domestic futures on NMCE during late hours on last Monday. Sheet rubber weakened to Rs 99 from Rs 100 a kg with low volumes.

RSS 4 improved at its April futures to Rs 99 (98.50), May to Rs 100.80 (99.42), June to Rs 99.45 (97.74) and July to Rs 96.60 (95.01) a kg on National Multi Commodity Exchange.

The April future for RSS 3 dropped to Yen 169 (169.3) (Rs 84.44) a kg while its May futures improved to Yen 171.9 (171.2), June to Yen 173.2 (172.1), July to Yen 174.4 (172.8), August to Yen 175.2 (173.4) and September futures to Yen 176.8 (174.4) a kg on Tokyo Commodity Exchange (TOCOM). RSS 3 moved down to Rs 84.98 (85.65) a kg on Singapore Commodity Exchange (SICOM).

Spot rates were (Rs/kg): RSS-4: 99 (100); RSS-5: 97.50 (99); ungraded: 95 (97); ISNR 20: 95.50 (97) and latex 60 per cent: 73 (73).

Vegetable Oil Imports Up 28 Per Cent In March - April 16, 2009

Vegetable oil imports raised 28 per cent in March as compared to the same period a year ago but the rate of the shipments in to the country slowed down compared with the previous three months.

According to the Solvent Extractors Association of India, vegetable oil imports went up to 6.41 lakh tonnes, including 6.09 lakh tonnes for edible purpose, against 5.02 lakh tonnes a year ago.

Vegetable oil imports increased 144 per cent in December, 73 per cent in January and 48 per cent in February.

Exports Of Turmeric Are Expected To Cross The Set Target - April 16, 2009

Kochi: Exports of turmeric in 2008-09, are expected to cross the set target of 50,000 tonnes in quantity and Rs 160 crore in value. The increase is likely despite the global economic recession together with higher prices of the commodity following short supply. Total shipments during April-February of last financial year touched 49,000 tonnes valued at Rs 226.30 crore as against 44,360 tonnes valued at Rs 137.93 crore in the corresponding period in 2007-08.

Going by the trend, the total exports would have crossed the target, according to the sources. The average unit value in 2008-09 has increased to Rs 46.18 a kg from Rs 31.09 a kg in 2007-08 due to short supply.

Vietnam Pepper Prices Up A Spot On Regulated Arrivals - April 15, 2009

On Tuesday, Vietnam pepper market has shown small improvement on regulated arrivals. According to market sources, Vietnam is said to have already made the primary sales to meet the farmers' financial requirements.

Now they don't have to go for a selling spree as there is no need for money from pepper sales when it is available from the sales of coffee and other items. They have now resorted to release only in a regulated manner so as to keep the prices moving up, they told Business Line.

Vietnam has quoted 500 GL at $1,900 a tonne (f.o.b.) while 550 GL at $2,050 a tonne (f.o.b.). V Asta was offered at $2,200 a tonne (f.o.b.). Indonesia has offered L Asta at $2,200 a tonne (f.o.b.) while Brazil said to have quoted B Asta at $2,100 a tonne.

The Indian pepper market was closed on account of Dr Ambedkar Birthday and Vishu in Kerala. Indian parity was at $2,500 a tonne (f.o.b.) and remained totally out-priced.

Chilli Development Beat To The Increase Of Syndrome - April 15, 2009

The second major crop in Ramanathapuram district of Tamil Nadu, Chilli, has been affected due to the spread of the disease 'aphids'. According to Mr J. Rajendran, Assistant Director, Horticulture, and Mr Kamaludeen, Assistant Director, Agriculture, Thirupullani Block, the disease is caused due to the change in the climate and existing high level of humidity.

The farmers have been advised mass integrated pest management. The crop has been raised in 26,856 hectares, against a normal coverage of 22,000 hectares, according to sources.

Jewellery Operate Devices Neat Card To Verify Character - April 15, 2009

The All India Gems and Jewellery Trade Federation planning to issue 'smart card' to the jewellers and their staff with the objective of confirming the jewellers' status. It will also make easy movement across India.

"This will be a regular smart card which will have all the information about the individual, company, association with GJF and other technical details," said GJF outgoing chairman Ashok Minawala.

According to him, there are a number of safety and risk-related issues when ornaments are carried or collected by the jeweller or any of the staff members.

"With the smart card, the authorities can establish that the valuables belong to a bonafide person," he added.

Now, there will be two to three call centres established in different regions. "In the first phase which will start from next month, we will issue smart cards to 10,000 jewellers and their staff. This will be followed by another 100,000 in the second phase," Mr Minawala added.

The jeweller will have to meet the criteria on certain parameters such as quality, price and service.

With the recession and high prices taking a toll on the Rs 80,000 crore gems and jewellery sector, the industry is taking measures to restore it by improving the productivity and profitability.

Cardamom Maintains Rising Progress On Tight Supply - April 14, 2009

Cardamom prices sustained their upward movement with good domestic buying support on tight supply, particularly on account of holidays, with the individual average price rising up to Rs 585 a kg on Wednesday last.

At the CPA auction on Monday (April 13), 24 tonnes of cardamom arrived and the whole quantity was sold. However, the average price at Monday's auction was at Rs 549 a kg. The trading sources accredited this fall from other auctions held last week to the comparatively lesser quality of the material. However, the average price has showed development from Rs 536.76 a kg last Monday.

Spot Rubber Remains Firm On All-Round Gains - April 14, 2009

Kottayam: On Monday, the physical rubber prices ruled firm. The market reported all-round gains as the domestic and international indices had a positive start but a late weakness in NMCE rubber futures kept the grade under pressure during the afternoon session. Sheet rubber closed unchanged at Rs 100 a kg on buyer resistance. There were no fresh quotes from major consuming industries.

RSS 4 declined its April futures to Rs 98.50 (100.56), May to Rs 99.45 (100.44), June to Rs 97.60 (99.18) and July to Rs 95.00 (96.53) a kg on National Multi Commodity Exchange (NMCE).

The April futures for RSS 3 improved to Yen 173.4 (170.1) (Rs 86.03), May to Yen 175.6 (173), June to Yen 176.5 (172.3), July to Yen 177.8 (174), August to Yen 178.6 (175.3) and September to Yen 178.2 (174.3) a kg on Tokyo Commodity Exchange (TOCOM).

Spot rates were (Rs/kg): RSS-4: 100 (100); RSS-5: 99 (97); ungraded: 97 (95); ISNR 20: 97 (96) and latex 60 per cent: 73 (72).

Pepper Futures Maintain Increasing Movement - April 14, 2009

Kochi: On Monday, the pepper futures market continued its northward journey on good domestic demand. Fewer arrivals along with underlying interest from domestic operators pushed up the market. April contract increased by Rs 263 to close at Rs 12,400 a quintal. May and June increased by Rs 280 and Rs 239 respectively to close at Rs 12,600 and Rs 12,830 a quintal.

Total turnover went up by 3,020 tonnes to close at 7,090 tonnes. Total open interest moved up by 53 tonnes to 6,465 tonnes. April NOP dropped by 356 tonnes to 1,252 tonnes. May and June moved up by 333 tonnes and 70 tonnes. Spot market shot up Rs 200 a quintal to close at Rs 11,900 (un-garbled) and Rs 12,400 (MG 1).

Government Allows Duty Free Import Of One Million Tonne Sugar - April 13, 2009

As the sugar output of India is expected to touch four year low, the government has allowed government agencies like MMTC as well as STC, NAFED and PEC to import one million tonne of white sugar duty-free. Moreover, the export obligation on raw sugar imports under open general licence scheme has also been removed.

"No levy or release mechanism will be imposed on the imported sugar. We expect this move to augment domestic availability and cool prices. With the decline in crude prices, Brazil, the largest sugar producer, plans to divert a significant quantity of sugarcane from ethanol to sugar. This will improve international supplies," said official sources.

The shortage of sugar follows two years of oversupply, when the government had to provide mills with export assistance. The government earlier this year had allowed duty-free imports of raw sugar, but with an export obligation.

As per the latest projections by Indian Sugar Mills Association (ISMA) that show that the sugar production in India is likely to be 14.5 million tonnes in the current sugar year (October-September), which is down over 45 per cent from 26.5 million tonnes in the last year. However, along with the opening stock of 8 million tonnes as well as raw sugar imports of 1.5 million tonnes, the season's availability will be 24 million tonnes, as against the consumption of 22.5 million tonnes.

Speculation' Stretches Rubber To Rs 100 Kilo Gram - April 13, 2009

Chennai: Prices for RSS-4 (ribbed smoked sheet grade 4) rubber hit Rs 100 a kg during the weekend. Consequently, there was agreed opinion about the existing run in the commodity.

Specifically, prices of natural rubber have been driven up 48 per cent in two months and 36 per cent in a month by absolute assumption. Renewal of futures in the commodity is also considered as one more reason for the existing run.

"There is no fundamental reason for rubber to hit Rs 100 a kg now. Compared with last year, we have an exceptionally good production. On the other hand, consumption is almost stagnant by tyre and non-tyre sectors. With ending stocks last fiscal nearly double that the previous year, rubber is not worth the price the market quotes now," said Mr Rajiv Buddhiraja, Director-General of the Automotive Tyre Manufacturers' Association (ATMA).

Metals And Real Estate Would Earnings Decline By 86-90 Per Cent - April 10, 2009

Mumbai: The Indian equity market is likely to see one of its worst phases, with most sectors expected to report a decline in earnings or single-digit earnings growth in Q4 FY'09, a leading broking firm said in its report.

Banking would be the best-performing sector with earnings growth of 16 per cent YoY. While metals and real estate would see earnings decline by 86-90 per cent year-on-year (YoY), other sectors with steep earnings decline would be autos and pharma, broking firm Motilal Oswal's India Strategy report said.

Quarter-on-quarter (QoQ) trends are divergent from YoY trends for a few sectors. Banking and FMCG will report a QoQ decline in earnings, while auto and cement will witness a growth, it said.While the monetary policy has eased significantly in H2 FY'09, credit demand has slowed down to 18 per cent.

As the recovery in earnings momentum will take time, attractive valuations remain the key driver for the stock market at the current level, Motilal Oswal Director - Research Rajat Rajgarhia said in Mumbai.

Domestic inflows will continue to drive institutional interest in equities, any change in the FII flows will create meaningful impact on Indian equities, the report said.Recent business trends have surprised positively.

Several sectors that reported significant drop in business momentum in Q3 FY'09, have witnessed a strong recovery in Q4 FY'09, the report states. Over the last three months, we have witnessed consistent upgrades in our volume estimates for autos, cement, wireless and steel, among others, Rajgarhia said.

This is reflected in higher QoQ earnings estimates for most of these sectors. While a part of this upstick is a reflection in pre-election spending and completion of projects, the various stimulus packages and RBI measures have also aided the positive surprises in volumes.

The Auctions Of Coonoor Tea Trade Association To Held On - April 10, 2009

Coonoor: An analysis of brokers' catalogues reveals an augment for the second consecutive week in the offer for the auctions of Coonoor Tea Trade Association to be held on Thursday and Friday. This is the 15th auctions of 2009. Overall, 7.24 lakh kg would be offered, which is around 15,000 kg more than last week's offer.

However, the volume continues to be low compared to last year. 10.56 lakh kg was offered for sale during corresponding period of previous year.

In the volume of 7.24 lakh kg, fresh tea comprises 6.85 lakh kg. The balance comprises teas remaining unsold in previous auctions.

Black Pepper Prices Have Increase Of 15-20 Per Cent - April 09, 2009

Kochi: Black pepper prices have reported increase of 15-20 per cent during the past few weeks. On Wednesday, it touched Rs 122 per kg. The stretched supply conditions are expected to haul up the prices further. According to industry spokesmen, the arrivals into the market have dropped considerably in the current year. "It is not even 10% of the previous year's level," they said.

Initially, the production of pepper for the present year was expected at 45,000 tonnes. However, at present trade and industry sources say that the production would be in the range of 40,000 tonnes. The price of Indian pepper on the international market has touched $2,600 per tonne. A few weeks back it was in the range of $2,100-2,200 per tonne.

Spot Rubber Turned Weak - April 09, 2009

Kottayam: On Wednesday, spot rubber remained weak. Domestic market was under pressure on drop in trend setting in Japanese futures and the continuous holidays in front. Sheet rubber moved lower to Rs 94 from Rs 95 a kg on buyer resistance. The trend was mixed.

The manufacturers are trying to bring down the rubber prices purposely, while in futures trading it is inflated unreasonably, said Adv Joy Nadukkara, President of the Meenachil Rubber Marketing and Processing Cooperative Society Ltd.

The April futures for RSS 4 ended at Rs. 93.14 (92.59), May at Rs. 92.99 (93.14), June at Rs. 92 (91.73) and July at Rs. 89.50 (89.04) a kg on National Multi Commodity Exchange (NMCE). RSS 3 weakened with April futures down to Yen 164.1 (Yen 169.5) (Rs. 82.77); May to Yen 165.8 (Yen 171.6), June to Yen 165.8 (Yen 172.3), July to Yen 167.0 (Yen 172.4), August to Yen 167.4 (Yen 173.2) and September to Yen 167.7 (Yen 174.7) a kg on Tokyo Commodity Exchange (TOCOM). The grade closed firm at Rs. 81.95 (79.21) a kg at Bangkok.

Physical prices (Rs a kg) were RSS-4: 94 (95); RSS-5: 92.50 (92.50), ungraded 90 (91); ISNR 20: 90 (91) and latex 60%: 70 (69).

Global Turmoil Knocks Indian Diamond Jewellery Manufacturers - April 09, 2009

The global economic turmoil knocks Indian diamond jewellery manufacturers. Rating agency Crisil has reduced the grades of bank loan rating (BLR) of 10 diamond and jewellery manufacturing companies and reaffirmed its rating on 14 others.

The companies which have been downgraded are Shreeji Jewellery, Shreeji Jewellery Designs, Fine Jewellery Manufacturing, D.A. Jhaveri, Kama-Schachtrer Jewellery, M Suresh Company, M Suresh Jewellery, Mohit Diamonds, Rosy Blue (India) and S Narendra.

The jewellery manufacturers whose rating has been reaffirmed are Tribhovandas Bhimji Zaveri, Joy Alukkas Traders, Su-Raj Diamond Industries, Su-Raj Diamond and Jewellery, S Vindokumar Diamonds, Star Rays, Radium Creations, PC Jewellers, Jasubhai Jewellers, H Dipak & Co, Forever Precious Jewellery and Diamonds, Blue Star Diamonds, Aurostar Jewellery and Arjav Diamonds.

The rating reflects the amount of risk linked with timely payment of interest and repayment of principal on a specified bank facility.

Slow Output Growth, Demand Sustain Rubber Prices - April 08, 2009

The rubber price, which reached the lower level of Rs 60 a kg in January, has crossed Rs 80-mark at present. The rise in price is backed mainly by slow speed in production and the increasing demand from the manufacturing sector. The rubber growers are happy increase in price.

It was reported that there was six per cent drop in rubber production during December-January. In the meantime, the demand for natural rubber in the domestic market is rising and the availability is reducing.

The arrivals of sheet rubber were very slight in major markets after suspension of tapping. Exchange rates shot up and import appeared to be unattractive. The manufacturers had, therefore, no other option except to obtain from the domestic market. In Kerala, only very few have sheet rubber stocks.

Sugar Output Seen Dropping To 4-Year Low - April 08, 2009

Chennai: At present, sugar production is expected around 45 per cent lower at 14.2 million tonnes during the current season ending September compared with last year's 26.4 million tonnes. Sugar output is likely to fall to 4 year low with crushing of cane by sugar mills almost coming to an end.

"Sugar production is estimated further down due to lower availability of sugarcane, its diversion to competing sectors such as gur and khandsari and lower recovery," said Mr S.L. Jain, Director-General of the Indian Sugar Mills Association (ISMA).

This would be the lowest production since 2004-05, when 12.7 million tonnes were produced. However, trade sources estimate the production to be around 15 million tonnes.

"Things have changed drastically. We now find that hardly 2-3 sugar mills are crushing in western Uttar Pradesh," Mr Jain said.

Short Supply On Spot Rubber Gains - April 08, 2009

Kottayam: On Tuesday, physical rubber prices sustained to look at further highs. Another sharp rise in TOCOM rubber lifted the domestic sentiments up. During the trading, attitude was aggressive on sheet rubber despite the news of sufficient stock. The grade improved to Rs 95 from Rs 92.50 a kg.

According to observers the market continued to suffer from acute short supply. What happens in the market is based on the speculative tendency of the traders, according to Mr. N.Radhakrishnan, President, Cochin Rubber Merchants Association Rubber Board says that there is sufficient stock now.

In the international scene, RSS 3 flared up further at Its April futures to Yen 169.5 (Yen 163.5) (Rs 84.57), May futures to Yen 171.6 (Yen 166.5), June to Yen 172.3 (Yen 167.8), July to Yen 172.4 (Yen 168.4), August to Yen 173.2 (Yen 168.7) and September futures to Yen 174.7 (Yen 169.9) a kg on Tokyo Commodity Exchange (TOCOM).

Spot rates were (Rs/kg): RSS-4: 95 (92.50); RSS-5: 92.50 (90); ungraded: 91 (89); ISNR 20: 91 (88) and latex 60 per cent: 69 (68).

Rates Of Least Seven Agricultural Rule Lower Than Support Price - April 07, 2009

Chennai: Rates of least seven agricultural commodities' prices are ruling lower the minimum support price (MSP). The MSP is fixed for them by the government for the existing crop year ending June. A few other commodities such as nigerseed appear to have recovered after ruling below MSP in March.

In addition, there are a few other commodities for which farmers are not getting the MSP uniformly all over the country, with groundnut (in Andhra Pradesh) being a case in point. Paddy, wheat, maize, ragi, cotton, copra and sunflower are products that are ruling below MSP, according to Agriculture Ministry data. The reason for the prices to rule below MSP is bulging stocks and ample production.

Guarseed, Jeera Gain On Demand - April 07, 2009

Mumbai: Guarseed futures on a strong note on NCDEX traded for the fourth consecutive session on constant demand from China. While prices in Jodhpur spot markets increased by Rs 30 to Rs 1,740 a quintal, it rose by Rs 40 to Rs 1,630 a quintal in Bikaner.

Traders bought aggressively to meet export demand from China. "In NCDEX futures April counter, immediate resistance is seen at Rs 1,850 and support is at Rs 1,690," said Mr Tarun Satsangi, Assistant Vice-President, Bonanza Commodity Broker.

Encouraging demand and lack of good quality crop led higher jeera prices in the spot market as supply was low. Jeera crop this year may fall 15 per cent compared with last year due to adverse weather during the harvest season, according to trade sources. "In NCDEX April futures, immediate resistance is seen at Rs 13,112 and support is at Rs 12,370," he said.

Darjeeling Tea Industry On Financial Crisis Is Disturbing - April 06, 2009

The global economic crisis has net left to clutch the Darjeeling tea industry also. The premium first flush teas, which become accessible in the market from March, have obtained 25 per cent lower price markets this year in the European. In 2008, the Darjeeling tea had brought Rs 1,250 per kg but this year it has gone down to Rs 937.50 per kg.

Sanjay Bansal, chairman of Darjeeling Tea Association said, said, "Nearly 85% of high quality first flush tea is exported to European nations. Germany is one of the biggest buyers of Darjeeling tea. Since there is a liquidity crunch in the European countries, the buyers are not keen to pay last year's prices." Incidentally, the premium first flush and second flush teas are major revenue earners for Darjeeling tea industry.

Volume Increases At Coonoor Tea Auction - April 03, 2009

Coonoor: A study of the catalogues of the brokers disclosed rise in the offer for Sale No: 14 of the auctions of Coonoor Tea Trade Association (CTTA). In all, 7.09 lakh kg would be offered. This is some 28,000 kg more than last week's offer. But, the volume continues to be low compared to last year. This time last year, 9.08 lakh kg was offered for sale.

In the volume of 7.09 lakh kg, fresh tea comprises of 6.29 lakh kg. The balance accounts for teas remained unsold in earlier auctions. Out of the 7.09 lakh kg on offer, 4.99 lakh kg belong to the leaf grades and 2.10 lakh kg belongs to the dust grades. In so far as 6.53 lakh kg belongs to CTC variety and only 0.56 lakh kg, orthodox variety.

Droop Pulls Coffee Exports Lower By 8 Per Cent - April 03, 2009

India's coffee exports reported drop of 8 per cent in volume terms in 2008-09 even though posted better the performance in value terms. Coffee exports in 2008-09 stood at 2.04 lakh tonnes (provisional) against 2.22 lakh tonnes in FY2008, reflecting its second lowest performance in the previous four years.

But, coffee exports have seen higher dollar earnings at $ 521 million in 2008-09 compared to $ 512 million in FY2007-08. A senior official with Bangalore-headquartered Coffee Board said lower off take reflected a hold back in demand from the developed world as fallout of the global economic recession. "Soluble (instant) coffee exports were hit as markets like Russia and Ukraine have been reeling under the impact of the global economic slowdown," the official said.

Rise Continues In Cloves Prices - April 03, 2009

The cloves market sustained to report an increase in prices, due to huge drop in supply on crop failure in the country and other origins, and the same trend may continue in coming days. This week prices went up by Rs 15 a kg and it is likely to increase by Rs 25-50 a kg in a month's time, major trading sources in the commodity said.

The reasons credited to the sharp rise are "shortages of cargo and strict vigil at all ports, particularly Kochi, Tuticorin, Chennai and Delhi ICD, which has stopped fraudulent activity in cloves imports". There has been significant loss of crop and as a result the total Sri Lankan crop was only 10 full container load (fcl), they said.

Government Cuts Minimum Export Price Of Onion - April 02, 2009

New Delhi: The government has cut the minimum export price of onion for the second time in less than 20 days by USD 25 a tonne to an average of USD 195-200, as higher supply of summer crops eased prices in the domestic market.

With this, the MEP of onion has been slashed by a whopping USD 125 a tonne since March 13 after domestic availability of the commodity started rising. Nafed is the nodal agency for onion export, which decides the MEP every month in consultation with 12 other agencies, taking into account domestic availability and prices.

Over 70,000 tonnes of onions were flooding the market everyday in Nashik, a major growing region in Maharashtra, last week. High supply of rabi onions are easing pressure on the prices, he said, adding rates of the commodity will reduce further with the arrivals of more onions in the coming days. Wholesale prices of onion in Lasalgaon, the country's largest onion trading hub, moderated to Rs 501 per quintal on March 25 from Rs 901 on March 2, providing some leeway for Nafed to cut the MEP. Wholesale prices in Delhi eased to Rs 700 a quintal on Tuesday from Rs 1,210 on March 2.

Tea Prices May Increase10 Per Cent This Fiscal - April 02, 2009

Kolkata: Tea prices this fiscal are probable to increase 10-20 per cent as compared to last year's closing prices depending on the weather condition impacting production and the domestic demand, according to Mr Aditya Khaitan, Chairman, Indian Tea Association (ITA). As it is, the year has started with no carryover stocks.

Mr Khaitan revealed that the prices must remain firm for next few years as it was significant for long-term viability of tea industry. The unremunerative prices in past few years left industry without benefit to plough back.

Consequently, there was hardly any investment either to uproot old bushes or modernize the factories and take other necessary steps to increase production. Most garden-owners had to borrow to cover costs, the tea being a fixed cost industry. Now that the prices were showing an upward trend, the owners should be able to make some investments in their properties to boost production, he said.

High Coffee Prices Drive Away Traditional Buyers - April 02, 2009

Bangalore: Traditional buyers from Europe and Russia are changing away from Indian coffees hit by high prices due to the economic crisis. Coffee exports for fiscal 2009 slipped to 2.04 lt against 2.22 lt in the previous year. For the January-March quarter, exports were at 55,811 tonnes compared with 70,162 tonnes in the corresponding last year.

A lower crop due to unfavorable climatic conditions has resulted in increased coffee prices. As a result, the Indian coffee exports have dropped by a fifth in the January-March quarter, while the shipments were down by eight per cent for the fiscal ended March 31.

"The prices we are asking are above international parity. Obviously, regular customers from countries such as Belgium are not willing to pay in a recessionary environment," said Mr Ramesh Rajah, President of All-India Coffee Exporters Association.

Metel Shares Rally As Copper Soars - April 01, 2009

At 12:17 IST, the BSE Metal index was up 1.55% at 5,884.90. It outperformed the Sensex, which rose 0.52% at 9,758.86. The BSE Metal index had outperformed the market over the past one month till 30 March 2009, rising 23.54% as compared to the Sensex's 9.19% rise. It had also outperformed the market in the past one quarter, rising 11.14% as compared to the Sensex's gain of 0.63%.

Jindal Steel & Power (up 0.10%), National Aluminium Company (up 1.38%), Steel Authority of India (up 1.40%), Hindalco Industries (up 1.83%), Sterlite Industries (up 1.50%), Sesa Goa (up 1.74%), Tata Steel (up 2.72%), Welspun Gujarat Stahl Rohren (up 3.09%), Hindustan Zinc (up 3.71%), rose.

Shanghai copper rose more than half a percent on Wednesday, but less than a 3% rise in London on Tuesday, 31 March 2009. Shanghai copper for June delivery rose 230 yuan to 33,750 yuan a tonne today. LME copper prices rose 32% in the first three months of the year, their biggest quarterly rise since June 2006. The rise followed a decline of more than 50% in the last quarter of 2008.

Shanghai Copper's 41% quarterly surge was the biggest on record. Meanwhile, shares of steel firms extended recent gains on reports Indian steel makers are witnessing a revival of demand following improved consumption from sectors such as construction and automobiles.

Govt Releases Additional 2 Lakh Tonne Sugar For April-June - April 01, 2009

On Tuesday, the government allocated 54 lakh tonnes of sugar for the April-June quarter of the 2009-10 fiscal, which is two lakh tonnes more as compared to the corresponding period of the previous year. During April-June 2008 the allocation was 52 lakh tonnes, which included eight lakh tonnes from the buffer stock, an official statement said.

According to the experts, the higher allocation has been made to keep sugar prices under check during the elections, which will end in May 13. It has billed 19.5 lakh tonnes of sugar for April and 18.5 lakh tonnes for May. The availability for June will however be lower at 16 lakh tonnes.

Increase in allocation is in spite of lower estimates of production in the current season, ending September 2009. As per the industry estimate sugar production is likely to decline to 150 lakh tonnes against 264 lakh tonnes in 2007-08 season.

Out of the entire allocation of 54 lakh tonnes, 47 lakh tonnes would be normal non-levy free sale quota while six lakh tonnes would be available from dismantled buffer stock and one lakh tonnes as carry-over stock from the previous year.