Commodities Daily Report
Wednesday| July 24, 2013www.angelcommodities.com
as on July 23, 2013
Last Prev. day WoW MoM YoY
20302 0.71 2.27 8.14 20.29
6078 0.76 2.06 7.24 18.75
59.76 0.06 0.78 0.82 6.85
Nymex Crude Oil - $/bbl
107.23 0.30 1.16 14.45 21.66
Comex Gold - $/oz
1335.1 -0.10 3.43 3.37 -15.34
Sugar Glut Easing as Bear Market Spurs Supply Cuts
Sugar production is poised to contract for the first time in five years justas consumption expands to a record, diminishing a global glut that haskept prices in a bear market since September. Production will drop 1.8percent to 178.5 million metric tons in the marketing year starting Oct. 1as demand rises 1.9 percent to 175 million tons, the London-basedInternational Sugar Organization estimates. Futures will rally as much as13 percent to 18.5 cents a pound by March, the end of the season inBrazil, the biggest producer. Sugar plunged 54 percent since reaching athree-decade high in 2011 as growers from Brazil to Australia and Mexico
raised output. The anticipated drop in production contrasts with analysts’
estimates for record supply of soybeans, wheat, corn and rice. (
Maharashtra completes kharif sowing on 84 per cent of targetedarea
Kharif sowing in Maharashtra has been completed on 84% of thetargeted area. Area under soyabean, pulses and cereals is set to increasewhile area under cotton is expected to decline. The state has received148.8 % of the average rainfall till July 22. Of the 355 taluks in the state,317 have received more than 100% rainfall. Kharif cereals sowing hasbeen completed on 29.68 lakh hectare area as on July 22, as compared to23.11 lakh hectare on the same day last year. Pulses sowing has beencompleted on 18.08 lakh hectare, which is more by one lakh hectare overthe previous year. Area under moong and urad has increase slightly.Oilseeds have gained acreage this year mainly due to diversion of areafrom cotton to soyabean. Oilseeds have been sown on 39.55 lakh hectareas against 31.12 lakh hectare during comparable period of last year.
(Source: Economic Times)
Brazil's south coffee, cane, wheat belt braces for frost
Frost descended on wheat growing areas that are vulnerable to damagein Brazil's south early on Tuesday, while coffee and sugar cane growingareas prepare for the worst to come Wednesday morning, localmeteorologist Somar said. Agro-economists with the state governmentof Parana, which produces about 45 percent of Brazil's wheat, said about40 percent of the state's area planted with wheat is vulnerable to lossfrom a frost. Brazil's annual wheat demand is between 10 million and 11million tonnes, but it produces only around 5 million tonnes each year.Somar said frost had appeared in various regions of the state earlyTuesday. Brazil is one of the world's leading importers of wheat, securingmost of its foreign supplies from neighboring Argentina. Short suppliesthere this season has forced Brazilian flour mills to turn to North Americato supplement its wheat import needs. Brazil was expected to import asmuch as 2 million tonnes from the United States and Canada, beforenews of the frost. (
Pulses import bill to decline 25% on higher domestic output
India’s pulses import bill is set to decline 25 per cent this financial year
due to a record domestic output and an unabated fall in prices globally.The fall in import will save around $730 million (Rs 4,350 crore) outflow.Pulses import hit a record 4.02 million tonnes (mt) in 2012-13, anincrease of 15 per cent from 3.5 mt the previous year. But the import billshot up 41.34 per cent to Rs 13,354 crore in 2012-13 from Rs 9,448 crorein the previous year. The sharp increase in the bill was attributed to astaggering 13.6 per cent depreciation in the rupee against the dollar.
“This year, however, import is set to decline by a minimum 0.50 mt or 13
per cent of the entire import quantity on bumper output estimates fromlocal sources. Coupled with that, pulses prices have fallen by at least 15per cent since April. Accumulatively, this will lower pulses import bill by
25 per cent,” said Bimal Kothari, vice
-president of India Pulses and GrainsAssociation (IPGA) and owner of Pancham International Ltd, a Mumbai-based pulses importer.
(Source: Business Standard)
Onion prices more than double to Rs 36-40/kg in metros
Onion prices have more than doubled to Rs 36-40 per kg in retail marketsof metro cities in last one year, adding to the woes of consumers alreadyburdened with overall price rise. Currently, onion is being sold at Rs 36per kg in retail markets of the national capital and Rs 32 per kg each inMumbai, Kolkata and Chennai, according to the Consumer AffairsMinistry that monitors prices of 22 essential food items. In somemarkets, onion is being sold at more than Rs 40 per kg depending onlocalities and quality, traders said. (
Source: Business Standard)
Ban on onion exports won't impact domestic prices
A section of the Department of Agriculture feels export curbs on onionswould have little impact on the prices of the commodity, as the price of Indian onions is more than prices abroad and exports have shown aslowing trend. Officials said Indian onions were priced at about $480 atonne in the international markets, while prices of onions from Pakistanand China stood at $410 a tonne and $300-350 a tonne, respectively.
“Therefore, to expect an export ban on oni
ons to have a major impact ondomestic prices is unreasonable, as exports have already slowed because
of the price differential,” said a senior official.
In June, India exportedabout 1,50,512 tonnes of onions, a 23 per cent fall compared to May anda 9.01 per cent fall compared to April. In the April-June period, onionexports stood at 5,11,616 tonnes, worth Rs 776.47 crore, around 1.09per cent less than in the corresponding period last year. In 2012-13,exports stood at 1.82 million tonnes.
(Source: Business Standard)
UP sugar mills seek govt help as cane arrears pile up
Sugar mill owners in Uttar Pradesh have told the state that they can't payeven last year's cane price of Rs 280 per quintal unless the governmentgives a relief of Rs 40 per qtl to the industry or pays this amount to thesugarcane growers directly. The move comes amid industry's fears thatthe government may announce a steep hike in the sugar cane price forthe next season to woo the farmers before the upcoming Lok Sabhaelections. In a letter to the cane commissioner, the UP Sugar MillersAssociation has written that the "cane price paying capacity of thefactories in Uttar Pradesh for 2013-14 is estimated to be at a maximumof Rs 240 per qtl" only. "Looking at the precarious condition that thesugar industry is in the current year, the factories would be able to payeither the FRP fixed by the Centre for 2013-14, or at best the previousyear's cane price of Rs 280 per qtl with a subsidy of Rs 40/- per qtl tomeet the shortfall," the letter states.
(Source: Financial Express)