Posts Tagged ‘commodity update’

COMMODITY WEEKLY COMMENTARY

Most of the commodities closed in positive territory when Federal Reserve repeated its pledge to keep monetary conditions loose for the longer term. Impact was seen on all metals and energy; despite the rise in dollar index. Base metals complex was no exception, copper traded in upside territory.

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Power distribution problems after a devastating earthquake in Chile also supported the price. Terrific short covering witnessed in nickel on the news that BHP Billiton would take up to two weeks to restart nickel production at its Kwinana refinery in Australia apart from other factors. Both, lead and zinc closed down.

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Event risk made energy complex volatile. OPEC for the fifth time since 2008 decided to maintain its production limits unchanged. Furthermore, crude stocks rose 1 million barrels last week, while distillate inventories fell 1.5 million barrels and gasoline stocks dropped 1.7 million barrels, according to EIA.

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Crude traded in upside territory but could not breach $83 per barrel. Worries about Greece’s debt problems capped the upside. Surplus in inventory gave a jolt to natural gas prices and its futures dropped to the lowest price in more than five months. Vague movements in dollar index and euro resulted in see saw movements in bullions. However, on Friday many commodities including base metals and energy complex erased their previous gains on rise in dollar index.

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Agri commodities on domestic front traded with sideways to bullish bias in the week gone by. Guar pack remained in range due to subdued trading activity in spot as well as future market. In oil seed section; soya bean prices traded in range while mustard seed futures gained smartly on NCDEX.

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Weak trend in overseas market and bearish domestic fundamental factors such as weak export demand for soya meal and ample inventories of edible oils capped the upside in soya bean prices. The sharp decline in Malaysian palm oil futures had also pressurized the prices. However, mustard futures gained on the back of strong fundamentals. Lower production projection for the current year had a positive impact on the market.

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In spices pack; turmeric and pepper shot up like a bullet last week while chilli and jeera futures remained range bound. Pepper futures traded on a positive note due to continued fresh buying on the exchange supported by the factor of tight supply situation amid gaining demand. Despite the expectations of increase in production, arrivals are on the lower side. This is leading to tight supply in the physical markets. Turmeric futures gained consecutively for the sixth week and hit contract highs in the week gone by on firm spot cues and low stocks, but conceded the gains by the end of the week on profitbooking.

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Rising arrivals and ample carry forward stocks were seen weighing on chana futures as prices settled in red zone.

Pepper Futures Remain Unchanged :|

The pepper futures market witnessed high volatility on different “buy and sell calls“. Finally it closed just about steady on weak demand amid thin arrivals.

“There was no pressure on spot as all were seen prepared to switch over and going for additional buying as spot was not available,” market sources said.

“Good badla was taking place,” they said. Investors were offering spot at reduced discount of Rs 200 per quintal below the January price but there were no takers.

Processors in the primary markets and inter-State operators were buying from the primary markets and moving the material out to Tamil Nadu where no tax is levied on the commodity. From there the material is shifted to Bihar, Jharkhand, UP, West Bengal etc., where the local taxes are said to be at 12 per cent and therefore the dealers there do not buy on account, according to the sources.

In other major commodity update Coonoor auctions remains unsatisfactory

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Coonoor auctions remains unsatisfactory

The auctions of Coonoor Tea Trade Association for the year 2009 ended in discontent for the producers. Auctions remains unsatisfactory, as around 30 per cent of the six-week high 14.29 lakh kg offered at Sale No: 52 remained unsold despite shedding Rs 3 a kg. Market remains closed for a fortnight for the yearend and the first sale of 2010 will be held on January 7.

35 per cent of leaf and 27 per cent of dust offered remained unsold with continuing the trend of the past more than a month.

Among CTC teas from bought-leaf factories, Homedale Estate, auctioned by Global Tea Brokers, continued to fetch the highest price in both leaf and dust markets. “Our Broken Pekoe (BP) got the highest price of Rs 135 a kg in the leaf market. Our Pekoe Dust (PD) got the highest price of Rs 134 in the dust market. In all, three of our grades got Rs 127 and more,” Mr Prashant Menon, Homedale Managing Partner, said. “Our Darmona grades got the second highest bid of Rs 130 in both leaf and dust markets and five of our grades got Rs 123 and more,” Mr Dinesh Raju, Darmona Managing Partner, said.

Among orthodox teas from the corporate sector, Curzon got Rs 160, Chamraj Rs 143, Corsley Rs 142, Tiger Hill Rs 139, Kairbetta Rs 132, Havukal Rs 128, Coonoor Tea Rs 127, Glendale, Colacumby, Singara and Mailoor Rs 122 each, Quinshola Rs 121 and Sutton Rs 120. In all, 28 grades got Rs 100 and more.

CROP FORECASTING – “PAST – PRESENT – FUTURE”

Hello Friends here we come up with our another write up on “SMC Gyan Series

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CROP FORECASTING - “PAST - PRESENT – FUTURE”

CROP FORECASTING - “PAST - PRESENT – FUTURE”

Here we would get into the nitty gritties of CROP FORECASTING.

Why is it required and what are the objectives of CROP ESTIMATION SURVEY?

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Agriculture occupies a dominant place in the economy.

It is the main source of livelihood of the majority of the population of the country.

Making available food-grains sufficiently to this huge population of the country throughout the year is very much necessary, & this needs making an advance plan or estimation to predict crop yields.

Crop estimation is a “MUST” for agriculture.

There are number of reasons why a good estimation is required.

Accurately estimating the size of the crop will take the pictures or the scenario size of the crop just before harvest, increasing farming costs for that year.

Overestimate the size of the crop will mean that the quality or quantity may not be achieved.

Therefore for the accurate results, many research advance techniques are used.

A sort of track record is maintained for maintaining & achieving the accuracy of crop estimation.

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OBJECTIVE OF CROP ESTIMATION SURVEY:

The main objectives of the crop estimation survey are:

i. To provide estimates of area under and production of principal food and non-food crops with a high degree of precision at the block/ district/state levels.

ii. To provide estimates of productivity of different crop at block/district/state levels.

iii. To collect useful ancillary information on the existing cultivation practices in the State.

iv. To throw lights on the cropping pattern of the State/Districts/Blocks etc.

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Stay Tuned for more on this where we would get to know of that what are the procedures of crop estimation survey.

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India May Import 3 Million Tonnes Sugar In 2010/11

Hello Friends here we come up with the Latest Major Agri-Commodities updates from various parts of the globe.

India May Import 3 Million Tonnes Sugar In 2010/11

India May Import 3 Million Tonnes Sugar In 2010/11

India, the world’s biggest consumer of sugar, may import 2.5-3 million tonnes of the sweetener in 2010/11 as domestic output is seen falling short of demand for a third straight year.

Raw sugar futures had rocketed to 28-½ year top on huge imports from the South Asian country, while whites hit a record earlier this year.

In 2009/10 season lower area and drought will keep India’s output at 15.3 million tonnes, a little more than last year’s output of 15 million tonnes, falling severely short of domestic consumption for a second straight year.

There is a margin of 200 rupees per quintal (100 kg) in imports.

So, provided the domestic prices remain firm, millers in Maharashtra would be interested in buying more raw sugar.

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In Other major Commodities Updates we can see that World coffee output may fall in 2009-10

World coffee output may fall in 2009-10: Trade body

Global coffee production during the 2009-10 crop year may dip below last year’s level of 128.1 million bags due to bad weather in top three growing countries — Brazil, Vietnam and Colombia, according to the International Coffee Organisation (ICO).

If production falls are confirmed, the global coffee exports are also expected to decline this year.

Production in Brazil, the world’s biggest coffee producer, is estimated to be 39 million tonnes in the 2009-10 season, against 45.99 million bags in a year ago.

ICO said, however, production is expected to rise in Asia, Africa and Central America.

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