Commodity Online Agri Service
India Pepper futures continued to move in south-ward direction on weak export demand and limited trading activities in the domestic market. Chana prices gained this week on festival demand which resulted in active buying by millers and stockiest. Turmeric prices weakened while Wheat prices gained on physical market demand.
Pepper
Indiapepper futures fell this week due to absence of export demand. The prices continued to head south on limited activities. There were no sellers in the physical market.
In global markets, reports fromVietnamsaid its pepper market firmed up today on good buying support fromChina. Price indications were that 500gl at $5,550 a tonne fob HCMC and 550gl at $5,900 a tonne and white double washed at $8,150 a tonne. Prices for Lampong ASTA quality indicated today at $ 6,600-6,650 FOB levels.
AtKochi, pepper was trading 107 rupees higher at 27,400 rupees per 100 kg. The most active July futures contract at National Commodity and Derivatives Exchange (NCDEX) closed lower by 0.37 % at Rs.271297 per quintal after hitting a low of 26825. August contract opened this week at Rs.27700 per 100 Kg and closed lower by 0.30% at Rs.27616 per quintal.
During April-March 2010-11, a total quantity of 18,850 MT of pepper valued Rs.38318.50 Lakhs ($84.13 million) was exported as against 19,750 MT valued Rs.31392.50 lakhs of last year. The unit value of pepper has increased from Rs.158.95 per kg in 2009-10 to Rs.203.28 per kg during 2010-11.
According to IPC’s projection, pepper output inIndiais estimated near 48000 tons compared with 50,000 in the previous year. Unconfirmed sources also expect the production to be lesser than the earlier projections. While the domestic consumption is estimated 2011 in 45000MT as against 44000 MT in 2010
The Global Production to be 2.03% lower in 2011. Consumption to grow at 5% in 2011 as against 3.46% in 2011 According to department of Commerce Vietnam Exports was had reached 9919MT down by 28 percentage in volume.
(Is pepper set for continued weakness in spot markets?)
Chana
Chana futures inIndiarose this week on festive demand from local millers. Disruption in vegetable supply during the rainy season boosts demand for pulses like chana. Consumption usually increases during festive season starting in August.
InDelhi, a key spot market, chana rose 57 rupees to 2,750 rupees per 100 kg. At NCDEX July delivery contract opened at Rs 2745 per 10 MT and closed 3.35% higher at Rs 2837 whereas Chana August contract opened at Rs.2818 and ended at Rs.2917, up by 3.51%.
Kharif Pulses sowing has started inMaharashtraand AP. Indian Metrological department (IMD) has initially forecasted a normal monsoon for 2011 season. However, on 21st June, 2011, IMD has released a second Long Range Forecast wherein it has predicted monsoon to be below normal i.e only 95% of the Long Period Average.
Also, in the peak growing period, of July and August, IMD has predicted monsoon to be 93% of LPA. In Central India andSouth Peninsula(Kharif Pulses producing regions) monsoon are expected to be 95% of the LPA.
Production of Chana as well as Pulses in the current crop year is estimated higher at 7.38 million tonnes and 17.29 million tonnes respectively. Planning Commission has estimated that the demand for pulses in the country during the period 2011-12 is 19.11 million tonne.
(Will Chana prices correct on profit booking?)
Soybean complex
India's oilseeds and soyoil futures gained tracking global cues that outweighed concerns over soybean sowing in second biggest producing Maharashtra state. In global markets also soybean rose on speculation that reduced Midwest plantings will trim supplies from theU.S.
In theIndorespot market, soyoil fell by 1.7 rupees to 636.35 rupees per 10 kg, while soybean fell by 14 rupees to 2,278 rupees per 100 kg. At Sri Ganganagar in Rajasthan, rapeseed dropped 23 rupees to 2,775 rupees per 100 kg.
In futures market, NCDEX July soybean prices rose in the weekend to finish 0.84% higher at Rs 2320.50, while August Soybean prices rose to Rs.2338 higher by 1.60%. July soy oil also recovered in the weekend to end 0.84% higher at 641.35 per 10 MT, August contract rose from Rs 638 to Rs 641.75 per 10 MT on week.
At CBOT, on Friday Soybean futures for July delivery rose 16 cents, or 1.2 percent, to $13.2225 a bushel. The contract rose 0.2 percent this week.
The USDA’s weekly export inspections came in at 8.73 million bushels which was slightly higher than expected and compares with 12.17 million bushels necessary each week to reach the USDA projection for the old crop season. Talk that drought conditions in the southern plains could expand east into southern soybean growing areas also provided support to soybean prices. However, pick up in soybean sowing in Madhya Pradesh after receiving a better rain in major growing regions may cap sharp gains.
Government has raised the Minimum Support price (MSP) of Soybean to Rs.1,690/qtl from Rs.1,440/qtl. This will induce farmers to go for improved sowing of the soybean.
(How far will weak monsoon affect soybean production?)
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