Posts Tagged ‘rapeseed’

MUSTARD/RAPESEED SEED

Mustard/Rapeseed oil is the third largest edible oil produced in the world after soy oil and palm oil with accounts of about 12% of the total World’s edible oil production. By crushing rapeseed or mustard seed, oil and meal are obtained. The average oil recovery from the seed is about 33%. The remaining is obtained as cake, which is rich in proteins and is used as an animal feed ingredient. Being an important source of edible oil and feed meal to the country, mustard is undoubtedly the focus of Indian edible oil industry. In EU, rapeseed oil is mainly used for biofuel production.

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Global scenario

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The production and consumption of this oil has been growing at the rate of 4.65% and 5.03% respectively over the last decade. According to USDA, global rapeseed output for 2010/11 is forecast 400,000 tonnes higher this month to 57.1 million as a larger crop in Canada. While world production of mustard oil is estimated to 20-22 million tonnes. Canada is the major producer and exporter of seed and oil followed by Australia. China, European Union, Canada and India are leading producers of mustard seed and consumer as well as. The major seed importing countries are Japan and Mexico and US leads the list of mustard and rapeseed oil importing countries. Global rapeseed exports are estimated 410,000 tonnes higher this month due to lower exports from Ukraine and Russia as record heat wave in August causes crop damage.

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Indian scenario

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The Central Organisation for OilIndustry and Trade, the apex trade body, estimated the country’s mustard seed output at 64.2 lakh tonnes in 2009-10 (October-September) as against 63.5 lakh tonnes a year earlier,
while oil is around 21 lakh tonnes in 2009-10. The country also generates 24 lakh tonnes of oil cake.

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Rajasthan, Uttar Pradesh and Haryana produce the major share of rape /mustard contributing to over 70% of the total Indian produce. The crop accounts for nearly one-third of the oil produced in India, making it the country’s second most important edible oil after groundnut. Mustard oil is consumed wholly in the domestic market. The demand for the consumption of mustard/rape seed comes mainly from eastern and northern areas of the country.


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Hence, India does not export mustard seed but imports some amount of oil. However India exports around 400,000 tonnes of oil cake. Recently due to the dominance of comparatively other cheaper oils like palm and soya, the import share has come down.

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Climatic conditions, especially progress of South-West monsoon is a major factor shaping the fortunes of  mustard seed. Price of other domestic and global oil seeds would also have significant bearing on mustard seed prices. Major trading centres  in mustard seed in the country are Jaipur, Sriganganagar and Alwar in Rajasthan, Hapur in UP, Delhi, Mumbai and Kolkatta.

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Outlook

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The mustard seed futures are likely to trade under selling pressure. Higher warehouse stock, poor buying interest, weakness in soy market, projection of record Kharif oilseeds production due to higher acreage and favorable weather condition is likely keep prices down. As on 13th September, NCDEX warehouses are
having a stock of 123,236 tonnes. Rise in volume, fall in open interest and price is indicating further weakness in the prices.

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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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IMCX-India’s Fourth National Commodity Bourse, To Be Launched Soon:)

IMCX-to-be-launched

International Multi Commodity Exchange (IMCX)

Commodity trading in India has a long history & was started much before it started in many other countries.

Today, apart from numerous regional exchanges, India has three national commodity exchanges namely, Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX) and National Multi-Commodity Exchange (NMCE).

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THE RISING WAVES

These commodity exchanges have been performing extremely well in these years.

The turnover of commodity exchanges in India surged by 31% in the April-August period, led by a surge in trading of farm goods.

Total value of trading at the Commodity Exchanges during the fortnight from 16th August 2009 to 31st August 2009 was Rs. 3,04,651.88 crore.

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NEED OF THE HOUR

In India, futures’ trading in commodities is zooming.

India’s commodity exchanges have witnessed major action this year and are getting into investing and managing new commodity bourses.

Another commodity exchange may help using the opportunities better ; thereby improving trading volumes of specific contracts & be more efficient is the price discovery, which in turn will attract a wider constituency of participants from the entire commodity value chain i.e. government, producers, marketers, importers, exporters etc.

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THE FIRST STEP

A new commodity exchange, International Multi Commodity Exchange is going to launch very soon under the market regulator Forward Markets Commission (FMC).

IMCX is promoted by Indiabulls Financial Services Ltd (IBFSL) and India’s biggest state-run trading firm, MMTC Ltd, and part-owned by more institutions.

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The exchange is planning to start operations next month as the country’s fourth national commodity bourse & is ready to grab its share of a futures market that is growing 30% a year.

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BUILDING TECH – PLATFORM

The US-based exchange services provider Millennium Information Technology (MIT) has been awarded the contract for implementing the technology platform for the aforesaid exchange.

The US-headquartered MIT provides application solutions to financial and telecom industries.

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THE PILLARS OF FOUNDATION

IMCX will be the first commodity bourse in India to comply with the criteria of revised ownership criteria that makes the participation compulsory of public sector units or cooperatives.

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Currently, Indiabulls Financial Services Ltd. (IBFSL) holds 40% of the exchange, state-run MMTC Ltd. holds 26%.

Forward Markets Commission rejected the United Stock Exchange of India’s (USE’s) 10% stake buy in the bourse, on the grounds that the stock exchange is yet to be fully recognized.

So far, Indiabulls has diluted 24 per cent to HDFC Bank, Yes Bank and Indian Potash Ltd & IDFC + Krishak Bharati Cooperative Limited (KRIBHCO) have purchased a stake of 5% each in Indian Commodity Exchange, which was to be sold to the USE earlier.

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BUSINESS OPERATIONS

The exchange will start operations by launching 10-12 contracts in bullion, metals, energy and agricultural commodities with some uniqueness in contracts to attract more volume.

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·The exchange will launch gold mini and gold 1 kilogram contracts in the bullion segment. The gold contracts will have multiple delivery centers in five-six cities.

· In base metals, it is planning to offer copper, zinc and lead or nickel futures, and in the energy segment it will launch crude oil and natural gas contracts. Delivery-based contracts will be launched in the base metal segment, where contracts are mostly non-deliverable at other exchanges.

·The exchange has also tied up with several logistic providers for warehouse facilities, & in the next phase of expansion, the exchange may create its own warehouses

·Guar seed, rapeseed, refined soyoil, soybean and turmeric will be among the agricultural contracts.

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