Posts Tagged ‘wheat prices’

WHEAT MAY MOVE IN RANGE WITH UP BIAS

Domestic wheat prices have escalated by around 10 per cent

Domestic wheat prices have escalated by around 10 per cent

Domestic wheat prices have escalated by around 10 per cent amid concerns of adverse monsoon and flood in Karnataka and Andhra Pradesh, which has raised concern over kharif food grain production particularly rice and maize.

Although there is still some upside left as far as wheat prices are concerned.

The prices will face strong resistance at higher level as supply situation in India and in rest of the world is in healthy shape.

Ample availability of stock at domestic level

At domestic level, wheat inventories have increased after two back to back record crops in the country.

Due to better carry over stock and record purchase government stocks reached to second highest level in the history at 32.29 million tonnes almost double than buffer stock requirement of 17 million tonne.

🙂

According to the Agriculture ministry’s fourth advance estimates, India produced a record crop of 80.58 million tonnes in 2008-09, while production was at 78.57 million tonnes in 2007- 08.

With bumper production and steep hike in minimum support price, government made record purchase of 25.3 million tonnes this year, 13 percent more as compared to last year.

🙂

Prospects of next year crop

Despite having comfortable supply currently, weak monsoon, flood in Andhra Pradesh and Karnataka and consequent Shortfall in kharif paddy output prospects has started fueling prices in the market.

A smaller paddy and maize crop will lift demand for their substitutes, primarily wheat.

As per crop weather watch report, acreage of kharif paddy this year remained at 324.28 million hectare till October 09, 2009 which is 16.2 percent or 6.26 million hectare lower than same period last year.

However kharif maize acreage remained higher this year but recent flood in Andhra Pradesh and Karnataka has aggravated the concerns of lower output.

As per Agriculture department report, kharif maize acreage was at 71.08 lakh hectares, 0.8 percent or 0.5 lakh hectares higher than last year.

Besides, flood in Karnataka and Andhra Pradesh and weak monsoon also raised concern over prospect of next wheat Crop.

Due to weak monsoon in northern part of India mainly in Punjab, Haryana and Uttar Pradesh, soil moisture condition is not sufficiently good for next wheat sowing.

😦

Water storage in this region has also declined. As per Central Water Commission’s latest data in 81 important water reservoirs monitored by CWC in different parts of the country, total live storage has increased from 90.48 BCM on 01.102009 to 91.75 BCM on 08.10.2009.

But still is far from a satisfactory level.

Stay Tuned for More on this topic.

We would see demand and supply scenario in coming months, price trend and on Export Ban.

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Next window for N-E monsoon from Oct 27 to Nov 4


Lets Get to know of the latest Agri updates in the country 🙂

Next window for N-E monsoon from Oct 27 to Nov 4

Next window for N-E monsoon from Oct 27 to Nov 4

Next window for N-E monsoon from Oct 27 to Nov 4:

The next window for the North-East monsoon over the Bay of Bengal and adjoining peninsula is likely to open up during October 27 to November 4 in what is an unusually delayed onset this season.

The US National Centres for Environmental Prediction sees the south-central and adjoining south Bay of Bengal and peninsular India being brought under wet cover during this period.

This too is expected to happen around October 27, another reason why the nearly contiguous Bay of Bengal should be able to breathe free to get the northeast monsoon going.

Meanwhile, India Met Department satellite pictures showed cloud build up along the equator and a northwest-to-southeast banding of clouds over northeast Bay of Bengal.

These patterns were being attributed to the `pull’ effect of Super Typhoon Lupit.

🙂

In Other major Agri Updates we can see that Wheat futures has hit the upper limit and has risen 4 per cent on short covering:

Wheat futures climbed 4 per cent to hit the upper limit on the Multi Commodity Exchange today on the back of covering-up of short positions by traders amid good demand in the spot market.

At the MCX, wheat for delivery in December contract shot up 4 per cent to hit the upper limit at Rs 1,320.80 per quintal in a turnover of 11 lots.

Besides covering-up of short positions, firming trend in wheat at spot markets following demand against tight supply mainly pushed up wheat prices at futures market.

🙂

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Wheat futures hit upper limit, rises 4 per cent on short-covering: