NCDEX turmeric ends higher on extended buying
Spot prices of Turmeric and Futures remained firm for the third consecutive day and settled 0.79% and 1.92% higher respectively on Friday owing to buying by the local stockists.
Production, Arrivals and Exports
Arrivals in Nizamabad and Erode mandi stood at 10000 bags and 800 bags respectively on Friday.
Turmeric production for the year 2011-12 is projected at historical high of 82 lakh bags (1 bag= 70 kgs) compared to 69 lakh bags in 2010- 11. Erode is expected to produce45 lakh bags of turmeric a rise of 29% as compared to previous year.
According to Spices Board of India, exports of Turmeric during April 2011- September 2011 stood at 41,500 tonnes as compared to 28,500 tonnes in 2010-11, rise of 46%.
Courtesy: Angel Commodities
NCDEX jeera rises on weak sowing
Jeera Futures traded rangebound throughout the day and settled 0.24% higher on Friday. Reports that weather in the chief growing area is not favourable for the sown jeera crop are likely to support prices.
Temperatures in the Gujarat are warm which is drying the soil moisture thereby stopping proper germination of the seed.
According to Gujarat farm ministry, area sown under jeera till December 05, 2011 stood at 1.92 lakh hectares (lh) up 20% as compared to last year. Carryover stocks of jeera is expected to be around 9-10 lakh bags as compared to 4-5 lakh bags in the last year.
Prices in the global markets of Indian origin are quoting around $2,800-2,950/tn while Syrian origin is quoting at $3,100-$3,150/tn.
Production, Arrivals and Exports
Unjha markets witnessed steady arrivals of 2,000 bags amidst offtakes of 3,800 bags on Friday.
Production of jeera in 2011-12 is expected to be around 35 lakh bags as compared to 29 lakh bags in 2010-11. (Each bag weighs 55 kgs). (Source: spot market traders).
According to Spices Board of India, exports of Jeera during April 2011- September 2011 stood at 16,000 tonnes as compared to 18,800 tonnes in 2010-11, decline of 15%.
Courtesy: Angel Commodities
NCDEX pepper settles lower on subdued spot demand
Lacklustre trades at the domestic led Spot prices and Futures to settle 0.36% and 0.54% lower on Friday. Slow buying from the overseas buyers was witnessed owing to Christmas and New Year vacation. This is also pressurized prices.
Pepper stocks with Vietnam are expected to be around 10 thousand tonnes while that in India is expected to be 12 thousand tonnes.
Indian parity in the international market was at $7,325-7,450(c&f) a tonne and remained competitive while Vietnam 550 gl was quoting its pepper at $7,250 per tonne (fob).
Exports from the major countries
According to Spices Board of India, exports of pepper during April 2011- September 2011 stood at 11,250 tonnes as compared to 9,250 tonnes in 2010-11, rise of 22%.
According to International Pepper Community (IPC) exports of black pepper during January to October 2011 from six major exporting countries (Brazil, India, Indonesia, Malaysia, Vietnam and Sri Lanka) was around 2.04 lakh tonnes a decline of 4.6% as compared to 2.14 lakh tonne in the same period last year.
Exports from Indonesia posted significant decrease of 40% as compared to previous year. Exports stood at 29,000 tonnes as compared to 48,500 tonnes in the last year.
During Jan to Oct 2011, Brazil exported 25,331 tonnes of pepper a rise of 4.74% as compared to previous year. U.S. remained the major destination of the pepper imports.
Production and Arrivals
Arrivals of pepper in the domestic mandi on Friday stood at 11 tonnes as compared to 25 tonnes on Thursday. Offtakes on the other hand stood at 10 tonnes.
Global Pepper production in 2012 is expected to increase 7.2% to 3.20 lakh tonnes as compared to 2.98 lakh tonnes in 2011 with sharp rise of 24% in Indonesian pepper output and in Vietnam by 10%. Pepper production in Vietnam and Indonesia is projected at 1.10 lakh tonnes while that in Indonesia is projected to be 41 thousand tonnes. (Source: Financial Express).
On the other hand production of pepper in India in 2011-12 is expected to be scale down further by 5% to 43 thousand tonnes as compared to 48 thousand tonnes in the last year.
Courtesy: Angel Commodities
NCDEX soybean ends higher on rising demand
NCDEX December soybean futures ended higher on 3rd consecutive trading sessions as improved demand from solvent extractors and stockists coupled with declining arrivals as farmers are holding their stocks in anticipation of higher prices.
Total arrivals of soy bean in Madhya Pradesh was 2 lakh bags and in Maharashtra was 1.50 lakh bags on Friday (Bag=100 Kg). Soybean plant delivery prices were Rs 2260-2300/qtl (excluding VAT) on Friday. USDA’s weekly export figures released on December 08, 2011, which shows that the net weekly export sales for soybeans came in at 770,400 metric tonnes for the current marketing year and 25,200 for the next marketing year for a total of 795,600 which was well above trade expectations. China was the most active buyer at 551,100 tonnes.
Meal sales came in at 170,000 metric tonnes which was about as expected and oil sales came in well above expectations at 18,500 metric tonnes with Morocco as the strongest buyer. As per WASDE (USDA) monthly supply and demand report which is released on December 09, 2011 shows that the total U.S. oilseed production for 2011/12 is projected at 91.0 million tons, down slightly due to a small reduction in cottonseed. Soybean exports are reduced 25 million bushels to 1.3 billion reflecting the slow pace of shipments and outstanding sales through November, and strong export competition from South America.
Projected soybean crush is reduced 10 million bushels to 1.625 billion due to reduced domestic soybean meal consumption and a higher meal extraction rate. Soybean ending stocks for 2011/12 are projected at 230 million bushels, up 35 million from last month. Global oilseed production for 2011/12 is projected at 457.6 million tons, up 2.8 million tons from last month.
Global soybean production is projected at 259.2 million tons, up 0.3 million. Increased production for Canada and India is only partly offset by a lower projection for China. Global rapeseed production is projected higher this month mainly due to gains for Canada. Global oilseed ending stocks are projected at 75.5 million tons, up 1.6 million from last month mainly reflecting increased soybean stocks in the United States and increased rapeseed stocks in Canada.
Mustard Seed
NCDEX December RM Seed futures ended in red on account of profit taking after sharp rise in the last 4-5 trading sessions. Rape/mustard seed accounts for about 70% of India's winter-season oilseed output.
According to Directorate of Economics and statistics as on December 07, 2011, sowing acreage of Mustard Seed increased to 59.60 lakh hectare (up by 2.53%) as compared to 58.13 lakh hectare last year till date. As per WASDE (USDA) monthly supply and demand report which is released on December 09, 2011 shows that the Canada rapeseed production is raised 1.3 million tons to 14.2 million based on the latest survey results from Statistics Canada. Higher yields account for most of the change. Rapeseed production for China is reduced 0.3 million tons due to lower yields in line with the latest indications from the China National Grain and Oils Information Center.
Refine Soy Oil
NCDEX December refined soy oil futures traded higher on supply concern as lower production estimates of Malaysian palm oil due to heavy rains in major producing regions. Malaysia is the world's second largest crude palm oil producer.
Courtesy: Angel Commodities
NCDEX sugar edges higher on rising spot demand
Tracking the firmness in the international Sugar prices, domestic sugar futures rebounded on Friday and settled 1.25% higher, while spot declined marginally by 0.81% due to huge supplies amidst higher monthly quota.
The government has notified the export of one million tonnes of sugar in the 2011-12 seasons. The ministry has given 45 days to sugar mills to apply for export release orders, which will be valid for 60 days. (Source: Economic Times)
Government has released 19.1 lakh tonne (tn) of Sugar for the month of December which includes 2.07 lakh tn of levy quota, 17 lakh tn of non levy quota and 600 tn of Sugar refined from imported raw.
After gaining sharply on Thursday, Liffe and Raw Sugar settled 2.92% and 3.03% on sufficient supplies amidst higher output in Thailand and India. Pessimistic comments from EU paymaster Germany and new figures exposing growing stress among Europe's banks took the shine off financial market hopes of a turning point in the euro zone debt crisis at a summit this week.(source: Reuters)
Domestic Sugar updates
According to ISMA, India is likely to have crushed 14.4 mln tn cane during Oct 1-Nov 23 and produced 1.3 mln tn sugar during the current crushing season. Maharashtra Oct 1-Dec 8 sugar output is up at 1.45 mln tn vs 1.31 mln yr ago due to higher recovery at 9.8% from 9.344% last year.
Indian Sugarcane production is estimated higher by 0.9% at 342 mn tn for 2011-12 season starting October 1, 2011. ISMA has projected sugar production at 26 million tonnes for 2011-12.
With the opening stocks of 6 mn tn, domestic Sugar supplies are estimated at 32 mn tn against the domestic consumption of around 23 mn tn. Thus there is a wide scope for exports from India.
Global Sugar Updates
Thailand sugar output could reach to 9.9 million tonnes in 2011-12 compared to 9.64 million tonnes in 2010-11.
According to UNICA, Sugar output in Brazil's center-south in the first half of November fell 13.8 percent from a year ago, as more mills ended crushing the 2011/12 cane crop. Sugar production in the period totaled 1.26 million tonnes, compared with 1.46 million tonnes a year earlier.
Swiss sugar consultancy Kingsman today lowered its global 2011-12 sugar surplus estimate by 940,000 tn to 8.22 mln tn, due to higher projection for consumption than earlier estimated.
Courtesy: Angel Commodities
NCDEX chana settles higher on short covering
Chana futures extended gains of the previous day and settled 013% higher on Friday. Reports of removal of 10% special margin on Chana provided support to the prices. However, Spot prices witnessed correction and settled 1.10% down on higher acreage under pulses cultivation and thereby hope of better output.
Forward Market Commission (FMC) has scrapped special margin of 10% on Chana on long side on all running contracts with effect from Friday December 09, 2011.
According to the latest report by Ministry of Agriculture, pulses have been sown in 12.06 million hectares as on 8th December 2011, up 1.17% as compared to 11.92million hectares in the same period last year.
However, area sown under Chana in India till 8th December 2011 was 7.94 million hectares down 0.37% as compared to 7.97 million hectares in the same period previous year.
Area under Chana in Maharashtra till date is 8.21 lakh hectares down 16% as compared to 9.82 lakh hectares in the same period previous year.
In Rajasthan, as per the current pace of sowing and favourable weather it looks that sowing of Chana may cross the set target of state agriculture department of 17 lakh ha. So far Chana is sown in 15.21 lakh ha against 14.47 lakh ha sown in the same period last year (December 07, 2011).
Currently, imports from Australia are viable. Cost and Freight (C & F) quote declined marginally by $20 per MT to $630/MT. Thus, fresh import contract may execute in the coming weeks due to import parity. Landed cost currently stands at Rs 32130 / tn against domestic price of Rs 34100 / tn in Mumbai.
Sowing progress and Production
Indian government is targeting total pulses output of 17 mln tn in the current crop year that started July 2011, down marginally from last year's record production of 18.09 mln tn on account of 10% decline in Kharif Pulses output.
However, Rabi Pulses output Is estimated higher on higher area and conducive weather
Chana is the main Rabi Pulse crop grown in India, sowing of which is done during October-December, and harvesting begins in January. If the sowing trend is maintained India may witness another bumper crop of Chana in the coming season.
According to the first advance estimates, Kharif Pulses output for 2011- 12 season is down by 9.6% at 6.43 mt. Tur output estimates is up by 0.35% while moong & Urad is down by 21% & 16% respectively. Kharif Pulses sowing is down by 9% as on 23rd September, 2011. 109.41 lakh ha has been covered against 120.3 lakh ha in the last year.
Courtesy: Angel Commodities
NCDEX guar seed edges higher on removal of special margin
Mixed sentiments prevailed across Guar complex on Friday on unconfirmed reports that the regulator may impose special margin on Guar Seed and Guargum as Guar prices had gained more than 35% in the last 4 weeks.
According to the exchange circular issue on Friday, the National Commodity and Derivatives Exchange has imposed 10% special margin on all long positions in guar seed and guar gum contracts, the half of which must be paid in cash with effect from 13th December, 2011.
Currently, total margin on Guar seed and Guar gum stands around 8.5% and 9.5% , i.e. around Rs 48700 and Rs 88800 per contract. After the imposition the total margin for trading in Guar seed and Guar gum would be 18.5% and 19.5% i.e around Rs 103000 and Rs 177000 respectively.
Although long term fundamentals remain supportive for the prices, current market conditions do not support the upside rally as arrival season is ongoing in the domestic markets.
Arrivals of late sown Guar crop has started across Churu, Bikaner and other growing areas of Rajasthan and thus arrivals have increased in this week (since 5th December 2011) and stands around 1.50 lakh bags.
On the back of record high exports, the exports federation has urged the Government to withdraw export promotion incentives and impose export duty on guar seeds. However, no decision on same has been taken yet.
Production
Guar seed output in Rajasthan is estimated at 11.36 lakh tonnes for 2011-12 season compared to 15.46 lakh tonnes in 2010-11 (Rajasthan Farm Dept). Production of Guar in Haryana and Gujarat is expected to be 0.2 lakh tonnes and 0.07 lakh tonnes respectively in 2011-12.
However, there are unconfirmed reports that Guar seed output may be lower around 10 lakh tonnes compared to the government target of 11.3 lakh tonne due to excess moisture in the soil during the sowing period. Thus, with lower carryover stocks and lower output the supplies would not be sufficient in the long run if Guar gum export trend continue to remain the same as last year, thus supporting the upside rally in the longer term.
Exports
According to Agriculture and Processed Food Products Export Development Authority, Indian Guar gum exports for the period April- March 2010-11 surged by 84% and stood at 4,03,007 tonnes as compared to 2,18,473 tonnes during the last year.
Exports of Guar gum from April to July of the current fiscal year 2011-12 stood at 1.93 lakh tn a rise of 82% compared to 1.02 lakh tn during the same period last year.
Export figures clearly indicate that global crisis has not hit Guar exports as of now in the current season too. In fact rupee has increased profit margin of the exporters in the current season.
Courtesy: Angel Commodities
Spot prices of Turmeric and Futures remained firm for the third consecutive day and settled 0.79% and 1.92% higher respectively on Friday owing to buying by the local stockists.
Production, Arrivals and Exports
Arrivals in Nizamabad and Erode mandi stood at 10000 bags and 800 bags respectively on Friday.
Turmeric production for the year 2011-12 is projected at historical high of 82 lakh bags (1 bag= 70 kgs) compared to 69 lakh bags in 2010- 11. Erode is expected to produce45 lakh bags of turmeric a rise of 29% as compared to previous year.
According to Spices Board of India, exports of Turmeric during April 2011- September 2011 stood at 41,500 tonnes as compared to 28,500 tonnes in 2010-11, rise of 46%.
Courtesy: Angel Commodities
NCDEX jeera rises on weak sowing
Jeera Futures traded rangebound throughout the day and settled 0.24% higher on Friday. Reports that weather in the chief growing area is not favourable for the sown jeera crop are likely to support prices.
Temperatures in the Gujarat are warm which is drying the soil moisture thereby stopping proper germination of the seed.
According to Gujarat farm ministry, area sown under jeera till December 05, 2011 stood at 1.92 lakh hectares (lh) up 20% as compared to last year. Carryover stocks of jeera is expected to be around 9-10 lakh bags as compared to 4-5 lakh bags in the last year.
Prices in the global markets of Indian origin are quoting around $2,800-2,950/tn while Syrian origin is quoting at $3,100-$3,150/tn.
Production, Arrivals and Exports
Unjha markets witnessed steady arrivals of 2,000 bags amidst offtakes of 3,800 bags on Friday.
Production of jeera in 2011-12 is expected to be around 35 lakh bags as compared to 29 lakh bags in 2010-11. (Each bag weighs 55 kgs). (Source: spot market traders).
According to Spices Board of India, exports of Jeera during April 2011- September 2011 stood at 16,000 tonnes as compared to 18,800 tonnes in 2010-11, decline of 15%.
Courtesy: Angel Commodities
NCDEX pepper settles lower on subdued spot demand
Lacklustre trades at the domestic led Spot prices and Futures to settle 0.36% and 0.54% lower on Friday. Slow buying from the overseas buyers was witnessed owing to Christmas and New Year vacation. This is also pressurized prices.
Pepper stocks with Vietnam are expected to be around 10 thousand tonnes while that in India is expected to be 12 thousand tonnes.
Indian parity in the international market was at $7,325-7,450(c&f) a tonne and remained competitive while Vietnam 550 gl was quoting its pepper at $7,250 per tonne (fob).
Exports from the major countries
According to Spices Board of India, exports of pepper during April 2011- September 2011 stood at 11,250 tonnes as compared to 9,250 tonnes in 2010-11, rise of 22%.
According to International Pepper Community (IPC) exports of black pepper during January to October 2011 from six major exporting countries (Brazil, India, Indonesia, Malaysia, Vietnam and Sri Lanka) was around 2.04 lakh tonnes a decline of 4.6% as compared to 2.14 lakh tonne in the same period last year.
Exports from Indonesia posted significant decrease of 40% as compared to previous year. Exports stood at 29,000 tonnes as compared to 48,500 tonnes in the last year.
During Jan to Oct 2011, Brazil exported 25,331 tonnes of pepper a rise of 4.74% as compared to previous year. U.S. remained the major destination of the pepper imports.
Production and Arrivals
Arrivals of pepper in the domestic mandi on Friday stood at 11 tonnes as compared to 25 tonnes on Thursday. Offtakes on the other hand stood at 10 tonnes.
Global Pepper production in 2012 is expected to increase 7.2% to 3.20 lakh tonnes as compared to 2.98 lakh tonnes in 2011 with sharp rise of 24% in Indonesian pepper output and in Vietnam by 10%. Pepper production in Vietnam and Indonesia is projected at 1.10 lakh tonnes while that in Indonesia is projected to be 41 thousand tonnes. (Source: Financial Express).
On the other hand production of pepper in India in 2011-12 is expected to be scale down further by 5% to 43 thousand tonnes as compared to 48 thousand tonnes in the last year.
Courtesy: Angel Commodities
NCDEX soybean ends higher on rising demand
NCDEX December soybean futures ended higher on 3rd consecutive trading sessions as improved demand from solvent extractors and stockists coupled with declining arrivals as farmers are holding their stocks in anticipation of higher prices.
Total arrivals of soy bean in Madhya Pradesh was 2 lakh bags and in Maharashtra was 1.50 lakh bags on Friday (Bag=100 Kg). Soybean plant delivery prices were Rs 2260-2300/qtl (excluding VAT) on Friday. USDA’s weekly export figures released on December 08, 2011, which shows that the net weekly export sales for soybeans came in at 770,400 metric tonnes for the current marketing year and 25,200 for the next marketing year for a total of 795,600 which was well above trade expectations. China was the most active buyer at 551,100 tonnes.
Meal sales came in at 170,000 metric tonnes which was about as expected and oil sales came in well above expectations at 18,500 metric tonnes with Morocco as the strongest buyer. As per WASDE (USDA) monthly supply and demand report which is released on December 09, 2011 shows that the total U.S. oilseed production for 2011/12 is projected at 91.0 million tons, down slightly due to a small reduction in cottonseed. Soybean exports are reduced 25 million bushels to 1.3 billion reflecting the slow pace of shipments and outstanding sales through November, and strong export competition from South America.
Projected soybean crush is reduced 10 million bushels to 1.625 billion due to reduced domestic soybean meal consumption and a higher meal extraction rate. Soybean ending stocks for 2011/12 are projected at 230 million bushels, up 35 million from last month. Global oilseed production for 2011/12 is projected at 457.6 million tons, up 2.8 million tons from last month.
Global soybean production is projected at 259.2 million tons, up 0.3 million. Increased production for Canada and India is only partly offset by a lower projection for China. Global rapeseed production is projected higher this month mainly due to gains for Canada. Global oilseed ending stocks are projected at 75.5 million tons, up 1.6 million from last month mainly reflecting increased soybean stocks in the United States and increased rapeseed stocks in Canada.
Mustard Seed
NCDEX December RM Seed futures ended in red on account of profit taking after sharp rise in the last 4-5 trading sessions. Rape/mustard seed accounts for about 70% of India's winter-season oilseed output.
According to Directorate of Economics and statistics as on December 07, 2011, sowing acreage of Mustard Seed increased to 59.60 lakh hectare (up by 2.53%) as compared to 58.13 lakh hectare last year till date. As per WASDE (USDA) monthly supply and demand report which is released on December 09, 2011 shows that the Canada rapeseed production is raised 1.3 million tons to 14.2 million based on the latest survey results from Statistics Canada. Higher yields account for most of the change. Rapeseed production for China is reduced 0.3 million tons due to lower yields in line with the latest indications from the China National Grain and Oils Information Center.
Refine Soy Oil
NCDEX December refined soy oil futures traded higher on supply concern as lower production estimates of Malaysian palm oil due to heavy rains in major producing regions. Malaysia is the world's second largest crude palm oil producer.
Courtesy: Angel Commodities
NCDEX sugar edges higher on rising spot demand
Tracking the firmness in the international Sugar prices, domestic sugar futures rebounded on Friday and settled 1.25% higher, while spot declined marginally by 0.81% due to huge supplies amidst higher monthly quota.
The government has notified the export of one million tonnes of sugar in the 2011-12 seasons. The ministry has given 45 days to sugar mills to apply for export release orders, which will be valid for 60 days. (Source: Economic Times)
Government has released 19.1 lakh tonne (tn) of Sugar for the month of December which includes 2.07 lakh tn of levy quota, 17 lakh tn of non levy quota and 600 tn of Sugar refined from imported raw.
After gaining sharply on Thursday, Liffe and Raw Sugar settled 2.92% and 3.03% on sufficient supplies amidst higher output in Thailand and India. Pessimistic comments from EU paymaster Germany and new figures exposing growing stress among Europe's banks took the shine off financial market hopes of a turning point in the euro zone debt crisis at a summit this week.(source: Reuters)
Domestic Sugar updates
According to ISMA, India is likely to have crushed 14.4 mln tn cane during Oct 1-Nov 23 and produced 1.3 mln tn sugar during the current crushing season. Maharashtra Oct 1-Dec 8 sugar output is up at 1.45 mln tn vs 1.31 mln yr ago due to higher recovery at 9.8% from 9.344% last year.
Indian Sugarcane production is estimated higher by 0.9% at 342 mn tn for 2011-12 season starting October 1, 2011. ISMA has projected sugar production at 26 million tonnes for 2011-12.
With the opening stocks of 6 mn tn, domestic Sugar supplies are estimated at 32 mn tn against the domestic consumption of around 23 mn tn. Thus there is a wide scope for exports from India.
Global Sugar Updates
Thailand sugar output could reach to 9.9 million tonnes in 2011-12 compared to 9.64 million tonnes in 2010-11.
According to UNICA, Sugar output in Brazil's center-south in the first half of November fell 13.8 percent from a year ago, as more mills ended crushing the 2011/12 cane crop. Sugar production in the period totaled 1.26 million tonnes, compared with 1.46 million tonnes a year earlier.
Swiss sugar consultancy Kingsman today lowered its global 2011-12 sugar surplus estimate by 940,000 tn to 8.22 mln tn, due to higher projection for consumption than earlier estimated.
Courtesy: Angel Commodities
NCDEX chana settles higher on short covering
Chana futures extended gains of the previous day and settled 013% higher on Friday. Reports of removal of 10% special margin on Chana provided support to the prices. However, Spot prices witnessed correction and settled 1.10% down on higher acreage under pulses cultivation and thereby hope of better output.
Forward Market Commission (FMC) has scrapped special margin of 10% on Chana on long side on all running contracts with effect from Friday December 09, 2011.
According to the latest report by Ministry of Agriculture, pulses have been sown in 12.06 million hectares as on 8th December 2011, up 1.17% as compared to 11.92million hectares in the same period last year.
However, area sown under Chana in India till 8th December 2011 was 7.94 million hectares down 0.37% as compared to 7.97 million hectares in the same period previous year.
Area under Chana in Maharashtra till date is 8.21 lakh hectares down 16% as compared to 9.82 lakh hectares in the same period previous year.
In Rajasthan, as per the current pace of sowing and favourable weather it looks that sowing of Chana may cross the set target of state agriculture department of 17 lakh ha. So far Chana is sown in 15.21 lakh ha against 14.47 lakh ha sown in the same period last year (December 07, 2011).
Currently, imports from Australia are viable. Cost and Freight (C & F) quote declined marginally by $20 per MT to $630/MT. Thus, fresh import contract may execute in the coming weeks due to import parity. Landed cost currently stands at Rs 32130 / tn against domestic price of Rs 34100 / tn in Mumbai.
Sowing progress and Production
Indian government is targeting total pulses output of 17 mln tn in the current crop year that started July 2011, down marginally from last year's record production of 18.09 mln tn on account of 10% decline in Kharif Pulses output.
However, Rabi Pulses output Is estimated higher on higher area and conducive weather
Chana is the main Rabi Pulse crop grown in India, sowing of which is done during October-December, and harvesting begins in January. If the sowing trend is maintained India may witness another bumper crop of Chana in the coming season.
According to the first advance estimates, Kharif Pulses output for 2011- 12 season is down by 9.6% at 6.43 mt. Tur output estimates is up by 0.35% while moong & Urad is down by 21% & 16% respectively. Kharif Pulses sowing is down by 9% as on 23rd September, 2011. 109.41 lakh ha has been covered against 120.3 lakh ha in the last year.
Courtesy: Angel Commodities
NCDEX guar seed edges higher on removal of special margin
Mixed sentiments prevailed across Guar complex on Friday on unconfirmed reports that the regulator may impose special margin on Guar Seed and Guargum as Guar prices had gained more than 35% in the last 4 weeks.
According to the exchange circular issue on Friday, the National Commodity and Derivatives Exchange has imposed 10% special margin on all long positions in guar seed and guar gum contracts, the half of which must be paid in cash with effect from 13th December, 2011.
Currently, total margin on Guar seed and Guar gum stands around 8.5% and 9.5% , i.e. around Rs 48700 and Rs 88800 per contract. After the imposition the total margin for trading in Guar seed and Guar gum would be 18.5% and 19.5% i.e around Rs 103000 and Rs 177000 respectively.
Although long term fundamentals remain supportive for the prices, current market conditions do not support the upside rally as arrival season is ongoing in the domestic markets.
Arrivals of late sown Guar crop has started across Churu, Bikaner and other growing areas of Rajasthan and thus arrivals have increased in this week (since 5th December 2011) and stands around 1.50 lakh bags.
On the back of record high exports, the exports federation has urged the Government to withdraw export promotion incentives and impose export duty on guar seeds. However, no decision on same has been taken yet.
Production
Guar seed output in Rajasthan is estimated at 11.36 lakh tonnes for 2011-12 season compared to 15.46 lakh tonnes in 2010-11 (Rajasthan Farm Dept). Production of Guar in Haryana and Gujarat is expected to be 0.2 lakh tonnes and 0.07 lakh tonnes respectively in 2011-12.
However, there are unconfirmed reports that Guar seed output may be lower around 10 lakh tonnes compared to the government target of 11.3 lakh tonne due to excess moisture in the soil during the sowing period. Thus, with lower carryover stocks and lower output the supplies would not be sufficient in the long run if Guar gum export trend continue to remain the same as last year, thus supporting the upside rally in the longer term.
Exports
According to Agriculture and Processed Food Products Export Development Authority, Indian Guar gum exports for the period April- March 2010-11 surged by 84% and stood at 4,03,007 tonnes as compared to 2,18,473 tonnes during the last year.
Exports of Guar gum from April to July of the current fiscal year 2011-12 stood at 1.93 lakh tn a rise of 82% compared to 1.02 lakh tn during the same period last year.
Export figures clearly indicate that global crisis has not hit Guar exports as of now in the current season too. In fact rupee has increased profit margin of the exporters in the current season.
Courtesy: Angel Commodities