Posts Tagged ‘production’

Lets Know About Economic Indicators :)

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

.

Lets Know About Economic Indicators

.

Topic is “Economic Indicators”.

.

Economic indicators are important as they provide an accurate account of nation‘s economy at various points of time.

.

There are various types of economic indicators that deal with different periods of time and there are others that deal with separate administrative divisions like states for example.

.

They are important in context of analyzing nation’s economy.

.

In this Blog, we would know what are major economic indicators ?

.

Major Economic Indicators :

.

1. Industrial Production:

.

Measures the change in the production of the nation’s factories, mines and utilities, industrial production.

Also measures the country’s industrial capacity utilization.

2. Gross Domestic Product (GDP):

.

Indicates the pace at which a country’s economy is growing or shrinking.

3. Purchasing Managers Index (PMI):

.

This index includes data on new orders, production, supplier delivery times, backlogs, inventories, prices, employment, export and import orders.

4. Producer Price Index (PPI):

.

Measures average changes in selling prices received by domestic producers in the manufacturing, mining, agriculture, and electric utility industries.

The PPIs most often used for economic analysis are those for finished goods, intermediate goods, and crude goods.

5. Consumer Price Index (CPI):

.

Measures the average price level paid by urban consumers (80% of the population in major currency countries) for a fixed basket of goods and services.

6. Durable Goods:

.

Measures new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods.

This figure is a useful measure of certain kinds of customer demand.

7. Employment Cost Index (ECI):

.

ECI counts the number of paid employees working part-time or full-time in the nation’s business and government establishments.

8.Retail Sales:

.

It is the indicator of broad consumer spending patterns and is adjusted for normal seasonal variation, holidays, and trading-day differences.

9. Housing Starts :

.

Measures the number of residential units on which construction is begun each month.

Thus to conclude Economic indicators is a tool for an investor for knowing the economic world.

.

It also simultaneously a tool to smartly make money out of the sensitive movements of the financial & commodities market.

🙂

.

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

Jaggery(Gur) – “The Medicinal Sugar” Part 1

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

.

Jaggery(Gur) - "The Medicinal Sugar" Part 1

.

Here we would touch upon the aspects related to the commodity “Jaggery” also termed as a “Gur”.

We would also read about how it is formed, what is the market scenario of this commodity, current price value and production volume of jiggery in India.


🙂

Jaggery (Gur) is a coarse, unrefined sugar that has been made from sugar cane juice.

It is the natural mixture of sugar and molasses.

🙂

Formation:


This is considered unrefined and is produced by boiling raw sugar cane or palm juice in iron pans.

It is then formed into blocks.


As it does not go through additional processing, it does retain some of the natural vitamins and minerals of the ingredients used, though boiling the juice does deplete some of these.

Many people do consider jaggery healthier than more refined sugar since it is less stripped of natural nutrients.


This may be eaten in small slices alone as a dessert, or it may be combined with spices to make a variety of Indian desserts and candies.

Jaggery is most often available in cake form, and ranges from fairly crumbly to nearly rock-hard.

.

🙂

.

Market Scenario:


It is popular throughout southern and Southeast Asia.

Maharashtra is India’s largest producer and consumer of gur, with even a dedicated agricultural export zone.

Anakapalle is the biggest jaggery market yard in Andhra Pradesh and it caters to Orissa,West Bengal, Assam and other states besides Andhra Pradesh.

The major spot market is at the major terminal markets including Muzaffarnagar and Hapur.

.

🙂

.

Price-production Factor:


In 2009, the journey of gur futures at the NCDEX counter started at Rs.750 and is now ruling at Rs. 1100 per quintal.

These surges in prices have been influenced by the high sugarcane rates.


In 2008-09 season, which ended in September, some gur-making units in UP have paid as high as Rs 250-260 a quintal for sugarcane compared to Rs 150-155 a quintal by sugar mills, as the cane production was lower in the state.


Steep fall in production in the northern markets such as Uttar Pradesh and also in the South Karnataka has contributed to the price rise here.

Even in the other markets in AP, such as Nidadavolu in West Godavari, production has fallen drastically.


Drought in the State and uncongenial climate in the northern States were some of the contributory factors to the steep fall in production.

The sugarcane yields in Visakhapatnam, Vizianagaram, and East Godavari districts had fallen due to drought conditions and the recovery was also poor this year.


The festival demand for jaggery is strong all over the country thanks to Pongal festival in Tamil Nadu and Makara Sankranti in the northern and western regions.

It is nearly 56% over last year, largely due to dip in sugarcane availability.


Farmers are selling more cane to gur-making units as they pay higher than sugar mills.

The production in India is expected increase to 8.2 million tonnes in the 2009-10 season on higher prices.

Gur price has outpaced sugar price and as a result more sugarcane would be diverted for making gur during the ensuing 2009-10 season (October-September).

.

🙂

.

In next blog we would read about the Karnatka Govt initiative of setting up a Jaggery park at Mandya, the country’s fourth largest jaggery market.

Stay Tuned 🙂

.

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

Economic Indicators

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

Topic is “Economic Indicators”.

In this Blog, we would know what are major economic indicators ?

.

Economic Indicators

.

Major Economic Indicators :

.

.

Industrial Production:


Measures the change in the production of the nation’s factories, mines and utilities, industrial production.

Also measures the country’s industrial capacity utilization.

.

Gross Domestic Product (GDP):

Indicates the pace at which a country’s economy is growing or shrinking.

.

Purchasing Managers Index (PMI):

This index includes data on new orders, production, supplier delivery times, backlogs, inventories, prices, employment, export and import orders.

.

Producer Price Index (PPI):


Measures average changes in selling prices received by domestic producers in the manufacturing, mining, agriculture, and electric utility industries.

The PPIs most often used for economic analysis are those for finished goods, intermediate goods, and crude goods.

.

Consumer Price Index (CPI):


Measures the average price level paid by urban consumers (80% of the population in major currency countries) for a fixed basket of goods and services.

.

Durable Goods:


Measures new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods.

This figure is a useful measure of certain kinds of customer demand.

.

Employment Cost Index (ECI):


ECI counts the number of paid employees working part-time or full-time in the nation’s business and government establishments.

.

Retail Sales:


It is the indicator of broad consumer spending patterns and is adjusted for normal seasonal variation, holidays, and trading-day differences.

.

Housing Starts:


Measures the number of residential units on which construction is begun each month.

.

🙂

.

Thus to conclude Economic indicators is a tool for an investor for knowing the economic world.

It also simultaneously a tool to smartly make money out of the sensitive movements of the financial & commodities market.

.

🙂

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

Cardamom exports may touch 1.5k tonne mark

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

.

Cardamom exports may touch 1.5k tonne mark

.

Cardamom exports may touch 1.5k tonne mark

.

With exports racing towards  a new high and the domestic demand  remaining strong, the average cardamom prices have surpassed the Rs. 1,000 per kg mark for the first time.

.

The cardamom exports  for November 2009 stood at 275 tonne, taking the total exports in the april November period to 895 tonne compared with 370 tonnes  in the same period of the previous year.

.

In 2008-09, the cardamom export was 750 tonne.

With another four months to go  the growers and traders feel the export could register a new record this year.  That is something in the range of 1,500 tonne.

.

The harvest period is over and the growers are releasing  their stock to take advantage of the high price.

.

The upcountry buyers  are continuing their  purchase fearing a scarcity of the spice  in February as the existing stock with the growers could be exhausted.

.

The growers are expecting the prices to move further to 1200 per kg in the coming weeks with arrivals thining.

A lower production in the current year has also aided the rise in prices.

.

🙂

.

In Other major Commodities Updates, we have info on the ATMA recommendations to the Govt to suspend the tradings of rubber futures.

.

Suspend rubber futures – ATMA :

.

Unusual volatility in natural rubber prices, despite peak production season and record imports, smacked of speculative  manipulation in the commodity.

.

This view has been put forth by the association of automotive tyres manufacturers  association (ATMA).

.

ATMA has therefore, called for a suspension of futures trading in rubber in the wake of the  unusual volatility in natural rubber prices.

.

“As immediate and direct fallout of heavy speculative activity in natural rubber futures trading, the physical market for rubber is being unduly affected”.

.

R Singhania, chairman of the ATMA has said so in a note sent to commerce and industry minister Anand Sharma and agriculture minister Sharad pawar.

.

🙂

.

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

RUBBER – STRETCHING & MOVING ON THE WAY AHEAD Part 1

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

.

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

.

RUBBER - STRETCHING & MOVING ON THE WAY AHEAD

.

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

.

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

.

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.

.

INDIAN SCENARIO :

.

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

.

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

.

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

.

DEMAND & SUPPLY GAP –Walkthrough 2009:

.

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.

.

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

.

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

.

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.

.

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

.

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.

.

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.

.

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.

.

Stay Tuned for more on this.

🙂

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

🙂

Global Market Outlook 2009 and 2010 :)

SMC Market Outlook

.

With markets giving returns on investment more than 79% in 2009 and showing a strong sign of recovery from mid 2009 on the back of strong domestic demand, policy reforms and stimulus packages, 2009 calendar year emerged as the best year for investors since 2000.

🙂

FII’s have once again proved to be the front runners in terms of the inflow, pumping more than Rs 82,000 crore in the Indian market this calendar.

.

But 2010 promises to be another testing year as fiscal and monetary stimulus in many of the world’s major economies begins to wane.

.

After being in consolidation for most of the month, in the week gone by the domestic markets suddenly jumped back to life and closed at their highest in 19 months as investors rushed to buy stocks on renewed optimism, after foreign direct investment into the nation jumped 60% in the first eight months of this fiscal year.

.

The FM`s comments on GDP growth and encouraging cues from global markets also boosted the market.

.

Both the indices, Sensex and Nifty made a new high for 2009 on the eve of Christmas, rekindling the festive spirit.

Bulls were in a mood of rejoice as Christmas took Nifty to a new high of 5,197.90.

The year ends with more than a spark of hope, and next year seems to be a stable and profitable one.

However, we believe that markets would continue to be volatile and hence it is important to manage risk in the coming year too.


🙂


For the forthcoming week, markets may remain volatile as traders will roll their positions in the derivative segment from December 2009 series to January 2010 series ahead of the expiry of the near month December 2009 contracts on Thursday, 31 December 2009.

.

On the flip side higher advance tax figures by India Inc which suggests better Q3 December 2009 results, may support the market.

.

Corporate advance tax payments for the quarter were up 44% to Rs 48,300 crore against a 3.7% decline in April-June quarter and a 14.7% increase in July-September quarter.

.

The global developments also need to be seen for any further directions.

Furthermore, food price index data for the year to 19 December 2009 will be closely watched which is going to release on Thursday, 31 December 2009.

The high food price inflation is a major worry for the policymakers as they contemplate a right approach to tame hike in inflation which seems to be more of a supply side issue.

.

The next quarterly review of monetary policy is scheduled on 29 January 2010 which may also give some direction to the markets.

.

On the global economic front, the US economy grew at a revised annual growth rate of 2.2% in the third quarter, much slower than initially projected.

.

Japan’s unemployment rate rose to 5.2 percent from 5.1 percent in October, for the first time in four months in November, an indication job growth may not be strong enough to support the economy’s recovery from its deepest postwar recession.

.

The world stock markets are not ready to react on the downside and after every consolidation they are moving up only.

4960 on nifty is strong support as was mentioned in last week magazine and the nifty touched there and moved up sharply.

Even the base metals and stocks are not reacting to the strong dollar.

Till the trend of stock markets is up, one should be playing from the long side of it.

Nifty has support between 5050-4970 and Sensex between 17100-16700 levels.

🙂

New Year celebration may result in thin trading this week.It may impact domestic bourses as well.

Regarding outlook, dollar index will give next direction to precious metals. If it notices a pause in its rally then precious metals may trade in a range or vice a versa.

Base metals will remain volatile.

Gap between lead and zinc should shrink gradually.

Fresh buying in steel may keep nickel at higher side.

If US crude and other inventories continue to decline then fresh buying will stimulate in crude oil.

However, it already saw spiky moves hence upside is limited.

🙂

Food Inflation at 17.5%, Households Pay Price

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

🙂

Food inflation at 17.5%, households pay price

..

Food inflation at 17.5%, households pay price:

.

The government on Thursday said that the average wholesale price of food items had increased by a whopping 17.5% in the past one year.

.

The figure was 15.6% a week ago.

.

RBI to shift to a tighter money policy,which in turn would lead to a rise in interest rates.

.

The Centre has blamed this year’s poor monsoon for high food prices.

.

It also put the onus on state governments to control prices through better management of food supply through ration shops.

.

🙂

.

In Other major Commodities Updates, we bring you the news of Govt opting for transgenic tech to boost pulses production and Natural rubber prices going double in a year.

.

🙂

.

Govt looks to transgenic tech to boost pulses production:

.

The Union government is drawing up a comprehensive programme to introduce transgenic technology to improve the productivity of pulses.

.

Bt refers to a gene sourced from a soil bacterium that is transferred to plants and acts as an insecticide.

.

The Bt gene activates a toxin that kills a class of pests largely responsible for damaging plants and, thus, denting yields.

.

They are genetically low yielding and less responsive to inputs compared with other cereals and oil seeds.

.

Not only are they more prone to pests and diseases, hybrids and genetically modified varieties are not available to enhance productivity.

.

The agriculture department has said it plans to increase pulse production by 2 mt and acreage by 4 million ha by 2012.

.

🙂

.

Natural rubber prices double in a year:

.

The natural rubber (NR) prices have almost doubled in a year.

.

The benchmark grade RSS-4 variety was quoted at Rs 128 a kg on Thursday compared with Rs 65 a kg on same day last year.

.

The rubber market is now poised to break all records despite good production this season.

.

The local market follows its global peers resulting in a sharp increase in the prices in the futures trading.

.

According to Rubber Board estimates, production in November increased to 103,000 tonnes compared with 95,550 tonnes in the same month last year.

.

Production is expected to be at its peak in this month due to the winter season and supply is expected to improve further.

.

The board estimates also revealed that the total stock in the country increased to 247,000 tonnes.

.

This is due to the sharp increase in imports and a drop in exports during April-November.

.

🙂

.

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

Wheat Sowing Picks Up Pace Across India

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

🙂

Wheat sowing picks up pace across India

Wheat sowing picks up pace across India:


As per the latest government estimate, wheat has been sown in around 13.70 million hectares of land till last week, almost 5% more than the same period last year.

.

Sowing in India ‘s two main wheat growing province of Punjab and Haryana,which contribute almost 80% of the total country’s production is nearing end.

.

Officials believe that  barring delayed harvest kharif crops, cooler temperature in most parts of northern, central and western India added with the recent unseasonal rains should provide an ideal climatic condition for good wheat sowing and early growth.

.

The government expects an additional two million tonne of wheat production during the rabi season to offset some of the losses incurred during the kharif harvest.

.

However, as per studies done by Indian Council of Agriculture Research, wheat yield can come down by almost 50 kilograms per hectare per day if it is sown very late (beyond December) in northern states.

.

The output drop in southern wheat growing states and in Maharashtra and Karnataka is estimated to be around 36 kilograms per hectare per day if the crop is sown very late.

.

🙂

.

In Other major Commodities Updates we can read about India’s FM statement on Inflation root cause and launching of in 12 commodities by MCX.


🙂

.

Inflation due to food items shortage: FM


The current trend in inflation in India is a result of a shortage of food items and not due to a demand-push factor, Union finance minister Pranab Mukherjee told Parliament on Tuesday.

.

The food articles index rose an annual 15.6% as at 14 November, up from the previous week’s 14.6% rise.

.

The weakest monsoon since 1972 and then floods in parts of the country have hurt farm output and pushed up food prices.

.

The finance minister said the government is keeping a close watch on futures trading in commodities.

.

The Centre is planning massive investment to boost farm output, the minister said.

🙂

MCX launches EFP in 12 commodities:


The Multi-Commodity Exchange of India (MCX) has introduced the exchange of futures for physicals (EFP) transactions in 12 commodities from Tuesday, the bourse said in a release.

.

This process will help traders who have already entered into an agreement for physical trade to take position on futures platform for transparent pricing mechanism.

.

In EPF, if the quality of the commodity traded does not match MCX specifications, both parties can then decide on a premium or discount to the settlement price on the futures platform on the delivery date.

.

🙂

.

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

Uncertainty over stocks leads to price volatility in turmeric futures

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

🙂


Uncertainty over stocks leads to price volatility in turmeric futures:

In an unusual situation this week, far-term turmeric contracts were trading much below near-term ones, offering a big arbitrage opportunity for hedgers and speculators, on the National Commodity & Derivatives Exchange (NCDEX).

The price difference was 39 per cent.

Last year’s carryover stock is estimated to have declined steeply, at around 150,000 bags (a bag is 70 kg) as of today, as compared to around 700,000 bags around the same time last year.

Arrivals at the Erode market were 2,000 bags and sold at Rs 10,900-11,000 a quintal.

In Duggirala, prices were placed at Rs 9,800-10,500 a quintal and in Warangal at Rs 9,900-10,500 a quintal.

Turmeric exports climbed seven per cent to 4,000 tonnes in October 2009 from the same period last year.

Weak turmeric futures put downward pressure on spot markets, to send the product down by Rs 800 a quintal.

🙂

In Other major Commodities Updates also read Soybeans and Wheat Drop as Dubai Default Risk Dents Confidence of the Investors.

🙂

Soybeans, Corns and Wheat Drop as Dubai Default Risk Dents Confidence:

Soybeans, corn and wheat slumped after Dubai’s bid to reschedule debt sent equities tumbling and eroded investor confidence in commodities.

Soybeans for January delivery dropped as much as 2.7 percent to $10.2625 a bushel, the lowest level since Nov. 19, in electronic trading on the Chicago Board of Trade and were at $10.385 at of 10:50 a.m. Tokyo time.

The contract has lost 0.7 percent this week, the first such drop in three weeks.

Wheat for March delivery in Chicago lost as much as 2.4 percent to $5.5775 a bushel before trading at $5.595.

The grain dropped 3.7 percent this week, falling for the first time in four weeks.

Production may be around 21 million metric tons, down 2 percent from last harvest and lower than the 23 million tons forecast in October,2009.

🙂

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