Raw jute prices witnesses fall

Raw jute prices in the domestic market, witnessed fall of 40 per cent to reach around Rs 18,000 a tonne this month.

The steep fall in raw jute prices has been seen amid concerns of a possible 25 per cent dilution in Jute Packaging Materials Act (JPMA) of 1987. JPMA provided 100 per cent reservation for jute bags in packaging of food grains and sugar procured by the government.

The Centre''s Standing Advisory Committee chaired by the Union textiles secretary recommended the 25 per cent dilution in JPMA. The matter was expected to be taken up for discussion by the Cabinet Committee on Economic Affairs (CCEA). The sharp fall in raw jute prices has also been attributed to the sugar industry''s move to refrain from procuring jute bags, on the feedback that the Union textiles ministry is bent on 25 per cent dilution.

Spot rubber turns weak

On Monday, the spot rubber rates turned weak. A bearish mood in the domestic and international rubber futures weighed on the sentiments during the day. Sheet rubber dropped to Rs 102 (102.50) a kg on buyer resistance The trend was mixed as ISNR 20 and Latex 60 per cent finished flat with dull volumes

The September futures for RSS 4 ended at Rs 102.21 (104), October at Rs 101.10 (102.16), November at Rs 99.80 (101.09) and December at Rs 100.89 a kg on National Multi Commodity Exchange (NMCE). RSS 3 declined sharply at its August futures to Yen 195.2 (Yen 204.5) (Rs 101.10), September to Yen 189.2 (Yen 200.6), October to Yen 188.3 (Yen 201.2), November to Yen 190.9 (Yen 203.2), December to Yen 193.2 (Yen 205.5) and January to Yen 195.6 (Yen 208.1) a kg during the day session on TOCOM. The September futures for the grade finished at Yen 187.1, October at Yen 187, November at Yen 189.2, December at Yen 191.4 and January at Yen 193.5 a kg while the August futures remained inactive during the night session. RSS 3 slipped to Rs 99.42 (101.12) a kg on Singapore Commodity Exchange (SICOM). The grade (spot) improved to Rs 100.49 (100.08) a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 102 (102.50); RSS-5: 100 (100.50); ungraded: 98 (99); ISNR 20: 94.50 (94.50) and latex 60 per cent: 79 (79).

Cardamom prices went up

Cardamom prices went up at the auctions held in Kerala and Tamil Nadu on the squeeze in supply due to poor early crop and a strong demand in view of the ensuing festival season.

The average price increased to Rs 717 a kg at the Sunday auction held by KCPMC, Kumily, from Rs 697 at the Tuesday morning auction.

However, at the first auction of the CPA, which began on Monday at Bodinayakkanur, the average fell to Rs 698.67 a kg because of the inferior quality material. The arrivals were 17 tonnes of which 15 tonnes were sold out.

The buyers were aggressive due to the ensuing festival season and squeeze in availability. Exporters were also active in view of the Ramzan season beginning on September 22.

Pepper futures end higher

On Monday, the pepper futures market witnessed high volatility and went up at the end on reports that enquiries started floating from overseas buyers following tight supply position in other origins and rise in prices.

The tight supply position is emerging in all the origins as buyers in the major consuming markets, who did not cover earlier, have returned to the market from their summer vacation.

There were no sellers for spot. August contract on the NCDEX increased by Rs 271 to close at Rs 14,725 a quintal. September and October contract increased by Rs 290 and Rs 270 respectively to close at Rs 15,088 and Rs 15,283 a quintal. Total turnover dropped by 480 tonnes to close at 9,143 tonnes. Total open interest moved up by 82 tonnes to 9,601 tonnes. August open interest fell by 172 tonnes.

Sufficient food grain stock to limit price rise

Sufficient food grain stocks may put a stop to rise in price due topoor monsoon, said a commodities broking firm. “Poor rainfall this year can have an obvious impact on food prices, thereby impacting inflation. However, India has some respite in the form of comfortable levels of food grain stocks,” broking firm Angel Commodities said in a report. In 2002-03, the release of these stocks had aided to contain rise in inflation, mainly in food grains.

The government has confirmed that it has sufficient food grain stocks to meet demand under the public distribution system (PDS) and other welfare schemes during 2009-10, the report said. As on June 1, food grain stocks stood over 535 lakh tonne against the government’s annual requirement of 496 lakh tonne.

Cardamom prices witness rise

Cardamom prices witnessed rise due to delay in the start of the new cardamom season that has squeezed fresh arrivals into the market. The cardamom prices are hovering around Rs 700 per kg level.

Generally, the season picks up in the month of August with new cardamom arrivals from the harvest flooding the market. However, this year the season has been delayed by a month because of inadequate rains. Consequently, the arrivals are expected to improve only by September.

The average spot prices at Vandanmedu auctions on Wednesday stood at Rs 710 per kg with arrivals keeping as low as 19 tonnes as compared with 30 tonnes in a year-ago period.

Pepper futures remain volatile

The pepper futures market witnessed high volatility last week with the prices shooting up in beginning and then falling sharply to move up at the weekend close.

On NCDEX, August, September and October contracts dropped by Rs 430, Rs 330 and Rs 347 respectively to close at Rs 14,460, Rs 14,806 and Rs 15,026 a quintal on Friday. Total turnover during the week increased by 2,735 tonnes to close at 59,409 tonnes. Total open interest went up by 352 tonnes to 9,519 tonnes.

August open interest dropped by 981 tonnes to 764 tonnes while September and October increased by 909 tonnes and 416 tonnes respectively, indicating switching over from August. Spot prices, however, remained at the previous weekend closing levels of Rs 14,000 (un-garbled) and Rs 14,500 (MG 1) a quintal.

FMC May allow MCX to launch freight futures

MCX will get permission to start a freight rate futures contract if the country’s legal framework permits trade in the intangible commodity, Forward Markets Commission (FMC) Chairman B C Khatua said.
MCX has required the commodity market regulator’s approval to launch freight rate futures, said Khatua.

In 2004, MCX had tied-up with London’s Baltic Exchange to offer freight rate contracts in India.

However, Khatua said FMC was unlikely to permit MCX to launch a deliverable commodity basket contract, which will include a composite of commodities to be traded as a group.

Spot rubber prices improve

On Thursday, spot rubber went up. Sharp gains in the domestic and international rubber futures catalyzed the market mood and sheet rubber improved to Rs 102.50 from Rs 101.50 a kg on fresh buying and short covering. "

RSS 4 imporved at its August futures to Rs 104 (102.27), September to Rs 103.39 (99.93), October to Rs 101.35 (97.99) and November to Rs 100.44 (97.17) a kg on National Multi Commodity Exchange (NMCE). The August futures for RSS 3 firmed up to Yen 203.6 (Yen 199) (Rs 101.76), September to Yen 200 (Yen 194.1), October to Yen 202.1 (Yen 193.8), November to Yen 204.3 (Yen 196.5), December to Yen 206.4 (Yen 198.3) and January to Yen 209 (Yen 201) a kg during the day session on TOCOM. The grade (spot) was flat at Rs.99.40 a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 102.50 (101.50); RSS-5: 100.50 (100); ungraded: 99 (98); ISNR 20: 94.50 (94.50) and latex 60 per cent: 79 (79).

Pulses output may fall 50 % in K''taka

It is feared that pulses output may fall drastically in 2009-10 in Karnataka with the major pulses-growing districts reeling under severe moisture stress conditions.

The present sowing season for the kharif crop is almost over and a significant area under pulses is witnessing a failure due to a lack of rains in the districts of Gulbarga, Raichur, Bidar and Koppal. Though sowing has taken place in three-fourths of the target area, the apprehension is that late sowing could result in low yield. Moreover, crops are drying up due to dry spell, and it looks like the state is headed for about 50 per cent drop in the pulses output this year.

Upsurge continues in pepper futures

On Monday, the upsurge in the pepper futures market continued with rise in all the contracts and the spot prices on bullish operations. Investors were buying exchange delivered pepper and selling futures.

“There were more and more buying interest seen,” market sources said. Enquiries were floating from the domestic market, which is holding back ever since the prices are on the rising trend. But, now they may not be able to hold back given the ensuing festival season, but to enter the market soon, they said.

August contract increased by Rs 330 on NCDEX to close at Rs 15,200 a quintal. September and October went up by Rs 364 and Rs 327 respectively to close at Rs 15,500 and Rs 15,700 a quintal.

Total turnover also increased by 5,448 tonnes to close at 14,108 tonnes. Total open interest went up by 420 tonnes to 9,587 tonnes. Open interest for August dropped by 206 tonnes while that of September shot up by 505 tonnes and October moved up by 99 tonnes.

Turmeric extends gains on firm trend, lower stocks

On Monday, turmeric continued its week-long winning streak and added another 2.76 per cent on the National Commodity and Derivatives Exchange (NCDEX) on the back of firming trend in spot markets on good demand on account of festive season amid lower stocks. However, profit-booking following imposition of an additional special margin of 10 per cent by the NCDEX, capped gains in turmeric prices.

Turmeric for August contract notched up another 2.76 per cent at Rs 7,749 per quintal at the NCDEX counter. The contract has an open interest of 21,600 lots and delivery in September-month contract added 2.40 per cent at Rs 7,500 per quintal, in an open interest of 18,150 lots. Analysts attributed the persistent rise in turmeric prices in futures trade to firming trend in the spice prices at spot markets following strong festive demand and lower stocks this year.

Spot rubber witnesses gain

On Monday, spot rubber witnessed gain. According to observers, the market improved following the firm closing in domestic rubber futures on NMCE. Sheet rubber ended better at Rs 101 from Rs 100 a kg on covering purchases. There were no fresh enquiries from major consuming industries. Latex 60 per cent remained unchanged on extremely low demand.

RSS 4 firmed up at its August futures to Rs 102.75 (102.19), September to Rs 99.96 (99.35), October to Rs 97.90 (97.18) and November to Rs 97.35 (96.91) a kg on National Multi Commodity Exchange (NMCE). RSS 3 improved at its August futures to Yen 190.9 (Yen 187.3) (Rs 93.88), September to Yen 187.5 (Yen 183.5), October to Yen 188.9 (Yen 184.8), November to Yen 191.6 (Yen 187.1), December to Yen 193.7 (Yen 189.3) and January to Yen 196.4 (Yen 191.9) a kg during the day session on TOCOM.

The September futures for the grade ended at Yen 191.2, October at Yen 192, December at Yen 196.2 and January at Yen 198.8 a kg while the August and November futures remained inactive during the night session. RSS 3 (spot) moved up to Rs 96 from Rs 95.35 a kg at Bangkok.

Spot rates were (Rs/kg): RSS-4: 101 (100), RSS-5: 99 (98), ungraded: 97 (96), ISNR 20: 93.50 (92.50) and latex 60 per cent: 77 (77).

Tea production higher in June

According to tea statistics released by the Indian Tea Association here on Monday, the country produced 118.05 million kgs (mkg) tea in June this year compared with 105.44 mkg in the same month last year, thus recording an increase of 12.61 mkg.

However, cumulatively, between January and June, total all-India production at 333.90 mkg showed a decline of 11.78 mkg compared with 345.68 mkg in the same period last year. The shortfall this year thus was recorded despite 12.61 mkg of increase in production in June alone.

According to ITA study, the total Assam production was 63.68 mkg (55.67 mkg), comprising Assam Valley 59.11 mkg (51.45 mkg) and Cachar 4.57 mkg (4.22 mkg), total West Bengal production was 27.30 mkg (26.60 mkg), comprising Dooars 16.67 mkg (16.06 mkg), Terai 9.5 mkg (9.19 mkg) and Darjeeling 1.13 mkg (1.35 mkg) and others 8.95 lakh kgs (8.09 lakh kg). Total North Indian production thus was 91.87 mkg (83.08 mkg).

In the southern region, the total production during the month was 26.17 mkg (22.36 mkg), comprising Tamil Nadu 18.21 mkg (15.27 mkg), Kerala 7.38 mkg (6.64 mkg) and Karnataka 5.86 lakh kg (4.45 lakh kg).

Pulses consumption falls on rise in prices

Pulses consumption reported fall in the first half of this year due to high prices, a report brought out by the Associated Chambers of Commerce and Industry of India (Assocham) has said. The per capita consumption of pulses dropped to 11 kg in the first half. In contrast, the per capita consumption in the 1960s was 27 kg.

Meanwhile, less attention paid to increase pulses production especially under the National Food Security Mission, which focused more on wheat, rice, millet and corn, also contributed to the situation. Efforts were made to increase the yield of these crops at the cost of pulses, the report said.

Consequently, the yield for a hectare declined and in turn, production has been hit. The situation has resulted in prices doubling during the last one year.

Pepper prices went up

The black pepper prices witnessed rise during the week indicating that the assumptions that Indonesia has a lower crop and harvesting in Brazil is not only late but also less than that of last year, are being translated into a reality. In addition, the stock held in Vietnam is also expected to be not much.

Meanwhile, favorable monsoon rains in Kerala is likely to make the way for a comparatively good crop in the next season. At the same time, there were reports that the next pepper crop in Karnataka is likely to be less due to unfavourable monsoon rains.

On Saturday, futures market on NCDEX hit the upper circuit as August surged by Rs 414 to close at Rs 14,920 a quintal. September and October increased by Rs 435 and Rs 448 respectively to close at Rs 15,185 and Rs 15,373 a quintal. Spot prices shot up by Rs 300 to close at Rs 14,000 (un-garbled) and Rs 14,500 (MG 1) a quintal.

All the contracts went up by Rs 1,595 to Rs 1,972 a quintal at close. Spot prices also increased by Rs 1,200 a quintal.

Total turnover raised by 27,900 tonnes to close at 56,674 tonnes. Total open interest increased by 1,762 tonnes to 9,167 tonnes. August open interest dropped 1,785 tonnes while that of September shot by 3,098 tonnes.

NCDEX arm to launch online trading in maize

The electronic spot exchange arm of National Commodity and Derivatives Exchange Ltd (NCDEX), NCDEX Spot Exchange Ltd (NSPOT) has planned to open spot trading platform for maize.

Mr R. Ramaseshan, Managing Director of NCDEX, told reporters on Saturday that the trading centres would be located in Bihar, Andhra Pradesh and Karnataka. “We hope to start spot trading platform for maize by October to catch the rabi crop season,” he added.

Mixed trend in rubber

On Saturday, physical rubber prices witnessed mixed trend. Sheet rubber dropped to Rs 100 from Rs 100.50 a kg on buyer resistance. Most of the traders preferred to remain on the sidelines in the absence of global guidance as the trend setting international exchanges were on weekend holidays.

RSS 4 improved at its August futures to Rs 102.19 (101.77), September to Rs 99.35 (99.07), October to Rs 97.18 (96.72) and November to Rs 96.91 (96.58) a kg on National Multi Commodity Exchange (NMCE).

Spot rates were (Rs/kg): RSS-4: 100.00 (100.50); RSS-5: 98 (98); ungraded: 96 (96.50); ISNR 20: 92.50 (92.50) and latex 60 per cent: 77 (78).

Commodities News Headline: Chilli exports may drop on low demand from Pak

Exporters said on Thursday that reduction in demand from Pakistan along with hard competition from China may hit India’s chilli exports in 2009-10 (April-March).

Weak global economy will also weigh on chilli exports, which accounted for 40 per cent of the total 470,520 tonnes of spices India exported in 2008-09, they said. According to Spices Board, chilli exports dropped 44 per cent from a year ago to 37,500 tonnes in April-June.

Export income reduced 31 per cent year on year to Rs 228 crore, the data showed. “China is selling to Pakistan, which is hitting Indian exports. But, it is difficult to get any accurate data from China,” said Alkesh Patel, managing director of Mumbai-based Amrutva Exports.

Commodities News Headline: Soyameal export declines 80 per cent in July on poor demand

India''s soyameal export fell 80 per cent in July. The drop is backed by gradual decline in demand abroad, an industry body said on August 6. The export of soyameal during July was 58,040 tonnes, compared with 2,84,990 tonnes in the corresponding month last year, Indore-based Soybean Processors Association (SOPA) said in a statement. The overseas shipment of soyameal, used mainly as animal feed, has dropped by 76 per cent so far this fiscal to 3,31,923 tonnes, SOPA said.