India turmeric extends downtrend on selling pressure
Turmeric Futures continued to trade lower due to selling by the market participants and settled 0.47% down on Friday. However near month futures continued to trade higher and settled 1.55% higher yesterday.
There are some reports of crop damage in A.P due to in adequate rainfall in the month of October. Crop damage would be around 10%. This is likely to provide support to the prices.
Production, Arrivals and Exports
Arrivals in Nizamabad stood at 1,000 bags while Erode market witnessed arrivals of 10,000 bags on Friday.
Turmeric production for the year 2011-12 is projected at 82 lakh bags (1 bag= 70 kgs) compared to 69 lakh bags in 2010-11. However, area covered under turmeric till 21st September 2011 stood at 0.67 lakh ha 2.9% lower as compared to 0.69 lakh ha in the 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
Inida jeera settles higher on fresh buying
Lacklustre trades at the domestic led prices to remain rangebound throughout the day and settled 0.35% higher on Friday. Spot prices however ended 0.04% lower due to reports that area under jeera is likely to increase this season.
Sowing of jeera in Rajasthan has gained momentum due to favorable weather condition. Sowing of Jeera has also commenced in some parts of Gujarat but it is on slow pace. 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 3,000 bags amidst offtakes of 2,800 bags on Friday.
Production of jeera in Gujarat and Rajasthan in 2011 was around 22 lakh bags and 7-8 lakh bags respectively. (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
India pepper weakens on poor spot demand
Pepper Futures continued to trade bearish and settled 0.77% lower on account of decline in the offtakes on Friday. Prices in Spot also settled 0.06% lower. However, reports that pepper crop in 2011-12 might fall below last year level of 48,000 tonnes is expected to support pepper prices. It expected to be in the range of 42-44 thousand tonnes. Lower stocks with Vietnam and Indonesia, the major suppliers of pepper will also support prices.
During January to October 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.
Indian parity in the international market was at $7,625 a tonne and remained competitive and was attracting overseas orders while Vietnam 550 gl $7,200/tonne was quoting its pepper at $7,325 per tonne (f.o.b). Indonesian and Brazil Asta grade is being offered at $7,200 and $7,450/tonne respectively.
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 September 2011 export of pepper from six major exporting countries (Brazil, India, Indonesia, Malaysia, Vietnam and Sri Lanka) was around 188,000 mt, 4% lower from the corresponding period of 195,000 mt. Vietnam has reportedly sold 1.12 lakh tonnes of pepper from January to September 2011 a rise of 14% as compared to previous year.
Sharp fall of 38% in pepper exports was witnessed in Indonesia during above period. Exports stood at 26,300 tonnes as compared to 42,082 tonnes in the last year.
Production and Arrivals
Arrivals of pepper in the domestic mandi on Friday stood at 8 tonnes as compared to 5 tonnes on Wednesday. Offtakes on the other hand stood at 5 tonnes.
Production of pepper in India in 2011-12 is expected to be 43 thousand tonnes according to the market sources a decline of 5% as compared to 48 thousand tonnes in the last year.
According to IPC global output of Pepper for 2011 is declined by 6,500 tonnes to 3.10 lakh tonnes. Vietnam production of the spice for 2010-11 was around 1.15 lakh tonnes. Pepper production in Brazil stood around 27,000 tonnes in 2010-11 as compared to 35,000 tonnes the previous year.
Courtesy: Angel Commodities
India soybean rises on global cues
NCDEX December soybean futures traded higher on Friday on account of firm overseas market as improved demand from China due to easing monetary policies to spur economic growth. China is planning to more US soybean to increase their stock reserve. According to executives with a state grain processing and trading company, China bought six cargoes (500,000 metric tonnes) of soybeans from the U.S. The move is part of its plan to buy 2 million tons of soybeans. USDA confirmed sales of 420,000 tonnes of U.S. soybeans to China for 2011/12 delivery also added bullish market sentiments.
USDA’s weekly export sales released on Thursday (November 17, 2011) which shows that the Weekly export sales for soybeans came in at 746,100 metric tonnes for the current marketing year and 5,100 for the next marketing year for a total of 751,200. This was higher than expected and included sales to China of 517,100 tonnes. Meal sales came in at 201,500 tonnes which was also higher than expected. Oil sales were just 2,100 tonnes which was well below expectations.
USDA’s monthly S& D report released on Wednesday (November 09, 2011) which shows slightly higher global oilseeds production estimates and higher ending stocks. Global oilseed production for 2011/12 is projected at 454.8 million tons, up 1.3 million tons from last month.
Brazil soybean production is increased 1.5 million tons to 75 million.
Total U.S. oilseed production for 2011/12 is projected at 91.2 million tons, down 0.5 million from last month due to lower soybean and cottonseed production. The soybean yield is forecast at 41.3 bushels per acre, down 0.2 bushels from last month.
Mustard Seed
NCDEX December RM Seed futures ended higher due to improved demand of RM seed from millers as higher prices of vegetable oil and other oilseeds. Area under Mustard seed in the last year stood around 7.2 million ha compared to 6.4 million ha in 2009-10 season. Rajasthan government has targeted mustard acreage in 2011-12 season at 30 lakh hectares compared to 24.9 lakh ha in 2010-11 season. As on 15th November, sowing has been completed on 78 percent of the area with total area covered so far standing around 23.55 lakh ha compare to 22.10 lakh ha same period last year.
Refine Soy Oil
NCDEX December Refined Soy oil futures traded higher on 5th consecutive trading sessions as improved demand of edible oil due to wedding/winter season demand coupled with supply concern of palm oil due to continuous and heavy rains in Indonesia and Malaysia (la Nina weather). Better export figures of palm oil during the first 15 days of this month also provided support to the prices. As per SGS ( a cargo surveyor), Malaysia's palm oil exports during the November 1-15 rose 11.6% from a month earlier to 802,917 metric tons.
India’s Vegetable Oil Imports:
According to Solvent Extractors Association of India, India’s import of vegetable oil in the month of October 2011 was 8.78 lakh tonnes, up 12% as compared to 7.81 lakh tonnes in October 2010. However, from November 2010 to October 2011 (Oil Marketing year), India’s import of vegetable oil was 83.71 lakh tonnes, fell more than 5% as compared to last edible oil marketing year of 88.23 lakh tonne.
Courtesy: Angel Commodities
India sugar ends higher on firm spot demand
Sugar futures extended gains of the previous day and settled 0.66% higher on Friday on reports of lower sugar recovery till date in Maharashtra as compared to last year. Further, as Sugar mills in Uttar Pradesh have not started crushing, farmers are supplying canes to the jaggery manufacturers. This is also supporting sugar prices. Decision on the sugar exports has been deferred till November 21, 2011.
So far 116 mills in Maharatsra are operating out of over 160 expected to produce, and have churned out 311,000 tonnes of sugar compared with 390,000 tonnes a year ago.(source: Reuters)
Further, reports that the Empowered Group of ministers may consider fresh Sugar exports on 21st November are likely to provide support to the prices.
ICE Raw Sugar futures and LIFFE settled 0.29% and 0.95% down on Friday with sustained concerns of Euro debt crisis. Possibility of decision on exports of sugar from India is also weighing on the prices. However, buying by Malaysia coupled with issuance of import quota by Mexico may lend support to the international prices.
Brazil sugar exports down 17% Y-Y in October 2011. Brazil exported 2.55 million tonnes of sugar in the month of October 2011 on account of less cane and sugar output.
Domestic Sugar updates
Cane output in Maharashtra is expected to rise to 82.5 mn tn during 2011-12 from 80.3 mn tn last year, while sugar output is likely to increase about 2.5% to 9.3 mn tn.
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
According to UNICA, Sugar production in Brazil's center-south in the second half of Oct dipped 23.5 percent from a year ago, as more mills ended crushing the 2011/12 cane crop. Sugar output totaled 1.47 million tonnes, down from 1.92 million tonnes a year earlier. Eighty-nine out of the 310 existing mills in the region had concluded crushing by Nov. 1.
China, the world's largest sugar consumer, has imported 1.6 million tons of sugar in the first 11 months of 2011, with preliminary data for the full year likely to be issued around October 10.
Courtesy: Angel Commodities
NCDEX chana edge higher on active buying
Chana futures added to the gains of the previous day and settled 0.26 % higher on Friday on account of improved buying at the support levels. Spot prices also ended 0.97% higher owing recovery in demand from the local stockists.
There are reports that supplies in the global markets are tight. This will make imports costlier. Further, reports of lower sowing under pulses in A.P. and Karnataka due to dry spell are providing support to the prices.
According to the Ministry of Agriculture, pulses have been sown in 49.75 lakh hectares as on November 18th 2011 as compared to 46.33 lakh hectares in the last year same period.
The biggest jump has been in the area under gram in Madhya Pradesh (1.29 million hectares, up 80 per cent more than last year) and Rajasthan (13.33 lakh hectares, up 48 per cent). Together, they account for fourfifth of the gram produced in the country. Overall, acreage of all pulses, which also includes lentil and peas apart from gram, in these two states is almost 59 per cent and 65 per cent more than last year. (Source: Business Standard)
There are reports of decline in the output of dry peas and Chickpeas in Canada for 2011. Chickpeas output is expected to fall by 58% to 54 MT while that of peas will fall by 33% to 2 MT (Source: Agriwatch)
Pulses Imports
Imports have declined dramatically in the current FY 2011-12 with India's state-owned trading agencies having contracted imports of only 121,660 tn pulses since the beginning of the current financial year till September 12, 2011 compared with 596,700 tn during the same period last year.
Imports have been weak because domestic pulses output in 2010-11 (Jul- Jun) was at an all time high of 18.09 mln tn, up 23percent from a year ago. Also, the Centre has abolished one of the reimbursement schemes for the state-owned importing agencies.
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.
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
Guar seed settles higher on weak arrivals
Spot prices as well Futures settled 0.45% higher on Friday on account of reduced arrivals amidst demand from local stockists on Friday.
Expectation of revision in the Guar output will provide support to the prices.
Arrivals remained steady at 60,000 bags on Friday as compared to 70000- 75000 bags in the beginning of the month.
Despite of lower output estimates in the current season arrivals are much higher. This is because farmers this season are not holding back their stocks due to record high prices.
Record Average daily arrivals are hovering around 90 thousand to 1 lakh bags compared to 55-60 thousand bags in the previous year.
There are reports that higher prices of Guar gum have made users to think for other alternative cheaper sources of gum for Oil exploration. However, no confirm reports are available as of now.
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.
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 June of the current fiscal year 2011-12 stood at 1.45 lakh tn compared to 0.71 lakh tn during the same period last year.
Exporters believe that exports which had crossed over 4 lakh tn last year, may hit this year due on financial crisis in U.S & Europe along with shift in demand.
However the export figures clearly indicates that global crisis has not hit Guar exports as of now in the current season too.
Courtesy: Angel Commodities
Turmeric Futures continued to trade lower due to selling by the market participants and settled 0.47% down on Friday. However near month futures continued to trade higher and settled 1.55% higher yesterday.
There are some reports of crop damage in A.P due to in adequate rainfall in the month of October. Crop damage would be around 10%. This is likely to provide support to the prices.
Production, Arrivals and Exports
Arrivals in Nizamabad stood at 1,000 bags while Erode market witnessed arrivals of 10,000 bags on Friday.
Turmeric production for the year 2011-12 is projected at 82 lakh bags (1 bag= 70 kgs) compared to 69 lakh bags in 2010-11. However, area covered under turmeric till 21st September 2011 stood at 0.67 lakh ha 2.9% lower as compared to 0.69 lakh ha in the 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
Inida jeera settles higher on fresh buying
Lacklustre trades at the domestic led prices to remain rangebound throughout the day and settled 0.35% higher on Friday. Spot prices however ended 0.04% lower due to reports that area under jeera is likely to increase this season.
Sowing of jeera in Rajasthan has gained momentum due to favorable weather condition. Sowing of Jeera has also commenced in some parts of Gujarat but it is on slow pace. 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 3,000 bags amidst offtakes of 2,800 bags on Friday.
Production of jeera in Gujarat and Rajasthan in 2011 was around 22 lakh bags and 7-8 lakh bags respectively. (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
India pepper weakens on poor spot demand
Pepper Futures continued to trade bearish and settled 0.77% lower on account of decline in the offtakes on Friday. Prices in Spot also settled 0.06% lower. However, reports that pepper crop in 2011-12 might fall below last year level of 48,000 tonnes is expected to support pepper prices. It expected to be in the range of 42-44 thousand tonnes. Lower stocks with Vietnam and Indonesia, the major suppliers of pepper will also support prices.
During January to October 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.
Indian parity in the international market was at $7,625 a tonne and remained competitive and was attracting overseas orders while Vietnam 550 gl $7,200/tonne was quoting its pepper at $7,325 per tonne (f.o.b). Indonesian and Brazil Asta grade is being offered at $7,200 and $7,450/tonne respectively.
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 September 2011 export of pepper from six major exporting countries (Brazil, India, Indonesia, Malaysia, Vietnam and Sri Lanka) was around 188,000 mt, 4% lower from the corresponding period of 195,000 mt. Vietnam has reportedly sold 1.12 lakh tonnes of pepper from January to September 2011 a rise of 14% as compared to previous year.
Sharp fall of 38% in pepper exports was witnessed in Indonesia during above period. Exports stood at 26,300 tonnes as compared to 42,082 tonnes in the last year.
Production and Arrivals
Arrivals of pepper in the domestic mandi on Friday stood at 8 tonnes as compared to 5 tonnes on Wednesday. Offtakes on the other hand stood at 5 tonnes.
Production of pepper in India in 2011-12 is expected to be 43 thousand tonnes according to the market sources a decline of 5% as compared to 48 thousand tonnes in the last year.
According to IPC global output of Pepper for 2011 is declined by 6,500 tonnes to 3.10 lakh tonnes. Vietnam production of the spice for 2010-11 was around 1.15 lakh tonnes. Pepper production in Brazil stood around 27,000 tonnes in 2010-11 as compared to 35,000 tonnes the previous year.
Courtesy: Angel Commodities
India soybean rises on global cues
NCDEX December soybean futures traded higher on Friday on account of firm overseas market as improved demand from China due to easing monetary policies to spur economic growth. China is planning to more US soybean to increase their stock reserve. According to executives with a state grain processing and trading company, China bought six cargoes (500,000 metric tonnes) of soybeans from the U.S. The move is part of its plan to buy 2 million tons of soybeans. USDA confirmed sales of 420,000 tonnes of U.S. soybeans to China for 2011/12 delivery also added bullish market sentiments.
USDA’s weekly export sales released on Thursday (November 17, 2011) which shows that the Weekly export sales for soybeans came in at 746,100 metric tonnes for the current marketing year and 5,100 for the next marketing year for a total of 751,200. This was higher than expected and included sales to China of 517,100 tonnes. Meal sales came in at 201,500 tonnes which was also higher than expected. Oil sales were just 2,100 tonnes which was well below expectations.
USDA’s monthly S& D report released on Wednesday (November 09, 2011) which shows slightly higher global oilseeds production estimates and higher ending stocks. Global oilseed production for 2011/12 is projected at 454.8 million tons, up 1.3 million tons from last month.
Brazil soybean production is increased 1.5 million tons to 75 million.
Total U.S. oilseed production for 2011/12 is projected at 91.2 million tons, down 0.5 million from last month due to lower soybean and cottonseed production. The soybean yield is forecast at 41.3 bushels per acre, down 0.2 bushels from last month.
Mustard Seed
NCDEX December RM Seed futures ended higher due to improved demand of RM seed from millers as higher prices of vegetable oil and other oilseeds. Area under Mustard seed in the last year stood around 7.2 million ha compared to 6.4 million ha in 2009-10 season. Rajasthan government has targeted mustard acreage in 2011-12 season at 30 lakh hectares compared to 24.9 lakh ha in 2010-11 season. As on 15th November, sowing has been completed on 78 percent of the area with total area covered so far standing around 23.55 lakh ha compare to 22.10 lakh ha same period last year.
Refine Soy Oil
NCDEX December Refined Soy oil futures traded higher on 5th consecutive trading sessions as improved demand of edible oil due to wedding/winter season demand coupled with supply concern of palm oil due to continuous and heavy rains in Indonesia and Malaysia (la Nina weather). Better export figures of palm oil during the first 15 days of this month also provided support to the prices. As per SGS ( a cargo surveyor), Malaysia's palm oil exports during the November 1-15 rose 11.6% from a month earlier to 802,917 metric tons.
India’s Vegetable Oil Imports:
According to Solvent Extractors Association of India, India’s import of vegetable oil in the month of October 2011 was 8.78 lakh tonnes, up 12% as compared to 7.81 lakh tonnes in October 2010. However, from November 2010 to October 2011 (Oil Marketing year), India’s import of vegetable oil was 83.71 lakh tonnes, fell more than 5% as compared to last edible oil marketing year of 88.23 lakh tonne.
Courtesy: Angel Commodities
India sugar ends higher on firm spot demand
Sugar futures extended gains of the previous day and settled 0.66% higher on Friday on reports of lower sugar recovery till date in Maharashtra as compared to last year. Further, as Sugar mills in Uttar Pradesh have not started crushing, farmers are supplying canes to the jaggery manufacturers. This is also supporting sugar prices. Decision on the sugar exports has been deferred till November 21, 2011.
So far 116 mills in Maharatsra are operating out of over 160 expected to produce, and have churned out 311,000 tonnes of sugar compared with 390,000 tonnes a year ago.(source: Reuters)
Further, reports that the Empowered Group of ministers may consider fresh Sugar exports on 21st November are likely to provide support to the prices.
ICE Raw Sugar futures and LIFFE settled 0.29% and 0.95% down on Friday with sustained concerns of Euro debt crisis. Possibility of decision on exports of sugar from India is also weighing on the prices. However, buying by Malaysia coupled with issuance of import quota by Mexico may lend support to the international prices.
Brazil sugar exports down 17% Y-Y in October 2011. Brazil exported 2.55 million tonnes of sugar in the month of October 2011 on account of less cane and sugar output.
Domestic Sugar updates
Cane output in Maharashtra is expected to rise to 82.5 mn tn during 2011-12 from 80.3 mn tn last year, while sugar output is likely to increase about 2.5% to 9.3 mn tn.
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
According to UNICA, Sugar production in Brazil's center-south in the second half of Oct dipped 23.5 percent from a year ago, as more mills ended crushing the 2011/12 cane crop. Sugar output totaled 1.47 million tonnes, down from 1.92 million tonnes a year earlier. Eighty-nine out of the 310 existing mills in the region had concluded crushing by Nov. 1.
China, the world's largest sugar consumer, has imported 1.6 million tons of sugar in the first 11 months of 2011, with preliminary data for the full year likely to be issued around October 10.
Courtesy: Angel Commodities
NCDEX chana edge higher on active buying
Chana futures added to the gains of the previous day and settled 0.26 % higher on Friday on account of improved buying at the support levels. Spot prices also ended 0.97% higher owing recovery in demand from the local stockists.
There are reports that supplies in the global markets are tight. This will make imports costlier. Further, reports of lower sowing under pulses in A.P. and Karnataka due to dry spell are providing support to the prices.
According to the Ministry of Agriculture, pulses have been sown in 49.75 lakh hectares as on November 18th 2011 as compared to 46.33 lakh hectares in the last year same period.
The biggest jump has been in the area under gram in Madhya Pradesh (1.29 million hectares, up 80 per cent more than last year) and Rajasthan (13.33 lakh hectares, up 48 per cent). Together, they account for fourfifth of the gram produced in the country. Overall, acreage of all pulses, which also includes lentil and peas apart from gram, in these two states is almost 59 per cent and 65 per cent more than last year. (Source: Business Standard)
There are reports of decline in the output of dry peas and Chickpeas in Canada for 2011. Chickpeas output is expected to fall by 58% to 54 MT while that of peas will fall by 33% to 2 MT (Source: Agriwatch)
Pulses Imports
Imports have declined dramatically in the current FY 2011-12 with India's state-owned trading agencies having contracted imports of only 121,660 tn pulses since the beginning of the current financial year till September 12, 2011 compared with 596,700 tn during the same period last year.
Imports have been weak because domestic pulses output in 2010-11 (Jul- Jun) was at an all time high of 18.09 mln tn, up 23percent from a year ago. Also, the Centre has abolished one of the reimbursement schemes for the state-owned importing agencies.
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.
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
Guar seed settles higher on weak arrivals
Spot prices as well Futures settled 0.45% higher on Friday on account of reduced arrivals amidst demand from local stockists on Friday.
Expectation of revision in the Guar output will provide support to the prices.
Arrivals remained steady at 60,000 bags on Friday as compared to 70000- 75000 bags in the beginning of the month.
Despite of lower output estimates in the current season arrivals are much higher. This is because farmers this season are not holding back their stocks due to record high prices.
Record Average daily arrivals are hovering around 90 thousand to 1 lakh bags compared to 55-60 thousand bags in the previous year.
There are reports that higher prices of Guar gum have made users to think for other alternative cheaper sources of gum for Oil exploration. However, no confirm reports are available as of now.
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.
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 June of the current fiscal year 2011-12 stood at 1.45 lakh tn compared to 0.71 lakh tn during the same period last year.
Exporters believe that exports which had crossed over 4 lakh tn last year, may hit this year due on financial crisis in U.S & Europe along with shift in demand.
However the export figures clearly indicates that global crisis has not hit Guar exports as of now in the current season too.
Courtesy: Angel Commodities