Prices of select grains rise on increased offtake.

Ram Gopal Yadav (6 years ago)

Prices of select bold grains advanced by up to Rs 30 per quintal at the wholesale grains market due to increased offtake by consuming industries. Increased offtake by consuming industries amid pause in arrivals from producing regions, mainly attributed the rise in select bold grain prices. In the national capital, barley rose by Rs 10 to rs 1590-1600 per quital.

Punjab fails to cut down area under rice cultivation.

Ram Gopal Yadav (6 years ago)

Despite setting a target to bring down by over one lakh hectares (lh) area under rice cultivation this year, Punjab has failed and acreage under the crop has already reached up to 29.57 lh and is likely touch 30 lh again. Last year, 30.07 lh area was cultivated under rice and this year department had proposed to bring it between 28-29 lh by diverting its area to cotton and monsoon maize crops. But lack of canal water during cotton sowing, increased MSP of assured paddy and poor rate of recently harvested ‘spring maize’ are the contributing factors to increase in area under rice. Till July 23, 2018, the area under rice (the cultivation of which was started on June 20), had reached to 29.57 lh out of which over 23 lh was dedicated under paddy rice (parmal rice) and remaining under basmati rice.

The IGC kept its forecast for world corn (maize) production

Ram Gopal Yadav (6 years ago)

The IGC kept its forecast for world corn (maize) production in 2018/19 at 1.052 billion tonnes, slightly above the prior seasons 1.044 billion, but a second successive global deficit was expected with consumption seen at 1.098 billion. A projected increase in maize largely hinges on a recovery in output in South America where planting for 2018/19 is still some months away.

IGC cuts forecast for world wheat crop to five-year low.

Ram Gopal Yadav (6 years ago)

World wheat production is set to fall to a five-year low following significant downgrades to crop prospects in the European Union and Russia. The inter-governmental body cut its forecast for world wheat production in 2018/19 by 16 million tonnes to 721 million, the lowest total since the 2013/14 season. The EU wheat crop was seen at 139.9 million tonnes, down from a previous projection of 147.3 million, with forecasts for the top four producers in the trading bloc, France, Germany, Britain and Poland, all revised down. Russias wheat crop was forecast to fall to 66 million tonnes, down from a previous projection of 70.9 million and far below the prior seasons 84.9 million. Global wheat stocks were forecast to fall to a two-year low of 247 million tonnes with production set to fail to keep pace with consumption in 2018/19 which was seen at 739 million.

Centre-South Brazil Jul 1-15 sugar output 2.39 mln tn, down 23% YoY.

Ram Gopal Yadav (6 years ago)

Mills in Brazils centre-south region produced 2.39 mln tn sugar during the first fortnight of July, down 23.3% from 3.11 mln tn in the year-ago period. Mills in the region, which accounts for more than 90% of the countrys total sugar output, crushed 44.88 mln tn of sugarcane during Jul 1-15, down 6.5% on year. During Apr 1-Jul 15, mills in the region crushed 267.42 mln tn of cane, up 8.1% on year. During the same period, they produced 12.14 mln tn sugar, down 14.5% on year. Sugar production in the region during the period was lower despite the rise in crushing because mills diverted more cane towards ethanol, whose prices are more attractive than sugars.

ICRA does not see sustained recovery in sugar prices due to glut.

Ram Gopal Yadav (6 years ago)

Ratings agency ICRA expects sugar prices to fall again on the likelihood of another bumper year of production in 2018-19 (Oct-Sep). Prices of the sweetener have recovered to around 3,350 rupees per 100 kg from a low of 2,650 rupees due to various government measures. Indian Sugar Mills Association has forecast sugar output during the next season at an all-time high of 35.0-35.5 mln tn, beating the record production of the ongoing season at 32.3 mln tn. In June, the government had asked mills to create a 3-mln-tn buffer stock of the sweetener. It had also fixed a floor price for sale of white sugar by mills at 29 rupees per kg for the ongoing season to help them clear cane arrears, which had topped 230 bln rupees in May. After the government measures and recovery in sugar prices, the arrears declined to around 178 bln rupees as on Jul 18. Further, the hike in FRP (fair and remunerative price) is likely to result in margin pressures and provide further impetus to farmers to sow sugarcane, which is likely to exacerbate the oversupply conditions. Earlier this month, the Cabinet Committee on Economic Affairs approved fixing the fair and remunerative price of sugarcane for 2018-19 (Oct-Sep) at 275 rupees per 100 kg. For 2018-19, the government has linked the cane price of 275 rupees per 100 kg to a basic recovery rate of 10% instead of the usual 9.5%, taking into account the increase in average sugar recovery from cane in the past few years. In the 2018-19 season, the government would provide a premium of 2.75 rupees per 100 kg for each 0.1 percentage point rise in recovery rate. At a recovery rate of 10%, this seasons fair price works out to be around 268.4 rupees per 100 kg, which means the effective increase in cane price for 2018-19 is nearly 2.5%.