Cotton Corp Procures Record 4 Million Bales And Other Allied Industries - Dec 26, 2008

Cotton Corporation of India (CCI), the nodal government agency for procuring cotton in the country, has procured a record 4 million bales so far this year. CCI's cotton procurement in 2008-09 is four times higher than that seen last year. The aggressive buying by CCI has already sent shivers down the spines of exporters, ginners and textile industry players.

The increased buying of cotton by CCI at the Minimum Support Price, raised by 40 per cent this year, has ensured cotton prices did not fall. The industry, already resisting high support prices, are now feeling the heat as CCI's aggressive buying is affecting their plans to procure cotton from the market. Farmers are not offloading their holding in the markets as they expect the prices to surge further. This has further added to the woes of textile, ginning and other allied industries.Around 11.8 million cotton bales (1 bale=170 kg) have arrived in various markets across the country as on December 24.

China Largest Coal Producing City Suspend In Mongolia Region - Dec 26, 2008

Half coalmines in Ordos, China's largest coal producing city in Inner Mongolia, North China, have suspended production on account of sliding coal price and weakening coal demand, according to the Coal Administrator Bureau of Ordos in Inner Mongolia Autonomous Region.It is learned that coal price in Ordos climbed from 22 yuan per ton in 2001 to 500 yuan per ton in the first half of 2008.

However, after September, coal price in many local coalmines has declined by 100-150 yuan per ton. There are 276 coalmines in Ordos at present. The resource recovery rate has been raised to 60 percent from 30 percent through technological renovation.

In 2007, coal output in Ordos reached 200 million tons, making it the largest coal producing city. Ordos has abundant coal reserve, with 169.6 billion tons proved, accounting for half of coal reserve in Inner Mongolia Autonomous Region and one sixth of the national total.

Mustard Futures Trades In A Tight Range Fresh Short Positions - Dec 26, 2008

Mustard futures continued to trade sideways in today's trading, on lack of conviction on either the bullish and bearish side of the aisle. On NCDEX, All the Mustard futures were mired in a 2-3rupees range in today's trading.On NCDEX, January Futures were trading at Rs 582, down Rs 0.40 per 20 kg while February Futures were trading at Rs 497.65 per 20 kg, up Rs 4.45.

Traded volumes of January contract were at 45200, which were 88% of the previous day's total traded volumes while January Future has added 20% contracts today, implying fresh short positions.

Vietnam Abolishes Rice Export Tax In The Below Prices Level - Dec 24, 2008

According to reports in the local media, Vietnam's Finance Ministry has abolished an export tax that was imposed on rice in August.The ruling ending the tax came into effect on Dec. 19 after exporters sought in October to remove the tax imposed on rice sold at $800 PMT or more to help boost domestic supply, the Ho Chi Minh City Laws newspaper reported.The duty has had little impact because export prices have been below the taxable level.

Asian rice prices almost trebled to their highest level ever this year, as export restrictions by leading suppliers fuelled insecurity over food supplies. Vietnamese rice soared to $1,000 PMT in May. But when the tax went into effect on Aug. 15, prices for Vietnamese 5 percent broken rice, the highest quality grain among the country's common grades for export, had fallen to $550 PMT, FOB. Last week it stood at $400 PMT.

China Fourth Largest Zinc Smelter Expects Processing Fees To Drop - Dec 24, 2008

Shenzhen Zhongjin Lingnan Nonfemet Co, China's fourth-largest zinc smelter, said the fees it charges mining companies to process raw material into finished metal may drop by a third as metal prices plunge. Zhongjin Lingnan expects contract fees to drop to US$200 a metric ton at a basis price of US$1,000 a metric ton,Han Minzhi, general manager of sourcing, marketing and sales, said yesterday.

Fees for 2008 were US$300 at a basis price of US$2,000, according to Macquarie Group Ltd. Zinc, used to galvanize steel, has fallen 51 percent this year on the London Metal Exchange. Treatment charges, known as TCs, may drop for the first time in three years as a result and extend losses at smelters.

The global refined zinc surplus widened to 121,000 tons in the first 10 months of this year, from 14,000 tons a year earlier, the International Lead and Zinc Study Group said this month. China's zinc smelters, which are all unprofitable, have cut production to try to boost prices and ease oversupply. The nation's largest, Zhuzhou Smelter Group Co, reported a loss of 5 million yuan (US$730,000) in the third quarter.

MCX Zinc benchmark contract is now trading almost unchanged from last night close at Rs 55.65 per kg. Supports for the contract are at 54 levels. Upper cap for the company are at 56.90 levels. LME three month forward prices are at $ 1164.5 per tonne up $ 4.5. Zinc inventories data on LME registered a decrease of 25 tonnes to 234725 tonnes.

Jeera Futures Are Currently Trading At 2% Discount To Spot Market - Dec 24, 2008

Jeera prices have been shaved off by almost 1% in today's trading. Jeera futures are currently trading at 2% discount to spot market.Amidst long liquidations in future's market has mounted the bearish sentiments in both futures and spot market. However, exporter's demand is still robust against waning stock position at physical market. As per market sources, the total stock availability of jeera were at 4-4.5 lakh bags on 23rd December.

Long liquidation by arbitragers in spot market as futures were traded below spot has also added bearishness in future market. Selling was also on the back of strong production estimates for the next year as higher sowing acreage is likely during the current rabi season.

In today's trading , Jeera Ncdex January Benchmark Future was traded at Rs 10260 per quintal , down Rs 60 from previous close. On the other side, spot market was at Rs 10670 per quintal at Unjha Mandi

Cardamom Sprawls On Farmers Liquidation At Spot Market - Dec 24, 2008

Cardamom prices have been shrugged off by almost 5-7% in last one week due to fresh liquidation by farmers along with sturdy supply from Guatemala in international markets. As per market sources, strong selling by farmers at physical markets has witnessed the fall of Rs 30-40 per kg in cardamom prices at Kochi market.

Cardamom crop has reported the fourth round of harvesting which enhances the fresh arrivals of 7mm and 8mm of bold quality cardamom. At Kochi mandi, prices of 7mm were languished at Rs 490-510 per kg while 8 mm was at Rs540-545 per kg.

The total production of Indian cardamom was at 12000 tonnes against 9000 tonnes reported last year. Selling was also bolstered by strong arrivals of Guatemala crop at International market. However, the total crop size of Guatemala is estimated at 18000 tonnes against 22000 tonnes reported last year.

Australia Cotton Crop May Rise To 1.4 Million Bales Rain Benefited - Dec 23, 2008

Cotton production in Australia, the world's fifth-largest exporter of the fiber, may more than double in 2009 after recent rain benefited crops.National output may be 1.4 million bales, up from 600,000 bales a year earlier, Namoi Cotton Co-operative Ltd. said today in a statement. The Wee Waa, New South Wales-based company said it will be responsible for selling more than 35 percent of the crop. “The larger cotton crop will facilitate increased utilization of ginning and warehousing infrastructure,” Namoi Cotton said. Australia's cotton production is forecast to expand for the first time in four years in 2008-2009 as drought conditions ease in growing regions.

Output had shrunk as lingering dry weather reduced water supplies available for irrigation. Cotton for March delivery rose 1.5 percent to 45.89 cents a pound when last traded yesterday on ICE Futures U.S. in New York. The commodity has dropped 33 percent this year.

Today's forecast compares to the 1.36 million bale estimate made by a U.S. Department of Agriculture attaché report released on Dec. 1. A bale weighs 480 pounds. Namoi also said profit excluding tax and payments to farmers for the year ending Feb. 28, 2009, will be A$8 million ($5.5 million), down from an earlier prediction of A$12 million.

Asia Market Below International Oil Futures Trades In Below $40 - Dec 23, 2008

International oil futures dipped below the $40 a barrel mark as the Asian equity markets dropped sharply in thin trading as investors rushed to take profits ahead of the holidays. Oil prices continued to tumble despite the huge output cuts by the OPEC member nations.

Among Asian bourses, Hong Kong's Hang Seng index fell by nearly 3.75% in early trade, China's Shanghai Composite was off 2.9% at 1,929.28 by late morning, Bombay Stock Exchange benchmark Sensex was down 188.36 points at 9,740.62. Japanese markets were closed for the Emperor's Birthday holiday.

The weak energy demand stemming from the global economic slowdown continued to plague the oil market. Another factor affecting prices is the huge build in US stockpiles. Oil reserves in Cushing, Oklahoma, where light, sweet crude oil is stored, are at maximum capacity. Incapable of parking more oil there at the end of Friday's session, investors were forced to sell off, they added. The falling import demand from China, Japan and other major users is also playing a crucial role in depressing the oil prices.

NYMEX Light Sweet February oil traded in a tad range of $ 39.88- 39.05 per barrel. The January contract expired on Friday after diving in intraday trade as low as $32.40 per barrel -- which was the lowest level since February 9, 2004. MCX Oil prices were also stuck below the Rs 2000 mark and tumbled to as low as Rs 1944 per barrel. It may trade in the range of 2025-1920 levels.

Kazakhstan To Cut Its Crude Export Duty By 31.4% In Mid January - Dec 23, 2008

Kazakhstan will cut its crude export duty 31.4% to $139.79 per metric ton in mid-January, the governmental press service said on Monday. "The government resolution, which is due to come into effect 30 days after its first official publication, was published in official media on December 20," a government spokesman said.

The government will also reduce the unearned income tax for oil exports to $57.31 per ton from $121.32. According to the resolution, the government will set oil export duty on a monthly basis and abandon the previously accepted quarterly basis. Kazakhstan introduced crude export duty, pegged to world oil prices, in May.