Posts Tagged ‘Kerala’

RUBBER – STRETCHING & MOVING ON THE WAY AHEAD Part 1

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

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Topic is RUBBER ………… “STRETCHING & MOVING ON THE WAY AHEAD”

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RUBBER - STRETCHING & MOVING ON THE WAY AHEAD

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We would touch upon aspects like the investment scenario of rubber in India and price movement of the rubber in Indian market.

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We would also read about the gap in the demand and supply of the rubber in the market.

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Rubber is springy & has the potential energy of getting stretched.

These properties are also seen in the price movement of the prices.

The year 2009, has given stretchable & phenomenal return on investing in rubber futures.

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INDIAN SCENARIO :

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The four-month period between October and January is the peak season of rubber output in the country.

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The total area of plantations in the country is 662,000 hectares of which 92-93 per cent is in Kerala.

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Tripura is the second-largest rubber planting state in India after Kerala.

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DEMAND & SUPPLY GAP –Walkthrough 2009:

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As we know that profit increases when the difference or the gap between the cost price & the selling price increases.

This immense gap was witnessed in rubber prices.

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Tight supply & tracking the rise in Asian markets like Tokyo and Singapore gave momentum to the prices to rise through out the year.

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The Indian industry consumed 356,400 tonnes of natural rubber (58 per cent of the total domestic consumption) during April-November.

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In April-November, natural rubber production in India dropped 6.5 per cent at 538,125 tonnes against an increase of 3.5 per cent in consumption at 614,600 tonnes.

So there was a gap of 76,475 tonnes in production and consumption.

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PRICE MOVEMENT “Focus on the journey, not the destination”:

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The spot prices at the benchmark Kochi had begun its journey at Rs.67.23/Kg & touched the high of Rs. 139.19 within a year.

Strong appreciation in prices in all major global markets which touched Rs 130.48 per kg, made the domestic market bullish.

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Similarly, the futures at MCX posted a gain of 78.94% as of 22nd December, 2009.

This spike was also supported by the increased gap between production & supply.

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Next Blog we would read about the impact of the shortage of rubber industry on major industries and the scenario of the rubber production in other countries.

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Stay Tuned for more on this.

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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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