Commodities Daily Report
Saturday| April 27, 2013www.angelcommodities.com
as on April 26, 2013
Last Prev. day WoW MoM YoY
19287 -0.62 1.42 3.11 12.59
5871 -0.76 1.53 4.07 13.15
54.38 0.51 0.65 -0.18 3.76
Nymex Crude Oil - $/bbl
93 -0.68 5.67 -3.47 -11.05
Comex Gold - $/oz
1454 -0.56 4.18 -8.91 -12.41
Crop protection products set to become dearer
Farmers need to brace themselves for a steep hike of pesticides andother crop protection products in the ensuing kharif season. TheAssociation of Pesticides Manufacturers, representing the industry,expects the hike to be between five and 30 per cent across all products,including fungicides and weedicides. The industry feels that it has to passon to the farmers the increase in prices of certain raw chemicals, mostlyimported from China. "The hike will be most in the weedicides segment,which has shown the maximum growth in the crop protection market.Today weedicides have a share of almost 30 per cent in the entire Rs
10,000 crore crop protection market," V.K. Garg, the association’s vice
Source: Business Line)
Sugar output may exceed demand for three years
Sugar output in India will likely exceed the annual consumption of 22million tones at least untol the marketing year through Sept 2016, foodminister KV Thomas said on Friday. Sugar production has hit 23 milliontones so far in the current year & is forecast to touch 24.6 million tonescompared with 26.3 million tones in 2011-12
. (Source: Financial express)
Brazil 2012/13 corn crop seen at record 78.4 mln T - Safras
Brazilian farmers are expected to harvest a record 78.42 million tonnesof corn in 2012/13, up from 72.70 million tonnes in its last crop, localforecaster Safras e Mercado said in a report on Friday. Safras cornanalyst Paulo Molinari said the latest forecast was well above thecompany's initial outlook of 68.03 million tonnes, released in 2012. "Theperformance could have been even better still if the north and northeasthad not had a severe drought. These regions were initially expected toharvest 5.94 million tonnes, which should now drop to 3.82 million,"Molinari said. The unexpected increase in the forecast has come largelyfrom widespread planting of the winter, or second, corn crop, whichstarts planting in January through March after the summer soy and corncrops are harvested. Brazil's corn production and exports have surged inthe past few years along with the price of the grain, used widely inprocessed foods and livestock feeds.
Cotton futures post 4th straight weekly loss on investor selloff
ICE cotton rose on Friday, after finding technical support and as limitedmill buying buoyed prices, though the gains were not enough to preventfiber from registering a fourth straight weekly loss. The most-active Julycotton contract on ICE Futures U.S. CTN3 gained 1.02 cent, or 1.2percent, to settle at 84.25 cents per pound. A fall to technical support inthe range of 82 cents to 82.50 cents earlier this week prompted buying,dealers said. The day's gains came even as the rest of the ThomsonReuters-Jefferies CRB .TRJCRB index, a global commodities benchmark,closed lower. "We're short-term oversold, and the cotton exports werepretty good," said Nick Gentile, senior partner of commodity tradingconsultancy Atlantic Capital Advisors. U.S. weekly export data, whichshowed an increase from the previous week, was seen as solid bytraders. Prices also felt support from limited mill buying that came in onprice dips, dealers said."They're buying on just a scale-down basis," saidGentile.
News in brief
Met predicts normal monsoon
The South-West monsoon is most likely to be normal, the IndiaMeteorological Department said in its initial forecast on Friday. It has,however, not given any region-wise prognosis, which many have soughtin the light of other recent forecasts suggesting deficient rains inparticular in the southern States. Quantitatively, the average rainfall isexpected to be 98 per cent of the normal long period average (LPA) of 89cm during the four-month season starting June 1. LPA is the average of seasonal rainfall over the country as a whole from 1951 to 2000. Lastyear, the monsoon was below normal at 92 per cent of LPA (81.9 cm),though the forecast was 99 per cent. The first official forecast by IMDdoes not talk of the onset of monsoon; nor does it estimate the spatialand temporal rain distribution for the season
. (Source: Business Line)
Cotton Corpn begins unloading its inventory
The Cotton Corporation of India began selling its stocks built throughmarket intervention operations as part of the Government efforts to hold
the natural fibre’s price line.
According to traders, with CCI, someexporters were also selling their stocks but ginners were holding theirlong position due to lower arrivals. CCI has started selling its stocks fromFriday through e-auction. It offered to sell 25,000 bales. Out of which,18,000 bales were from Andhra Pradesh, 2,500 bales from Maharashtra,4,000 bales from Karnataka and 500 from Orissa. CCI may sell morecotton in coming days through e-auction. According to trade sources, CCImay dispose of around 2,50,000 bales in first round. However, the salefailed to have any impact as prices remained unchanged on the back of normal demand and limited arrival. Gujarat Sankar-6 cotton was tradedon Rs 37,500-37,700 for a candy of 356 kg, V 797 cotton A grade wasoffered at Rs 28,300-28,600.
Source: Business Line)
Global Maize crop to rise 10%
The International grains council (IGC) said that global maize production isexpected to rise by 10% in 2013-14 to a record 939 Million tonesrestoring stocks to above average levels. Global wheat production isforecast to rise more modestly by around 4% to 680 mt, the IGC said in amonthly report. The IGC said global maize stocks were expected to riseby 27 mt to 143 mt by the end of the 2013-14 season
.( Source: Business Line)
Drought saps sugar production in TN
Drought conditions across Tamil Nadu have hit sugarcane output andsugar recovery in the current season ending September. Sugarregistrations for the coming season indicate a further drop in output nextyear. Electricity shortage and ground water depletion due to droughthave contributed to the lack of enthusiasm for the nearly year-long crop.Tamil Nadu, for the first time, could go without the second season
sugarcane crushing or maybe a ‘truncated’
season. Sugarcane crushingrecommences in mid-July after the peak summer and goes on up toSeptember during the special season, said experts.
(Source Business Line)
For now, Govt will not hike import duty on rubber
The Centre has decided against increasing customs duty on naturalrubber imports for now. This stance should come as a relief for thedomestic tyre manufacturers who had been urging Finance Minister P.Chidambaram to retain the current import duty structure on naturalrubber imports. Currently, import duty on natural rubber is pegged at 20per cent or Rs 20 a kg, whichever is lower. Since the second half of December 2012 and early January this year, the pitch was getting louderfor review of import duty on natural rubber. Pressure was also mountedon the Finance Ministry to hike the specific duty component of importduty on natural rubber. The Government was faced with the opposingdemands made by the growers and domestic tyre manufacturers.