Wheat Price Of The Underlying Supportive Demand - August 31, 2009

Supportive underlying demand despite a delay in the government supply has cushioned the price of wheat at the benchmark market of Delhi. The price of wheat is being quoted in the range of Rs1,150/55 per quintal. Once the government releases the stock in the market, we could see an impact on the price. Wheat production last year was at record 80.5 million ton.

We expect wheat’s price to trade steady to weak in the coming trading sessions driven by concerns of stock offloading by government and cushioned by domestic demand.

Markets Of Chana Price A Steady To Weak Trend - August 31, 2009

A steady to weak trend was observed at the Delhi and Indore markets of chana. Arrivals of chana at the Delhi markets were reported at 35 trucks while the price was quoted in the range of Rs2,300/2,310 per quintal. Similarly, arrivals of about 4,000 bags were reported at the Indore markets and the price quoted for Kantawala chana was in the range of Rs2,150/2,170 per quintal.

We expect the price to soften in the coming days as supplies would increase due to the imposition of stock limit and last year’s bumper output.

Jeera Exports Demand From The Local Markets On The Last Day - August 31, 2009

The demand from the local markets as well as Bangladesh was featured at the benchmark Unjha market of Gujarat. Arrivals on the last day of the week were at 5,000 bags while business of about 10,000 bags was concluded following a surge in demand.

Export demand from the USA and Europe continued to be weak which can be seen from the fact that export of jeera in the first four months of FY2010 was down by 15% and is expected to fall in the coming days due to a fair crop in Turkey/Syria this year.

The spot price of NCDEX quality is in the range of Rs11,800/11,900, down 1% as compared to that earlier in the day. We expect the price to correct in the coming week due to lower export demand.

Chana Price To The Lower At Fall - August 28, 2009

News of stock limit in Madhya Pradesh garnered panic situation in chana, thereby rendering a fall in the price to the lower freeze. Arrivals of 35 trucks were reported at the Delhi markets while the price of desi chana quoted in the range of Rs2,275/2,300 per quintal.

The price of Kantawala chana at Indore markets was quoted at around Rs2,200 per quintal amid arrivals of 3,000 bags.

We expect the bearish undertone in chana to continue in the coming days too, well supported by the rumours of stock limits and higher arrivals at the major markets.

Spot Rubber Promote Increase - August 28, 2009

Kottayam: On Thursday, physical rubber prices improved further, as sentiments were bullish after market moved sharply above the critical resistance levels though the major manufacturers remained inactive in most of the trading sessions.

According to observers, traders from the domestic rubber futures were also active on sheet rubber. The grade flared up to Rs 106 from Rs 104.50 a kg on fresh buying and short covering.

RSS 4 improved at its September futures to Rs 107.50 (107.36), October to Rs 108.40 (108.37), November to Rs 109.20 (109) and December to Rs 110.25 (109.67) a kg on National Multi Commodity Exchange (NMCE).

The September futures for RSS 3 ended at Yen 194.3 (Yen 196.3) (Rs 101.42), October at Yen 195.9 (Yen 196.3), November at Yen 198.1 (Yen 198.5), December at Yen 201.3 (Yen 201.3), January at Yen 204.3 (Yen 204.1) and February at Yen 206.8 (Yen 206.8) a kg during the day session on TOCOM.

The December futures firmed up marginally to Yen 201.4, January to Yen 204.7 and February to Yen 207.1 a kg while the September, October and November futures were inactive on late trades.

RSS 3 closed better at Rs 103.64 (103.01) a kg on Singapore Commodity Exchange (SICOM). The grade improved to Rs 102.57 (101.45) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 106 (104.50); RSS-5: 103 (102); ungraded: 101 (99.50); ISNR 20: 96.50 (96) and latex 60 per cent: 76.75 (76).

H1 Tea Significance Demand For Payment 26 Crore Increase - August 28, 2009

Coonoor: The country's tea import bill continued to go up in June. It had increased by Rs 25.57 crore in the first half of calendar 2009 as compared to the same period of previous year. An analysis of the latest data available with Tea Board explained that this was because a higher volume was imported paying a higher price.

10.32 million kg were imported against 8.21 million kg between January and June. An average price of Rs 83.39 a kg, almost Rs 10 more, was paid than last year. Overall, the import bill totaled Rs 86.08 crore against Rs 60.51 crore in 2008.

Spot Rubber Witnesses Gains - August 27, 2009

Kottayam: On Wednesday, the domestic rubber prices went up. In spot, the market improved following the sharp gains on NMCE. A firm closing in international indices improved the sentiments further and sheet rubber moved up to Rs 104.50 from Rs 103 a kg mainly on covering purchases.

The September futures for RSS 4 gained sharply to Rs 107.23 (104.53), October to Rs 108.40 (105.79), November to Rs 109.19 (106.68) and December to Rs 109.37 (107.51) a kg on National Multi Commodity Exchange (NMCE).

RSS 3 firmed up at its September futures to Yen 196.3 (Yen 190.9) (Rs 102.03), October to Yen 196.3 (Yen 193.8), November to Yen 198.5 (Yen 196.7), December to Yen 201.3 (Yen 199), January to Yen 204.1 (Yen 201.5) and February to Yen 206.8 (Yen 202) a kg during the day session on TOCOM.

The October futures for the grade closed at Yen 196, November at Yen 199.5, December at Yen 202.3, January at Yen 205 and February at Yen 207.5 a kg while the September futures remained inactive during the night session.

RSS 3 improved to Rs 103.01 (101.12) a kg on Singapore Commodity Exchange (SICOM). The grade closed better at Rs 101.45 (100.58) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 104.50 (103); RSS-5: 102 (101); ungraded: 99.50 (99); ISNR 20: 96 (95) and latex 60 per cent: 76 (76).

Black Pepper Price Continues In Higher Arrivals - August 27, 2009

The correction in the price continues in pepper with the price correcting by another 3% in yesterday’s trading session. Higher arrivals at high price coupled with lower demand at higher price resulted in a decline in the price. Arrivals of pepper were reported at 400 quintal while the offtake was only about 250 quintals.

The price quoted for Malabar grade garbled pepper was at Rs14,500 per quintal while ungarbled pepper was quoted at Rs14,100 per quintal.

Export price too has come down from USD3,300 PMT to USD3,100 PMT FOB. As per industry sources, the US and the UK, the major buyers of black pepper, have reportedly halted their imports due to a high price. A lull in demand from the international market could hamper the price in the coming months.

Soy Crop Weather And Positive Crop Of Development - August 27, 2009

Soyabean exports supportive weather and positive crop development report from the USA put to rest the ongoing speculation of early frost affecting the soy crop. Weather in the coming days would be critical as any major adversities could have an effect on the productivity.

Winding of longs too was witnessed on CBOT bourse on positive crop development. November beans closed at 996 cents/bushel while soy oil and soy meal for December delivery closed at 37.09 cents/pound and USD298.50/short tone.

Indian market review: Fair rains in Madhya Pradesh and Vidharbha regions coupled with weak clues from the USA hampered the price of soybean in Indian markets too. Arrivals were reported at 40,000 bags while the price was quoted in the range of Rs2,275/2,300 per quintal.

Given the fair weather and acreage of soybean at 94 lakh hectares, industry traders expect a crop size of 95/98 lakh tonne.

The demand for soy meal remained lacklustre as South Asian demand shifted to North America due to competitive price. However, we believe that as the new crop arrives in the market, a fair fall in the price could rejuvenate the demand for meal in the South Asian countries.

Soymeal was quoted in the range of USD430/435 PMT Kandla while in the local market the same was quoted in the range of Rs21,700/21,800 per quintal.

Soyoil’s price too corrected by Rs5 per 10kg following a fall in soybean’s price and positive weather outlook.

Soyoil was quoted in the range of Rs435/439 per 10kg (excluding tax) at the Indore markets. We expect the price to correct in the medium term following the harvest of the new crop.

Castor Seed Exports With Reports Of Lower Sowing In Rajasthan - August 26, 2009

Castor seed future rose yesterday with reports of lower sowing in Rajasthan, which occupies 20% share in acreage. Sowing is low due to low rains in the last few weeks. However, with weather charts indicating rainfall in the coming week in Gujarat as well as Rajasthan (the castor sowing areas), sowing of this non-edible seed may increase.

Arrivals of castor were reported lower at 12,000 bags as farmers held back their goods in expectation of a higher price while the price at the Gujarat markets was in the range of Rs555/560 per 20kg. The demand for castor oil continued to be dull with FSG castor oil quoting at Rs605/10kg.

We expect castor sowing to gather momentum in the coming days with the expected rainfall scenario. However, the price would continue to stay volatile aided by the monsoon.

Soymeal Exports Plunge 26 Per Cent In Value Till July - August 26, 2009

India's soymeal exports dropped 26 per cent to Rs 5,087.88 crore till July this season (ending September 2009). The fall is attributed to poor overseas demand and low crushing of soybean in the domestic market.

According to the data compiled by Indore-based Soyabean Processors Association (SOPA), the outbound shipment of the animal feed fell by around Rs 1,823 crore so far this season (October 2008-July 2009) from Rs 6,910.8 crore in the in the year-ago period.

In volume terms, the exports dropped by 37 per cent at 2.91 million tonnes between October 2008 and July this year, the data showed.

Tobacco Exports Rush Forward 39 per cent In April To July - August 26, 2009

Tobacco export of India increased 39 per cent in value terms to Rs 1,366 crore during the first four months of this financial year on better price realization and higher demand, the Tobacco Board said. The country had shipped tobacco worth Rs 982.87 crore in the same period last year, it said.

"A spurt in global demand owing to a production shortfall in major growing countries like Europe, has made Indian tobacco competitive on the price front," a senior Board official said.

Black Pepper Prices Faltering Demand At Higher Rates - August 25, 2009

Faltering demand at higher rates with the US and European countries have holding back their purchases at high rates resulted in a fall in the price of black pepper. At the future bourses, liquidation was noticed in the price of pepper as it abated by 4%, resulting in a lower freeze while at Kochi markets too the price of pepper softened by 3%.

The Malabar grade garbled pepper was quoted at Rs14,800 while ungarbled pepper was quoted at Rs14,300 per quintal.

Arrivals were reported at 225 quintal while business of just 185 quintal conceived during the trading session.

We expect this correction to continue in the coming days due to lower international demand and fair monsoon rains in Kerala which would support higher productivity.

Steady Demand Of The Turmeric Growing Areas On Markets - August 25, 2009

Steady demand was noticed at Nizamabad as well as Erode markets yesterday, though the price fell at the future bourses due to fair rains in the southern region of the turmeric growing areas. At the Erode market, around 1,800 bags were traded in the range of Rs8,250/8,350 while 850 bags were traded at the Nizamabad market in the price range of Rs8,400/8,500 per quintal.

Fair rains in the last couple of days will boost the sowing of turmeric in the coming days. The new crop of turmeric will only arrive in the market from January onwards.

The October delivery contract still trades at a discount of 12-13% and we expect this discount to eventually contract in the coming weeks, given the tight supply position in turmeric.

Jeera Exports Lower Demand From Local Stockists - August 25, 2009

Lower demand from local stockists supported by lacklustre demand from exporters weighed on the price of jeera at the benchmark market of Unjha. Arrivals were reported at 11,000/12,000 bags while only 7,500 bags were traded during the day.

The consensus price for NCDEX quality jeera was in the range of Rs11,950/12,000 per quintal.

The price of jeera could soften in the coming days due to lower domestic as well as international demand following a higher crop in Turkey/Syria this year.