Posts Tagged ‘Corn’

Wheat Falls as Rally, Dollar Gain May Curb Demand for U.S. Crop

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

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Wheat Falls

Wheat Falls as Rally, Dollar Gain May Curb Demand for U.S. Crop:

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Wheat dropped on speculation that a price rally to a three-week high and the dollar’s rebound may reduce demand for the U.S. crop.

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Corn and soybeans also declined.

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The grain yesterday jumped 5 percent, the most since Nov. 11, leading gains in corn and soybeans on speculation that fund managers will purchase agricultural commodities at the start of 2010, anticipating improved demand as the global economy strengthens.

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Wheat for March delivery declined as much as 1 percent to $5.45 a bushel on the Chicago Board of Trade and traded at $5.4575 as of 10:49 a.m. in Tokyo.

The contract yesterday touched $5.51, the highest level since Dec. 8.

The grain has lost 11 percent this year.

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In Other major Commodities Updates, we have news of edible oil industry, urging a tightening of futures trading in oils and oilseeds.

Industry wants tighter oil, oilseeds futures norms:

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With oilseed crushers feeling the pinch on their margin due to rise in oilseed prices, which, they feel, have been fuelled by speculations in futures trading, the edible oil industry is urging a tightening of futures trading in oils and oilseeds.

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Raising the issue, the Solvent Extractors’ Association of India (SEA) has suggested the Union consumer affairs ministry that new futures contracts for oilseeds should be restricted to current plus one month only.

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As for existing futures contracts for the next six months, the traders should be asked to square them off on the date of settlement next month.

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Moreover, all contracts have to be backed by a minimum quantity of delivery, suggested SEA.

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It has further requested the ministry to enhance the margin on trading to such a level, which would discourage speculators entering into this arena.

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Industry expects 44% rise in sugar output next season

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

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Industry expects 44% rise in sugar output next season

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Industry expects 44% rise in sugar output next season:

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India’s sugar output is expected to rise by 44% to 23 million tonne in the crop year that starts from October 2010, an industry official said, as higher prices are likely to support cane cultivation.

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The output in 2010-11 would be substantially higher than an expected 16 million tonne during 2009-10, Vinay Kumar, managing director of the National Cooperative Federation of Sugar Factories Ltd, told.

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Bumper planting is going on in Uttar Pradesh because of higher prices.

Producers are raising price of cane every week, Kumar said.

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In Other major Commodities Updates we can read that Corn, Soybeans are expected to rise with the rise in crudeoil prices and decline in dollar value.

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Corn, Soybeans May Advance as Crude Oil Rises, Dollar Declines

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Corn, soybeans and wheat were little changed and may climb on speculation that the dollar’s decline and rising crude oil may increase demand for the crops used for food, animal feed and alternative fuel.

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Corn for March delivery fell 0.1 percent to $4.0425 a bushel in electronic trading on the Chicago Board of Trade at 10:51 a.m. in Tokyo after gaining 1.5 percent yesterday, the biggest gain since Dec. 11.

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Before today, the contract fell 3.1 percent this month, the first drop in four months. March-delivery soybeans climbed 0.3 percent to $10.12 a bushel.

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The contract rose 1.1 percent yesterday after the Department of Agriculture said U.S. exporters sold a total of 367,000 metric tons in transactions with Italy, China and buyers that weren’t identified.

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Cumulative U.S. sales from Sept. 1 to Dec. 10 are up 53 percent to 29.554 million tons.

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CORN- The Un-discovered Legend Part 2 :)

Hello Friends here we come up with an extension of our previous blog, CORN………. “The Un-discovered Legend” Part 1

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CORN- The Un-discovered Legend Part 2

In previous Blog we had touched upon few points related to importance of Maize crop in Indian commodity market and its relevance in the context of Indian Scenario 🙂

In this blog, we would get to know of Potential sources of demand for Maize crops and industrial demand of maize crop.   Also read about the PVO (Price-volume-open Interest) Analysis of the Crop.

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Potential sources of demand:

The apparent increase in consumption demand has been sourced from the preference for corn based food products for human consumption as well as increased use in feed industries.

Human consumption – corn flakes, corn oil, corn flour, etc.,

Feed industry – poultry & animal feed

Ethanol – maize has already proved to be a potential source of ethanol.

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Corn consumption has seen a rapid growth during last few years.

Indeed, consumption patterns have changed at an accelerating pace especially during the winter season; from the time when it has
been introduced in numerous shopping malls around the world in the form of popcorns, baby corns etc.

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Industrial demand:

This commodity has placed itself in an advantageous position & made its presence felt in the industry.

Maize is a key ingredient in animal feed mix, & being the animal feed sector growing at a healthy pace with increasing demand for
meat and milk and milk products, coupled with stagnation in cattle population, there is a rising need to feed the existing population
of cattle with quality feeding.

Therefore, this has opened a window of opportunity for strengthening of global corn prices, which in turn is triggering enormous
demand for Indian maize in the Asian regions.

With the growing demand & expansion of starch sector, the overall demand for maize is likely to grow at a brisk pace.

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Change in % from 2008-09 to 2009-10 (India) Source: USDA

Area Harvested: 11.44%

Beginning Stocks: 51.72%

Production: 0.10%

Total Supply: 1.60%

Total Consumption: -1.1%

Ending stocks: 12.55%

Total Distribution: 1.60%

These positive figures indicate that India has sufficient & comfortable stocks of maize.

In 2009-10 the area harvested (India) is expected to increase by 11.44%, while the consumption is expected to remain almost flat or marginally down in next year.

The ending stocks are also quite high which can pressurize the prices in long term.

In a monthly update on 10th November 2009, USDA cut the corn forecast by 1 percent to 12.921 billion bushels (328 million tonnes).

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PVO (Price-volume-open Interest) Analysis:

Maize futures have proved the old saying “Slow & steady wins the race”.

The prices, volume & open interest in maize futures both in NCDEX & CBOT which had taken a backseat during the beginning of the
year 2009, have been rising again without much volatility in their behaviour.

The prices have been rising from the levels of Rs.795 to Rs.965 during January to November’09, which resulted into bull-run and resultantly futures made a high of 1015 levels on 3rd November ’09, giving a return of 21% till now.

Since the month of March ’09 prices have been seen rising witnessing some corrections during their journey; however factors like
higher international prices & continuous demand from starch & poultry industries have supported the prices.

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CORN………. “The Un-discovered Legend” Part 1

Hello Friends here we come up with another write up on “Commodity Corner Series”.

Here we would touch upon the importance of Maize crop in Indian commodity market and its relevance in the context of Indian Scenario 🙂

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CORN………. “The Un-discovered Legend”

Maize, also known as corn, is a cereal which is an important crop after rice and wheat.

The domestication of maize has been dated back as far back as 12,000 years ago. Today, maize is widely cultivated throughout the world, in a greater size with top producing countries like United States, China, Brazil, France, Indonesia, India and South Africa.

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Indian Scenario:

Andhra Pradesh is now the largest producer contributing around 21% of annual maize production.

India ‘s area harvested of maize and yield have risen by mainly on account of rising production of single cross hybrids seeds, its demand and increasing acceptability among farmers.

In India, its cultivation extends from the hot arid plains of Rajasthan and Gujarat to the wet hills of Assam and Bengal.

There are three distinct seasons for the cultivation of maize:

the main season is kharif;

next is Rabi in Peninsular India and Bihar and

in spring in northern India.

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Normally, higher yields have been recorded in the rabi and spring crops.

Over 85 per cent of the maize acreage is sown under rain-fed conditions during the monsoon when over 80 per cent of the annual rainfall is received.

However, this year due to the erratic monsoon production has been affected, as a result of which maize prices have been in uptrend since the withdrawal of monsoon from the country.

During 2008-9, Indian exported 3 million tonnes of maize and 12,000 tonnes of maize seed worth of Rs 2,400 crore and Rs 2,000 crore respectively.

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Stay Tuned for more on this.

In next blog we would touch upon the issues like Potential source of demand for Maize crop, Industrial Demand and PVO (Price-volume-open Interest) of MAize crops.

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Centre May Raise Coffee Package to Rs 802 Crores

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

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Centre may raise coffee package to Rs 802 cr

Centre may raise coffee package to Rs 802 cr

Centre may raise coffee package to Rs 802 cr:

The Centre is likely to increase the debt relief package for coffee growers to Rs 802 crore, 58 per cent more than the recommendations of Coffee Board, Union minister of law and justice, M Veerappa Moily said.

There are discussions at different stages to work out the package.

The figures of the total loan owed by the coffee industry to banks are Rs 1,700 crore.

The coffee board recommended a scheme for Rs 504 crore.

The coffee growers are in need of an urgent relief package, so as to give them a one-time life line to come out of the crisis.

The coffee industry is continuously facing low productivity due to drought of 2003 and 2004, which have had a domino effect on productivity.

In Other major Commodities Updates we can see how Corn, Soybeans advanced on the Speculation of excess rains which can delay the harvesting of crops”.

Corn, Soybeans Rally on Speculation Rains to Delay U.S. Harvest:

Corn and soyabeans advanced on the concern that higher-than-normal rainfall in parts of the U.S. may raise the risk of yield losses in the world’s biggest exporter of both crops.

Above average rainfall was forecast in producing states, including Iowa, Illinois, Nebraska and Indiana between Nov. 21 and Nov. 25, according to a U.S. Climate Prediction Center report dated Nov. 15.

The four states are among the biggest corn and soybean growing areas in the U.S. Corn for March delivery added as much as 0.9 percent to $4.0925 a bushel in after-hours electronic trading on the Chicago Board of Trade, and was at $4.09 as of 9:58 a.m. Singapore time.

Soybeans for January delivery climbed as much as 1.4 percent to $10.0125 a bushel in Chicago and last traded at $9.9475.

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Wheat Sowing Starts, to Gather Pace After Cane Fields Vacated

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

Wheat sowing starts, to gather pace after cane fields vacated

Wheat sowing starts, to gather pace after cane fields vacated

 

Wheat sowing starts, to gather pace after cane fields vacated:

Sowing of wheat, the biggest foodgrain grown during the rabi season, has started in some parts of the country.

The crop has been planted in around 25.7 lakh hectare till November 5, almost 9.4% less than the same period last year.

Though wheat sowing has got off to a slow start this year, but still there is not much concern as the delay is mainly due to late harvesting of kharif crops.

Sowing of rapeseed has also started on a weak note and till Thursday, around 3.48 lakh hectares of land has been brought under the crop as against 6.65 lakh hectares sown during the same period last year.

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In Other major Commodities Updates we can see that Mentha oil futures have turned weak and Corn and soybeans have fell for the third straight day.

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Mentha oil futures turn weak:

Mentha oil futures prices fell by 0.30 per cent today as traders indulged in profit-booking at higher prices amid fall in demand in the spot market.

Increased arrivals from producing belts in Uttar Pradesh also put pressure on the prices.

At the MCX counter, mentha oil for November contract declined by 0.30 per cent to Rs 533.60 a kg clocking business volume in 201 lots.

Similarly, mentha oil for delivery in December contract eased by 0.26 per cent to Rs 540.20 a kg in business turnover in 53 lots.

Fall in mentha oil prices was mostly due to profit-taking by speculators and subdued trend in spot markets.

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Corn, Soybeans Fall as Warm, Dry Weather May Speed U.S. Harvest:

Corn and soybeans fell for the third straight day on speculation that warm, dry weather will hasten U.S. harvesting, boosting supplies for food and feed producers.

Weather conducive to field work is expected across the Midwest in the next 15 days.

About 49 percent of U.S. soybeans and 75 percent of the corn remained to be gathered as of Nov. 1, according to government estimates.

Grain and oilseed markets also fell on reduced investment demand for raw materials as an inflation hedge.

The rising unemployment rate is not good news for demand.

Corn futures for December delivery fell 9.5 cents, or 2.5 percent, to $3.67 a bushel on the Chicago Board of Trade.

The decline pared the week’s gain to 0.3 percent, the fourth increase since Oct. 2.

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Imposition of Addl. Margin on Turmeric

Hello Friends here we come up with the Latest Agri updates in the country.

Imposition of Addl. Margin on Turmeric

Imposition of Addl. Margin on Turmeric

Imposition of Addl. Margin on Turmeric

As per notification & NCDEX Bye laws, Rules and Regulations of the Exchange, in addition to existing margins, special margin of 10% on long side will further be imposed on all running contracts of Turmeric (Symbol : TMCFGRNZM), effective from the beginning of trading day November 4, 2009.

Thus the total special margin on the long side of all running contracts and yet to be launched contracts in Turmeric shall be 20% with effect from November 4, 2009.

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In Other major Agri Updates we can see that Corn, Soybeans have Dropped as rally to One-Week High may erode Demand whereas Strong Demand has kept Cardamom firm.

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Corn, Soybeans Drop as Rally to One-Week High

May Erode Demand :

Corn and soybeans declined for the first time in three days on speculation that their rally to one-week highs may reduce demand for U.S. supplies.

Wheat climbed. Corn gained 6.6 percent the past two days and the oil-seed rose 3.5 percent after wet, freezing weather delayed Midwest harvests last month.

As well production in the U.S. may be curbed by above factors. USA is the largest grower and exporter of both crops.

The U.S. Department of Agriculture will update its crop forecasts on Nov. 10.

The soybean crop will reach 3.325 billion bushels, less than the Oct. 7 forecast of 3.411 billion, the Linn Group said.

Last month, the USDA predicted a record 3.25 billion bushels, up from 2.967 billion collected in 2008.

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In another Update,

Demand keeps cardamom firm :

The average cardamom prices vacillated between Rs 670 and Rs 710 a kg during last week at auctions held in Kerala and Tamil Nadu and good demand despite heavy arrivals.

In fact, the arrivals at the KCPMC auction on Sunday at Vandanmettu were the highest with 75 tonnes, ever since the commencement of e-auction in December 2007.

Buyers both domestic and export were active.

Around 35 to 40 tonnes of cardamom was bought by exporters. North Indian buyers were covering for their requirements for the winter.

They were actively buying on the apprehension that the prices might go up further in the coming days due to a likely squeeze in supply once the peak harvesting season gets over.

The weighted average price as on November 1, 2009 stood at Rs 681.11 a kg as against Rs 593.83 a kg on the same day last season.

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