Posts Tagged ‘Ethanol’

SUGAR……. “Ambas as extremidades de cana de açúcar não pode ser doce”

In Portuguese language “Ambas as extremidades de cana de açúcar não pode ser doce” means both ends of sugar cane cannot be sweet. Sugar travelling though its notorious cycle has always been continuously gathering news & issues all along these years. Starting with the sugar cycle, it follows a 3-4 years cycle with a bumper harvest resulting in higher inventory levels. Declining prices pressurizes the profits of sugar companies. Going around the downtrend in the sugar cycle starts with increased availability of sugars, decline in sugar prices. This prompts the farmers to switch over to other crops resulting in lower cane production. All these leads to higher sugar prices and the cycle turns around.

.

FOREIGN NEWS

.

•Mexico published a quota to import 100,000 tonnes of sugar to cover a shortfall in supply until the end of the year.

.

•Tight supply supports raw sugar.

.

•The US Department of Agriculture (USDA) has pegged India’s sugar production at 23.6 million tonnes, marking an increase of over 26 per cent from last year.

.

•Brazil crops shrivel as Amazon dries up to lowest in 47 years.

.

•Brazil will harvest 639 million tons in the year started May 1, 3.2 percent less than estimated in April.

.

•Australia’s 2010/11 sugar output is being threatened by heavy rain in the northeastern cane growing state of Queensland, disrupting this year’s cane crush.

.

•Liffe front-month, December white sugar ends $24.20 higher at $649.80 per tonne after earlier setting a 7-month high for the front month of $661.80 a tonne.

.

•Market buoyed by a fresh wave of fund buying and crop concerns in South Africa, Argentina, Mexico and Australia.

.

DOMESTIC NEWS

.

•Sugar production in Uttar Pradesh, may rise to 6.2 million tonnes from 5.18 million tonnes in the review period.

.

•Sugar output in Karnataka is likely to decline marginally to 2.3 million tonnes this year from 2.53 million tonnes last year.

.

•Sugar output in Tamil Nadu may jump sharply to 2.1 million tonnes in the 2010-11 crop year from 1.25 million tonnes last year.

.

•The output in Gujarat is pegged at 1.3 million tonnes against 1.19 million tonnes last year.

.

•Cane growers seek higher prices of 200 rupees ($4.49) per 100 kilograms.

.

•NCDEX seeks permission to do futures trading in sugar.

.

•The Government has declared lower October sugar quota at 17.50 lakh tonnes (lt) against September’s 19 lt.

.

•Sugar imported from India will be tested before its sale in Pakistan, said a minister who rejected the impression that Indian sugar was substandard.

.

Seasonality – Indian Scenario

.

Analyzing the seasonal index of Indian sugar prices, the prices remain under the pressure till the third quarter of the year. The fourth quarter is a seasonal buying period, as the market witness a recovery because of the festive season.As far as the medium to long-term outlook is considered, the price trends in international markets would be the key determinants of future profitability with the crude oil price trends, which determine the diversion of cane crop to ethanol.

.

OUR Websites:  http://www.smcindiaonline.com,http://www.smccapitals.com,
http://www.smctradeonline.comhttp://www.smcwealth.com

.

Share/Bookmark

Agri industry incurring Rs 76,500 cr annual loss

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

.

Agri industry incurring Rs 76,500 cr annual loss

.

Agri industry incurring Rs 76,500 cr annual loss:

.

Faced with an annual loss of Rs 76,500 crore, the Indian agriculture industry needs to gear up infrastructure facilities as also the allied food processing industry on a war footing.

.

A top official of National Dairy Research Institute Deemed University, Karnal has said so, on Monday.

Out of the loss of Rs 76,500 crore, equivalent to the annual budget of three big states,

Rs 52,400 crore accounts for perishable fruits, vegetables and poultry products.

The huge loss, despite annual agriculture production of 149 million tons, was mainly due to

an inefficient supply chain, very low food processing and huge post harvest loss, he said.

.

.

In Other major Commodities Updates, we can read that Oil firms have agreed to pay Rs 27 a litre, or 25% higher from existing level, for buying ethanol from sugar mills for doping petrol.

.

Oil firms agree to pay 25% more for ethanol:

.

After years of wrangling between oil marketing companies and sugar millers over the price at which ethanol should be sold

for fulfilling the government’s commitment of 5% blending with petrol, a consensus on the price seems to have been arrived between both the parties.

.

State-owned oil companies are believed to have agreed to pay Rs 27 a litre, or 25% higher from existing level, for buying ethanol from sugar mills for doping petrol.

Indian Oil, Hindustan Petroleum and Bharat Petroleum have agreed to raise ethanol procurement price from Rs 21.50 a litre to Rs 27 per litre.

.

The companies will not float any new tender but will buy any ethanol offered at these rates.

Currently, oil marketing companies (OMCs)—

Indian Oil, Hindustan Petroleum and Bharat petroleum—pay Rs 21.50 to buy a litre of ethanol while the sugar millers were seeking a price up to Rs 31 a litre.

The state-run oil firms had previously expressed willingness to pay Rs 26 a litre, a rate which was not acceptable to millers.

.

Sources said a compromise was reached at Rs 27 a litre.

.

🙂

.

Note : For More Latest Industry, Stock Market and Economy News and Updates, please Click Here

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

🙂

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.

🙂

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.

🙂

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.

🙂

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.

🙂

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).

🙂

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.

🙂

Note : For More Latest Industry, Stock Market and Economy News and Updates, please click here