Telangana tender update shall be received in a couple of days regarding the tender awardment to the respective bidders. The market is expecting good arrivals with this tender awardment in the market and trade accordingly. Arrivals in MP/Maharashtra are yet to pick pace, Karnataka is having arrivals of high moisture cargo which is getting directly consumed by the processors. Current price levels indicate lower farmer selling and will be interesting to see how markets react to arrivals post festivals.
Product prices and margins continue to be “decent “ for the poultry Integrators and wet corn millers. The challenge for poultry is foreseen in coverage of soya meal due to higher soya seed prices.
Destination market prices are as below, prices quoted to be same as yesterday but markets look like trading higher
Tamil Nadu :- Trucks 1450-1500,
Bangalore :- Trucks 1430-1450
Hyderabad :- trucks 1430-1450
Ahmedabad :- 1340-1370/1390 (super quality cargo buying)
Bihar :- 1420-1450 (Good Quality)High FD 1080-1100.
North :- 1450-1480
Sangli : -1370-1380/ Grit quality 1410-1425.
Exchange :-
60 Mt delivery has been tendered in gulabbagh. No trades nothing else to report from exchange.
International Market :-
All eyes in world market are on China, how much have they reduced their stocks, do they have actual stocks or it’s a book adjustment. How much China Crop imports will the USDA take in the next report, all news pertaining to china only, old news like weather issues in south America, lack of near term loading capacity in US, Ukraine crop size downgrade all are pointing towards the continuation of firm sentiments and prices in the International Markets. Cbot dec contract is trading at 406 cents/bushel as of this report writing. For India carry over of tender stocks are a soothing factor but for how long we will have to see, If indian demand is back to where it was in Dec -19/Jan-20, we might be looking at very interesting market for the next two months of 2020 and another four months of year 2021.
Sensex and Nifty
Sensex and Nifty continued their positive trend though today was less adventurous and closed 112/23 points higher respectively @ 40544/11896 respectively. Rupee closed at 73. 52 versus previous close of 73.35.
Weather :-
Telangana locations like Hyderabad have been set an alert after heavy rains of 13/14 October, barring parts of Karnataka there are no rains in the maize growing regions. The harvesting is set to gather pace in the time frame.