Record Cotton Export, Crop Expected In 2007-08

Mumbai: The country is set for to harvest yet another record crop of cotton. Going by acreage and rainfall trends, there is conviction that production could surge by 10 per cent to about 300 lakh bales (170 kg) in 2007-08 (October-September) from around 270 lakh bales this season. According to crop status report prepared by East India Cotton Association, cotton acreage has increased from 58 lakh hectares to 69 lakh ha, with Bt Cotton alone accounting for an estimated 24 lakh ha till the latter half of July.
Arrivals of 2006-07 crop are estimated have topped 270 lakh bales as of July 21, as compared with the crop size seen at 275 lakh bales max. Exports from out of the 2006 crop are currently figured at about 45 lakh bales, with bulk of shipments destined for China (27-30 lakh bales). Other importing countries include Pakistan, Bangladesh, Turkey, Thailand and Indonesia. Strong domestic consumption growth (240 lakh bales) in 2006-07 is likely result in a closing stock of less than 50 lakh bales, the lowest in three years. International cotton market is hoped to turn positive on the price front.

Rubber Witnesses Steady Trend

Kottayam: Spot rubber prices ruled steady on July 30. Sheet rubber RSS 4 closed at Rs 85.50 and Rs 86 a kg respectively at Kottayam and Kochi against Rs 85 a kg on the previous weekend. In futures, the August contract for RSS 4 completed at Rs 85.20 (83.64) a kg on MCX, while the prices were further better quoting the August contract at Rs 87.02 (85.14) a kg on National Multi Commodity Exchange. The September contract for the grade improved to Rs 83.83 (82.91), October to Rs 82.60 (82.06) and November contract to Rs 81.90 (81.52) a kg on NMCE. RSS 3 bounced back at its August futures to 259.9 Yen (Rs 88.52) a kg from 254.6 Yen a kg at TOCOM. Spot prices were (Rs/kg): RSS-4: 85.50 (85); RSS-5: 84 (83); ungraded: 81 (81); ISNR 20: 83.50 (83) and latex 60 per cent: 59.45 (59.45).

Coonoor Tea Price Witnesses 52-Week Low

Coonoor: Prices declined to new lows at the Coonoor Tea Trade Association (CTTA) auctions on July 27, with the demand remaining inadequate to absorb the volume at high bids. Prices, which had declined to Rs 34 a kg in the last three weeks, fell to the lowest level of 2007 at Rs 32 this week. Some teas were sold for Rs 32.50 and others at Rs 33, thereby collecting a substantial volume of plain teas in the 'less than Rs 34' bracket. In the case of others also, most invoices could be sold only when the prices declined Rs 2 to 3 a kg. Upcountry demand was not spread evenly to all invoices. Among the corporate purchasers, Hindustan Unilever Ltd (HUL) bought good medium varieties.

FMC Says Commodity Markets Will Stabilise In 3-4 Years

Hyderabad: The Forwards Markets Commission (FMC), the regulator for forwards markets under the Union Ministry of Consumer Affairs and Distribution, foresees stabilisation of commodity markets in the next three-four years. It said expansion of the spectrum and participation of a wide variety of players in different commodities would help achieve equilibrium. It highlighted issues like quality assessment and lack of infrastructure. The Commission will look into all the issues faced by hedgers and facilitating their participation would be its priority.

Rubber Witnesses Steady Trend

Kottayam: Physical rubber prices finished unaltered on July 27. Sheet rubber closed unchanged at Rs 85 a kg both at Kottayam and Kochi as on July 27. The August contract improved to Rs 85.31 (84.51), September to Rs 82.85 (82.42), October to Rs 82 (81.83) and November to Rs 81.55 (81.18) per kg for RSS 4. The August contract increased to Rs 84.63 a kg from Rs 83.46 a kg on MCX. Spot rates were (Rs/kg): RSS-4: 85 (85); RSS-5: 83 (83); ungraded: 81 (81); ISNR 20: 83 (83) and Latex 60 per cent: 59.45 (59.45).

Pulses Acreage Rises By 13 Per Cent

Pulses production, which is a cause of concern for the government due to demand-supply gap, may increase in Kharif 2007 as area under coverage for the crops has gone up by 13 per cent till July 26. The pulses acreage stood at 84.94 lakh hectare so far this year against 74.88 lakh hectare in the year-ago period.
Pulses output in the country is estimated higher at 14.23 million tons during 2006-07 against 13.39 million tons in previous year, but is still short of demand which is pegged at over 17 million tons. Out of total production estimated for 2006-07, 4.74 million tons is from Kharif and 9.49 million tons is from Rabi crops.The government had said it would import 15 lakh tons of pulses this year to fill this demand-supply mismatch, which would help in stabilising the prices of the commodity. It is importing pulses through state-owned agencies STC, MMTC, PEC and NAFED by subsidising them 15 per cent of the cost.

Besides, to increase production the government targets to bring an additional two million hectare under pulses. Area under coverage of arhar stood at 26.97 lakh hectare till July 26 as against 27.53 lakh hectare in the year-ago period. Similarly, urad acreage is reported higher at 18.92 lakh hectare against 16.85 lakh hectare, while moong acreage stood at 24.95 against 18.41 lakh hectare.

Rubber Sees Weak Trend

Kottayam: Spot rubber lost its steam missing follow up support from the consuming sector. A weak closing in international futures and its impact in domestic futures kept the trading activities comparatively dull on the physical front throughout the day. Sheet rubber closed unchanged at Rs 85 a kg at Kottayam, while the grade shed 50 paise to reach the same level at Kochi. The rubber futures fell on NMCE. The August contract weakened to Rs 84.60 (86.25), September to Rs 82.40 (84.04), October to Rs 81.91 (83.47) and November contract to Rs 81.40 (82.84) per kg for RSS 4. Spot rates were (Rs/kg): RSS-4: 85 (85); RSS-5: 83 (82.50); ungraded: 81 (81); ISNR 20: 83 (82.50) and latex 60 per cent: 59.45 (59.45).

Pepper Future Mkt Declines

Kochi: The pepper futures market on July 27, declined on bearish activities, while the fundamentals remained unchanged. Spot sellers were limited at lower levels as the futures market continued its falling trend. The market is totally in the hands of intra-day traders who are pushing it up and down. Reports that Vietnam has decreased its prices have also contributed to the decline in the futures. Vietnam was offering Asta grade at $3,800 a tonne (f.o.b) while Brazil was quoting B Asta at $3,800 - $3,900 (f.o.b). Strengthening of dollar on July 27 has made the Indian prices advantageous. Spot prices in tandem with the futures market trend declined by Rs 200 a quintal on Friday to close at Rs 13,800 (un-garbled) and Rs 14,400 (MG 1).

Kochi Tea Auction Sees Mixed Trend

Kochi: Firm demand shored up the price of good liquoring dust varieties at the Kochi tea auction. While high grown orthodox and other varieties sold at last week's levels, good liquoring varieties were up by Rs 3. There was 9,61,000 kg on offer at the dust auction. Best CTC varieties quoted at Rs 62-75, medium CTC was at Rs 55-59 and below medium ranged at Rs 46-50. High grown BOPD commanded Rs 104-106, medium BOPD was at Rs 45-56 and secondaries ranged at Rs 40-43. Medium and plain varieties quoted last week's levels, good CTC were firm to dearer. Best Nilgiri varieties commanded Rs 75-90, medium orthodox ranged at Rs 60-67 and plain orthodox was at Rs 42-47.

Renuka Sugars Acquires Two Firms

Shree Renuka Sugars Ltd has bought the Pune-based KBK Chem-Engineering, which is into ethanol engineering, procurement and construction company, for Rs 35 crore. Additionally, KBK Engineering undertakes turnkey projects for setting up erection and commissioning of ethanol plants. It has a turnover of Rs 85 crore of which 45 per cent comes from overseas projects.
Renuka Sugars has also acquired a 100 klpd (kilio litres per day) distillery from Dhanuka PetroChem in Khopoli, Maharashtra for Rs 6 crore. The distillery can produce ethanol from alcohol. The company has plans to increase its ethanol capacity from 450 klpd to 900 klpd in next two years with an investment of Rs 105 crore. It is also raising co-generation capacity at Havalaon plant in Karnataka from 25 MW to 129 MW at a cost of Rs 90 crore.

Rubber Witnesses Up Trend

Kottayam: The rubber prices were extremely optimistic on July 26. Sheet rubber surged to Rs 85 and Rs 85.50 a kg respectively at Kottayam and Kochi from 82 a kg as covering groups and purchase agents turned aggressive. In futures, the August contract for RSS 4 flared up to Rs 84.99 a kg from Rs 81.99 on MCX. The August contract for the grade finished sharply higher at Rs 86.27 (82.96), September at Rs 84 (80.85), October at Rs 83.52 (80.31) and November at Rs 82.40 (80) per kg on NMCE. The August futures for RSS 3 increased to 259.3 Yen (Rs 86.84 ) from 249.9 Yen a kg at TOCOM. RSS 3 (spot) closed at Rs 84.53 against Rs 84.39 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 85 (82); RSS-5: 82.50 (80.50); ungraded: 81 (78); ISNR 20: 82.50 (79.50) and latex 60 per cent: 59.45 (58.40).

Pepper Future Declines On Selling Pressure

Kochi: Pepper futures market on July 26, saw a sharp decline on selling pressure and on reports that Vietnam had eased its price for FAQ 500 GL to $3,350 a tonne (fob). There was selling pressure of un-garbled pepper. Spot selling picked up and 150 tonne spot pepper were traded on July 25, while 85 tonnes on July 26. The delayed action by the Forward Markets Commission to raise the near month level limit for members to 500 tonnes and clients to 170 tonnes also alleged to have had its negative impact on the market. A time bound action is needed from the regulator. In the international market, Brazil prices moved up on July 25, but it did not influence the Vietnam prices. Vietnam Asta was quoted at $3,800-$3,850 a tonne (fob). Spot prices on selling pressure fell by Rs 100 a quintal on Thursday to close at Rs 14,000 (un-garbled) and Rs 14,600 (MG 1).

Cardamom Price Declines On Poor Buying Support

Kochi: Cardamom prices fell at the auctions held in Kerala and Tamil Nadu during the week for want of purchasing support. Exporters and major domestic players abstained from purchasing probably because of the high price. Auctioneers, who had started auctions early this month, are likely to continue with the auction as they believe that it would help liquidate the old stock. Very little quantity is arriving from the new crop as there is not much for harvesting, which might pick by mid-August.
At the auction held in Kumily by the Cardamom Processing and Marketing Company (CPMC), 24 tonnes of the spice arrived and 23 tonnes were sold. However, the prices fell from that of the previous auction. The average price stood at Rs 389.87 a kg. The maximum price of Rs 530 a kg was got by 8mm bold from fresh crop. Prices of other varieties were 8mm Rs 500-525, 7.5 mm Rs 450-475 and 7mm Rs 400-455 a kg. Total arrivals as on July 25 stood at 8,336 tonnes against 9,792 tonnes as on July 19, 2006 on which date the last auction of the previous season was held. The sales as on July 25 this year stood at 7,659 tonnes against 9,149 tonnes last season. The weighted average was at Rs 315.16 a kg against Rs 215.28 the previous season.

CITI-CDRA's Cotton Tech Scheme Covers 1,100 Farmers In Vidarbha

Coimbatore: The Confederation of Indian Textile Industry's Cotton Development and Research Association (CITI-CDRA) has conducted cotton production technology demonstration to the 1,100 farmers in Buldhana district in the Vidarbha region in Maharashtra during the current season. The demonstration under the Ministry of Agriculture's sponsored front line demonstrations (FLDs) scheme of the technology mission on cotton is targeted at improving the yield through transfer of modern production technologies which includes reducing the cost of cultivation. The FLDs would be extended in the four villages of Shelapur, Pimpri Gawli, Talani and Talkhed in Buldhana district. These programmes cost Rs 24 lakh and the farmers will be eligible for input subsidy worth of Rs 1,400 per acre, according to CITI-CDRA. The farmers have preferred for Bt cotton of Bunny, Mallika, Rasi-2 and Brahma hybrids on a large scale in the region.

Alleppey Coir Receives GI Certification

Kochi: Mr Gopal Krishna Pillai, Union Commerce Secretary, has gave the Geographical Indication (GI) certification for Alleppey coir to the Coir Board Chairman, Mr A.C. Jose, at a function held at Alappuzha. The coir industry has to opt for a branding exercise if Indian coir products have to secure a decent value in the global as well as in the domestic market. The Coir Board Chairman detailed the action taken by the Board to redress the problems of the coir export Industry. The meeting was followed by a technical workshop on Fast changing scenario of coir export realm.

Rubber Price Increases

Kottayam: Physical rubber prices increased on July 25. RSS 4 firmed up to Rs 82 from Rs 81.50 a kg at Kottayam. The August contract increased to Rs 82 from Rs 80.93 a kg on MCX. The last traded price for the August contract on NMCE was better at Rs 83 (81.78), September at Rs 80.90 (80.29), October at Rs 80.25 (80.04) and November at Rs 80 (79.63) per kg for RSS 4. The turnover was 2,417 (1,623 ) tonnes. The open interest was 6,654 (6,562) lots with 3,141 (3,180) lots in August, 1,999 (1,952) lots in September, 1,258 (1,189) lots in October and 256 (241) lots in November. RSS 3 fell at its August futures to 249.9 Yen (Rs 83.99 ) from 251.9 Yen a kg at TOCOM. The grade closed weak at Rs 84.39 against Rs 84.64 a kg at Bangkok spot. Spot rates were (Rs/kg): RSS-4: 82 (81.50); RSS-5: 80.50 (80); ungraded: 78 (77.50); ISNR 20: 79.50 (79.50) and latex 60 per cent: 58.40 (58.40).

Palm Oil Import Duty Stands At 45Pc: FM

New Delhi: The Finance Ministry has cleared up the basic customs duty (BCD) on crude palm oil and crude oil stands at 45 per cent and not 40 per cent, as was notified earlier on July 23. In a corrigendum issued here on July 25, the Revenue Department has informed that the 40 per cent rate notified on July 23 should be read as 45 per cent. Prior to July 23, the BCD on CPO was 50 per cent, while being 57.5 per cent in the case of RBD (refined, bleached, de-odourised) palm oil and olein. The Committee on Edible Oils had suggested a BCD differential of 7.5 percentage points between crude and refined oils. If the CPO duty had been set at 40 per cent, it would have translated into a differential of 12.5 percentage points over RBD palmolein. Now that the Ministry has clarified the duty at 45 per cent, it restores the recommended 7.5 percentage points differential. Meanwhile, the landed price (cost & freight, Mumbai) of CPO has gone up from $805 to $815 per tonne since the latest round of duty reduction effected on July 23. Thus, the duty cut, rather than making imported oil cheaper to Indian consumers, has only led to a further firming up of international prices.

Coonoor Tea Auctions Volume Sees Falling Trend

Coonoor: The declining trend in volumes at the Coonoor Tea trade Association auctions saw in the last few weeks continues this week also. Sale No: 30 will be held on July 26 and July 27 with a total volume of 12.08 lakh kg. Of the 12.08 lakh on offer now, as much as 8.87 lakh kg belong to the leaf grades and 3.21 lakh kg, dust grades. Again, as much as 10.98 lakh kg belong to the CTC variety and only 1.1 lakh kg belong to the orthodox variety. In the leaf grade, only 0.53 lakh kg belong to the orthodox, while 8.34 lakh kg belong to the CTC. In the dust grade, only 0.57 lakh kg belong to the orthodox while 2.64 lakh kg belong to the CTC variety.

Pepper Futures Market Sees Steady Trend

Kochi: Pepper futures market ruled almost firm on July 23, following the FMC decision to raise the near month level limit for members and clients to 500 tonnes and 175 tonnes, respectively, effective from end of July 23. Besides, issues related to warehouse facilities are also allegedly doing problems to the players. In the international market, Europe is on summer holidays while US market is keeping quiet. Meanwhile, international players in Europe who supply to industry in the US are talking down the market.
Nearby positions on NCDEX increased marginally while that on NMCE declined. August contract on NCDEX on July 23, increased by Rs 40 a quintal to close at Rs 14,843 from Rs 14,803 on July 21. September and October went up Rs 37 and Rs 22 a quintal, respectively. November, December and January fell by Rs 2 to Rs 53 a quintal. The drop in other contracts, except December, was from Rs 124 to Rs 340 a quintal. December contract went up Rs 108 a quintal. The total turnover on NCDEX moved up by 4,733 tonnes to 16,453 tonnes while on NMCE it moved up by 748 tonnes to 1,397 tonnse. Spot prices ruled firm at previous levels on July 23, at Rs 14,000 (un-garbled) and Rs 14,600 (MG 1) a quintal.

Strong rupee Decelerates Cashew Exports In First Quarter

Kochi: Exports of cashew kernels during the first quarter of the current fiscal have fall and the industry has attributed this to appreciation of the rupee against the dollar by over 10 per cent. Industry sources in Kollam, where the cashew industry in the country is concentrated for decades, said that a strong rupee had made Indian cashew kernels uncompetitive in the world market. The major competitors are Brazil and Vietnam. Cost of production/processing in Vietnam is much lower. The latest strategy of the processors is to auction in the domestic market at prices higher than that of the international market. In fact, more than 50 per cent of the raw nuts processed in the country are absorbed in the domestic market. Consequently, many major processor exporters are marketing their branded products in the domestic market through retail outlets. During April-March 2006-07, the country shipped out 1,18,540 tonnes of cashew kernels valued at Rs 2,455 crore against 1,14,143 tonnes valued at Rs 2,515 crore during the previous fiscal. Imports of raw nuts have gone up substantially during the first quarter of the current fiscal to 1,58,777 tonnes valued at Rs 412.69 crore ($100.09 million) from 1,20,864 tonnes worth Rs 374.97 crore ($82.46 million) a year ago. The cashew industry in the country has a processing capacity of 12 lakh tonnes a year and almost 50 per cent of the raw nut requirement is met by imports.

Rubber Witnesses Steady Trend

Kottayam: Spot rubber prices continued to rule firm on July 24. RSS 4 settled flat at Rs 81.50 a kg at Kottayam lacking either buyers or sellers to set the trend. On NMCE, the August contract was firm at Rs 81.86 (81.62), September at Rs 80.35 (80.07) and October at Rs 80.03 (79.94), while the far month November declined to Rs 79.75 (79.88) per kg for RSS 4. The August contract ended at Rs 80.79 against Rs 80.72 a kg on MCX. The August futures for RSS 3 declined to 251.9 Yen (Rs 83.99) from 256.6 Yen a kg at TOCOM. The grade's spot shed 10 paise to close at Rs 84.64 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 81.50 (81.50); RSS-5: 80 (80); ungraded: 77.50 (77.50); ISNR 20: 79.50 (79.50) and latex 60 per cent: 58.40 (58.40).

22% Decline In Commodity Exchanges Turnover

Mumbai: The total turnover of the three national commodity exchanges for the fortnight ended July 14, 2007 has taken a bang compared to same period last month. Market regulator, Forward Markets Commission, data displays that MCX turnover during the fortnight ended July 14 declined 26 per cent to Rs 81,936 crore against Rs 1,11,101 crore in the fortnight ended June 15. Similarly, NCDEX turnover fell 11 per cent to Rs 29,709 crore, against Rs 33,501 crore in the comparative fortnight last month. NMCE (National Multi-Commodity Exchange) turnover was also down 9 per cent to Rs 598 crore in the fortnight against Rs 658 crore for same fortnight last month.
However, few regional commodity exchanges registered negligible rise in their turnovers, during the fortnight under review. The total turnover of all the 23 exchanges, comprising the three national commodity exchanges, was down 22 per cent at Rs 1.17 lakh crore in the fortnight, against Rs 1.50 lakh crore in the comparative fortnight last month. The rise and decline in commodity prices also impacts turnover of the exchanges. Of the 27 commodities traded on MCX, only 10 contributed to the total turnover.

Among them guarseed, gold and pepper logged the highest traded volume. Rubber, pepper and raw jute registered the highest volume of trade in NMCE. Reflecting the volatility in agriculture commodity futures prices, pepper for July delivery during the fortnight under review reached a high of Rs 15,375 per quintal on July 2 and plunged to a low of Rs 13,830 per quintal on July 10. The total trade value on the NCDEX was Rs 3,591 crore. Total traded value in NCDEX was Rs 5,169 crore.

Rubber Witnesses Steady Trend

Kottayam: The physical rubber prices were almost firm on July 23. Sheet rubber RSS 4 closed at Rs 81.50 a kg both at Kottayam and Kochi as on the previous weekend. The rubber futures finished slightly down quoting the August contract at Rs 80.60 (81.21) a kg on MCX. On NMCE, the August contract declined to Rs 81.73 (82.15), September to Rs 80.10 (80.62), October contract to Rs 79.86 (80.50) and November to Rs 79.88 (80.30) per kg for RSS 4. The August futures for RSS 3 closed at 256.6 Yen (Rs 85.51 ) against 257.5 Yen a kg at TOCOM. But the grade improved by 86 paise to Rs 84.74 from Rs 83.88 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 81.50 (81.50); RSS-5: 80 (80); ungraded: 77.50 (78); ISNR 20: 79.50 (79.50) and latex 60 per cent: 58.40 (58.40).

Jeera, pepper open limit hiked

Mumbai: National Commodities and Derivatives Exchange of India (NCDEX) and Multi Commodity Exchange of India (MCX) have improved the open position limit of jeera and pepper futures contract from July 23. The open interest for jeera has been improved from 120 tonnes to 200 tonnes for members and for clients, it has increaded from 40 tonnes to 70 tonnes. For pepper, it has been raised from 300 tonnes to 500 tonnes for members and from 100 tonnes to 170 tonnes for clients. The committee members argued that restrictive position limits resulted in lower deliveries thereby leaving the market exposed to price volatility. In the long-term prices are set to increase as the production this year expected to fall. Jeera for August delivery on NCDEX gained Rs 10 per tonne to Rs 12,519 and the September contract was up by Rs 36 per tonne to Rs 12,710.

Kolkata Auction Sees Good Demand For CTC Teas

Kolkata: Last week (i.e. the week ended July 21), the demand for CTC teas in the North India auction centres at Kolkata, Siliguri and Guwahati was generally good. The western Indian as well as other domestic purchasers operated with strength. The highest price was Rs 148 per kg. Orthodox teas continued to see good demand, with good and tippy whole leaf and brokens holding attractive levels. The West Asia and Iran markets operated with strength with fair amount of inquiry from the CIS countries. Continental buying was evident on tippy sorts, selling up to Rs 610 per kg. Darjeeling teas saw a good demand. Prices eased following quality. Weather and climate in the tea growing areas in North India appear to be stabilising into normal seasonal conditions and crop growth is showing signs of recovery from mid-July.

Rubber Sees Steady Trend

Kottayam: Spot rubber rates were almost firm on July 21. RSS 4, the only loser, weakened by 50 paise to Rs 81.50 from Rs 82 a kg on brisk trading. The rubber futures managed to finish green in the weekend session. The August contract ended at Rs 81.45 (81.38) a kg on MCX. The August contract on NMCE downed the shutters at Rs 82.15 (82.05), September at Rs 80.70 (80.21), October at Rs 80.31 (80.10) and November at Rs 80.35 (79.90) per kg for RSS 4. Spot rates were (Rs/kg): RSS-4: 81.50 (82); RSS-5: 80 (80); ungraded: 78 (78); ISNR 20: 79.50 (79.50) and latex 60 per cent: 58.40 (58.40).

Pepper Futures Price Decline

Kochi: Pepper futures market last week saw wild fluctuations and closed on July 21, far below the previous weekend closing prices and remained competitive in the international market. July contract on NCDEX matured on July 21 and 965 tonnes of pepper was delivered. The fall on NCDEX was from Rs 151 to Rs 289 a quintal while on NMCE, it was from Rs 14 to Rs 123 a quintal. Total turn over on NCDEX fell by 24,647 tonnes to 1,14,673 tonnes while on NMCE, it dipped by 862 tonnes to 7,891 tonnes. The open interest July and Aug fell by 1,300 tonnes and 4,556 tonnes respectively on NCDEX. Spot prices ruled firm at previous weekend closing of Rs 14,000 (un-garbled) and Rs 14,600 (MG 1) a quintal.
Brazil where harvesting has started in a small way in certain areas said to be showing some selling interest for Aug/Sep. Steady prices at higher levels in the international market signals that there is a tight supply position. In India, though prices were up, trading, however, was slow. Spot prices of garbled black pepper increased from Rs 14,721 a quintal at beginning of the week to Rs 14,926 on July 19. In Vietnam, prices were also reported to be on the up trend. At Daklak, prices for raw material increased by VND 1,000 to VND 52,000 a kg this week. In Sarawak, local prices declined to MYR 9,774 a tonne from MYR 9,800 at beginning of the week. On an average, local prices of Sarawak black eased marginally by one per cent, while f.o.b. price was stable at $4,100 a tonne.

Chilli Futures Likely To Be Pessimistic

Chennai: Chilli futures and prices are likely to be pessimistic in the coming weeks despite the start of the festive season ahead. Overseas demand sees in August and September, while domestic demand too picks up in August. Sluggish demand coupled with ample supply was keeping the spot market weak and it is likely to reflect in the futures market. The August contract traded weak and closed during the weekend at Rs 3,830 a quintal.
Chana prices are likely to continue within ranges, with a positive bias. Arrivals were down in Madhya Pradesh and Rajasthan, while Maharashtra and Karnataka were seeing stock shortage besides good demand. Spot prices moved in a narrow range of Rs 2,340-80 a quintal for the Rajasthan variety. On NCDEX, the August contract closed at Rs 2,342. Soyabean oil prices are hoped to improve slightly, while guar prices could rule weak in view of projections of heavy rains in the growing areas.

Rubber Witnesses Up Trend

Kottayam: Physical rubber rates increased on July 20. RSS 4 flared up to Rs 82 from Rs 80.50 a kg both at Kottayam and Kochi as covering groups turned active driven by a better closing in TOCOM. On NMCE, the August contract improved to Rs 82 (80.39), September to Rs 80.50 (79.26), October to Rs 80.40 (79.09) and November to Rs 79.76 (78.71) per kg for RSS 4. The August contract firmed up to Rs 81.25 (80.13) a kg on MCX. The open interest on NMCE was 6,394 (6,532) tonnes with 3,056 (3,260) tonnes in August, 1,947 (1,951) tonnes in September, 1,184 (1,150) tonnes in October and 207 (171) tonnes in November. The volumes were 3,718 (4,233) tonnes. RSS 3 improved at its August futures to 257.5 Yen (Rs 84.91 ) from 251.1 Yen a kg at TOCOM. The grade closed at Rs 83.88 against Rs 83.23 a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 82 (80.50); RSS-5: 80 (79); ungraded: 78 (77); ISNR 20: 79.50 (78.50) and latex 60 per cent: 58.40 (57.90).

Pepper Futures Decline As Purchasers Liquidate

Kochi: The pepper futures market on July 20, fell on liquidation by both purchasers and sellers as the July delivery is maturing on the NCDEX. Against 125 tonnes of spot pepper traded at Rs 142-145 a kg on July 20, only 50 tonnes were traded on Friday, and at Rs 140-144. Brazil was offering September/December at $3,850-3,900 a tonne (fob) and July/August at $3,900-3,950. European purchasers were reportedly active in buying Asta grade from Brazil for converting into white, given the prevailing high prices for white pepper in the world market. July contract on the NCDEX fell by Rs 69 a quintal on July 20, to close at Rs 14,750.
The drop in other contracts was Rs 242-292 a quintal. On the NMCE, August contract fell by Rs 246 a quintal to close at Rs 14,590. The decline in other contracts was from Rs 99 to Rs 290. The total turnover on the NCDEX dropped by 4,938 tonnes to 24,556 tonnes, and by 831 tonnes to 1,216 tonnes on the NMCE. July and August positions fell by 277 tonnes and 2,017 tonnes respectively to 965 tonnes and 8,915 tonnes. The September position increased by 1,718 tonnes to 10,202 tonnes. Similarly, October also rose by 320 tonnes to 3,232 tonnes. The August position was up by nine tonnes to 1,485 tonnes.

Sri Lanka Tea Registers Highest Increase

Coonoor: Sri Lankan teas hiked the most in the first five months of this year compared with the same period a year ago. An analysis of the market trends of the various auction centres shows that in Indian rupee terms, the average price fetched at Colombo auctions was Rs 97.67 against Rs 83.23 last year. Prices rose against tight supplies as the production fell by 18 million kg (mkg) to drop to 120 mkg. The second highest increase was at Jakarta sales where the prices averaged Rs 62.96. Indonesian output increased by 3.3 mkg to reach 28.8 mkg. The combined analysis of the Indian sales as a whole shows an increase of Rs 3.35 a kg to Rs 63.48. In the South, prices rose by Rs 5.10 a kg to Rs 54.82. In the North, the increase was only Rs 1.40 to Rs 67.56.

Controls Lifted Over Jaggery Production

The Government has decided to do away with the controls over manufacture of jaggery to promote small-scale industries in the sector, besides helping cane growers."The Union Cabinet gave its approval for dispensing with control over jaggery and gave its approval for amending the Sugarcane (control) Order, 1966," Information and Broadcasting Minister P R Dasmunsi said.
He said the amended order would be called Sugarcane (Control) Amendment Order, 2007. The new order will also help sugarcane farmers to dispose off their cane at higher prices, he added. According to a senior government official, the move is aimed at helping small-scale gur industries to grow. "Since sugarcane supplies are in abundance, this will also help the cane farmers besides the gur industry," the official said.The present law restricts jaggery production by such industries to a certain limit.

Govt Announces Concessions For Coir Exports

Kochi: The Centre has declared concessions to ease the impact of the increasing rupee on the coir sector. The eligibility of coir and coir products has been enhanced from 1 per cent to 3 per cent on FOB value under the Duty Entitlement Passbook Scheme from April 1, 2007. The increase will result in coir industry getting additional benefit to the tune of Rs18.15 crore against Rs 6.05 crore now. The Finance Ministry has also provided 2 per cent point subvention of pre-shipment credit up to 180 days and post shipment credit up to 90 days during April to December 2007.

Coonoor Tea Auctions See High Volume On Offer

Coonoor: Volume continues to be high at the auction of the Coonoor Tea Trade Association (CTTA) sale this week. A volume of 12.23 lakh kgs has been catalogued. It is as much as 1.7 lakh kgs more than the volume offered this time last year. Of the 12. 23 lakh kgs, 8.66 lakh kgs belong to the leaf grades3.57 lakh kgs to dust grades, 11.33 lakh kgsto the CTC and 0.90 lakh kgs to orthodox variety. In the leaf grades, only 0.34 lakh kgs belong to the orthodox variety, while 8.32 lakh kgs belong to the CTC variety. In the dust grades, only 0.56 lakh kgs belong to the orthodox variety while 3.01 lakh kgs belong to the CTC variety.

Good Demand Encourages Tea Prices At Kochi Auction

Kochi: Good demand bolstered tea prices at the Kochi tea auction where the offer was low. Good CTC dust varieties were dearer by Rs 2-4 while liquoring CTC medium rose by Rs 3-5. Bolder CTC varieties remained firm and poorer CTC witnessed less demand. High grown orthodox varieties were easier while medium orthodox remained steady. Best CTC varieties fetched Rs 60-73, medium CTC Rs 53-58 and below medium ranged between Rs 40-47. Prices of medium orthodox varieties remained steady, while medium fannings were dearer. High grown orthodox varieties remained irregular and lower fannings remained firm. Orthodox grades saw good demand from exporters.

Pepper Witnessed Weak In Near Term

Chennai: Pepper futures are seeing long liquidation and a sluggish demand in the overseas and domestic markets could see the spice ruling weak in the near-term. The open interest position for August contracts indicates long liquidation, while volumes also indicated lower participation. Pepper was seeing consolidation in the Rs 14,600-14,900 a quintal range and Rs 14,635-14,600 was crucial on the downside and Rs 14,900-15,000 on the upside. The formation of alliance by Vietnam, Brazil and Indonesia could also witness speculators enter the market, while lower stocks in other producing countries was forcing purchasers into India. Share Khan put the support for pepper at Rs 14,200 and resistance at Rs 14,800, while indicating a downtrend for now. Kotak Commodities viewed the current trend as long liquidation for August contracts and accumulation of short positions for September and October contracts.

Grains Production Pegged At Record 216.13M Tonnes

New Delhi: The year gone-by has seen the country's out put of foodgrains, cotton, sugarcane and soyabean scale all-time-highs. According to the fourth advance estimates released by the Union Agriculture Ministry here on July 19, total foodgrain production in 2006-07 has been placed at 216.13 million tonnes (mt), exceeding not only the 211.78 mt 'third advance estimates' of April 4, but also the previous record of 213.19 mt set during 2003-04. Production of wheat is now assessed at 74.89 mt (up from the third advance estimate of 73.70 mt), with those for rice (92.76 mt against 91.05 mt), coarse cereals (34.25 mt against 32.92 mt) and pulses (14.23 mt versus 14.11 mt) also being revised upwards. The latest 74.89 mt estimate for 2006-07 marks the country's second-best wheat harvest since the 76.37 mt crop of 1999-2000. The most impressive performance, however, has been for cotton and sugarcane. Cotton production in 2006-07 is estimated at a record 22.70 million bales (of 170 kg each), consolidating on the gains since the introduction of Bt hybrids in 2002. For sugarcane, the Agriculture Ministry has further revised upwards its estimate of out put to 345.31 mt compared with 322.94 mt, 315.53 mt and 283.40 mt in the previous third, second and first advance estimates, respectively. This massive 62 mt revision has, in a way, been damaging to the sugar industry, which was subjected to a prolonged export ban on the basis of the initial low estimate. Among oilseeds, soyabean output scaled a new record of 8.86 mt in 2006-07.

Cardamom Tight Supply Pushes Price Up

Kochi: Harvesting of the next cardamom crop will start by mid-August due to the delay caused by protracted dry spell during summer followed by heavy rains coupled with strong gales during the delayed south-west monsoon. Since the crop has been delayed and the growers consider the current month Aadi as inauspicious they would now begin picking only on Aadi Perukku, which falls on August 15. Sales though started on July 11 because of the thin arrivals the Cardamom Processing and Marketing Company (CPMC) held only one auction on July 18 at Kumily where the arrivals stood at 16 tonnes.
Tight supply has pushed up the prices by around Rs 40 a kg at the July 18, auction. The maximum price fetched by good colour 8 mm bold was Rs 569.50 a kg and the minimum was Rs 241. The average price stood at Rs 424.35 a kg and that was the highest ever average price during the current season, which is, officially from August 1 to July 31. The total arrivals, therefore, during the current season up to July 18 stood at 8,293 tonnes against 9.751 tonnes during the same period last season. Similarly, the sales also declined by 1,480 tonnes to 7,628 tonnes from 9,108 tonnes. The average price stood at Rs 314.83 a kg compared to Rs 215.22 last season.

About 14 tonnes out of the total arrivals of 16 tonnes was from the carry over stock. Whereas at the second auction of the previous season, the arrivals stood at 40 tonnes as the harvesting commenced in late June 2006 because of favourable weather conditions. The fall in production in the next season in Kerala and Tamil Nadu is likely to be somewhere between 30 per cent and 50 per cent because of the extensive damages caused by the unfavourable weather that so far prevailed in the growing areas.

Rubber Exporters Says Concessions Not Helpful

Kochi: The Cochin Rubber Merchants Association has said that the recent declarations of the Finance Ministry in granting concessions to exporters in order to compensate the loss suffered by them on account of rupee parity with dollar will not in any way help the natural rubber exporters. It seems that the Rubber Board and the Commerce Ministry have not done their homework while recommending the relief measures. The present declaration of a two per cent decrease in the interest rate on post- and pre-shipment credit will not give support to rubber exporters as they lose 11 per cent on export exchange rate alone. The Commerce Ministry is aware that the Indian rubber fetches low rate in the international market due to inconsistency in quality standards and non-compliance of packing standards. The natural rubber exports have declined from 73,830 tonnes in 2005-06 to 47,721 tonnes during the first half of 2006-07 and slumped to 8,824 tonnes in the second half.

Turmeric Futures May Witness Selling Pressure

Chennai: Turmeric futures are likely to see selling pressure following a decline in spot prices. There are chances of turmeric contracts decling below Rs 2,000 a quintal. Turmeric has been trading below the crucial level of Rs 2,112 since last week. The firm, which pegs the trend reversal at Rs 2,137, witnesses supports at Rs 2,025 and Rs 2,000, while resistances are likely at Rs 2,077 and Rs 2,091. Volumes chart suggest that the momentum favours selling. The first support for the August contract will be Rs 2,141 and if that is broken, then the prices could be supported in the Rs 2,128-Rs 2,069 range. On July 18, August contract was quoted at Rs 2,158 on NCDEX and Rs 2,187 on MCX. In the spot market at Hyderabad, turmeric is quoted between Rs 2,100 and Rs 2,200 a quintal.

Rubber Price Declines

Kottayam: The rubber prices fell sharply on July 18. On the physical front, sheet rubber declined to Rs 81 from Rs 83 a kg both at Kottayam and Kochi after hitting a high at Rs 83.50 on early trading. The futures market fell further quoting the August contract for RSS 4 at Rs 80.05 (82.93) a kg on MCX. The August contract for the grade fell to Rs 80.31 (83.34), September to Rs 79.18 (82.09), October to Rs 79.01 (82.16) and November contract to Rs 78.57 (82.43) per kg on NMCE. The volumes improved to 5,008 (3,065) lots. RSS 3 was weakened at its August futures to 249.3 Yen (Rs 82.74) from 254.9 Yen a kg at TOCOM. Spot prices were (Rs/kg): RSS-4: 81 (83); RSS-5: 79.50 (81); ungraded: 78 (79); ISNR 20: 79.25 (80.50) and latex 60 per cent: 57.90 (58.40).

Pepper Future Witnesses Declining Trend

Kochi: The pepper futures market continued its falling trend on bearish operations on July 18. Speculators who covered earlier and wanted to liquidate now are not finding buyers. Rumours are being spread that Vietnam has reduced its prices of 500 GL pepper. But the prices of Asta grade in all other origins, including Vietnam, continued to rule high and hence, Indian pepper still remains competitive at $3,900-4,000 a tonne (c&f). Indonesia was reportedly offering at $4,000-4,100 a tonne (f.o.b.). Vietnam was offering this grade at $4,000 (f.o.b.) while Brazil at $3,900 (f.o.b.). Overseas purchasers are looking for distant position, which is at higher levels in India; hence, nobody wants to offer. The July contract on the NCDEX fell by Rs 43 on July 18 to Rs 14,400.
The fall in other positions excluding December and January was Rs 10-35 a quintal, while December and January moved up by Rs 3 and Rs 7 respectively. On the NMCE, August dropped by Rs 36 a quintal to close at Rs 14,480. The total turnover on the NCDEX fell by 3,510 tonnes to 13,453 tonnes, while on the NMCE it declined by 697 tonnes to 988 tonnes. The total open interest on the NCDEX fell by 153 tonnes to 24,786 tonnes, while July and August positions dropped by 180 tonnes and 444 tonnes respectively.

Dollex To Acquire Maharashtra Coop Sugar Unit

Kolkata: Dollex Industries, a listed sugar, ethanol, industrial alcohol and liquor player, is poised to acquire assets of a sick Maharashtra cooperative sugar unit. The Maharashtra Commissioner of Sugar has informed the company that it has turned out to be the highest bidder for the mill, lying idle for around four years. The assets are capable of crushing 1,250 tonnes of cane per day and may be ready for operation before this October crushing season. Dollex had bid to buy the sick co-operative sugar unit - Kalamber Vibhag SSK Ltd - located in Nanded, Maharashtra. The acquisition is valued at Rs 25 crore and the company mulls to invest an additional Rs 10 crore in upgrading the capacity to 3,500 TCD within a year's time. It has also planned to add 1 lakh kilo litre of ethanol capacity, and 30 MW of co-generation of power using cane waste. The total expenditure could be Rs 50 crore. Amongst 24 bidders for the unit were Renuka Sugar, KM Sugar and Dhampur Sugar.

Coffee Board Frames Fresh Plans To Encourage Exports

Bangalore: In a bid to attract back traditional markets like Russia, the Coffee Board is brewing a fresh promotional strategy. Simultaneously, it is exploring newer markets in China, Japan, Australia and the US. India's coffee exports to the Russian Federation have been on the fall over past several years. From a peak of 48,131 tonnes in 1996-97, coffee exports to Russia hit a 10-year low of 26,520 tonnes in 2006-07. The Tea Board officials in Moscow have been urged to help the Coffee Board in understanding the Russian market and carry out promotional activities. Under the market access initiative (MAI), the Coffee Board has been helping exporters like Hindustan Unilever and JKF International by subsidising the promotion of their own brands in Russia.
The Coffee Board plans to undertake regular promotional activities in Russia. The idea is to maintain the country's export balance and be visible with promotional efforts. The Coffee Board has identified four new thrust markets in the US, Japan, Australia and China, where it sees major potential to boost exports. Coffee exports to US stood at 4,185 tonnes in 2006-07, while exports to Japan stood at 4,644 tonnes, Australia at 3,369 tonnes and to China at 794 tonnes.

Guar Seed, Gum Future Surges Due Dry Spell

Mumbai: The dry spell for the last eight days in central and western parts of the country has sent guarseed and guar gum futures surging on NCDEX. The dry weather is hoped to continue for another four to five days. Guarseed for August delivery on NCDEX jumped over 5 per cent to Rs 1,735 per quintal on July 16, from Rs 1,648 on July 9. September deliveries have climbed 5.5 per cent to Rs 1,767 per quintal on July 16 from Rs 1,676 on July 9. However, on July 18, traders preferred to book profits, which resulted in August contracts dropping Rs 9 per quintal to Rs 1,726, while September contracts lost by Rs 12 a quintal to Rs 1,755. Futures of guar gum - a by-product also moved in tandem. Guar gum for August delivery increased 4.30 per cent to Rs 4,432 per quintal from Rs 4,249 on July 9. September deliveries were marked up by 4.72 per cent to Rs 4,520 per quintal from Rs 4,316 on July 9. October contracts remained higher at Rs 4,600 per quintal on July 17. Profit-booking also pulled down guar gum futures by Rs 38 to Rs 4,396 per quintal on July 18, while September deliveries were down by Rs 23 to Rs 4,497. The country's guarseed exports this year are hoped to rise by 47 per cent to 2.20 lakh tonnes. India exports guar gum to the petroleum industry in the US and also to the oil fields in West Asia.

Sheet Rubber Prices Go Up On Short Supply

Kottayam: Falls in leading international markets failed to depress the physical rubber rates, while the futures market lost its steam on July 17. On the global front, the August futures for RSS 3 fell to 249.6 Yen (Rs 82.68 ) from 254.9 Yen a kg at TOCOM. The grade (spot) fell to Rs 83.78 from Rs 84.11 a kg at Bangkok. On the contrary, sheet rubber moved up to Rs 83 from Rs 82 a kg at Kottayam and Kochi driven by short supply. The rubber futures weakened, decreasing the gap between global rates accumulated during the previous few sessions. On NMCE, the August contract fell to Rs 83.25 (84.61), September contract to Rs 81.95 (83.51), October to Rs 82 (83.57) and November contract to Rs 81.29 (82.87) per kg for RSS 4. Spot prices were (Rs/kg): RSS-4: 83 (82); RSS-5: 81 (80); ungraded: 79 (78); ISNR 20: 80.50 (79.50) and latex 60 per cent: 58.40 (58.40).

Pepper Futures Swing Marginally

Kochi: Pepper futures market on July 17, vacillated marginally on bearish activities even as the prices in other origins for Asta grade continued to rule high. International buyers, on the assumption that there won't be any relaxation in the quantitative restrictions on nearby position and consequently the prices would decline, are waiting and watching the Indian market. A positive decision by the regulator on the quantitative restrictions favouring the genuine players would help increase the exports given the price advantage Indian pepper enjoys now. July contract on NCDEX fell by Rs 12 a quintal on July 17 to Rs 14,435. August and September increased by Rs 25 and Rs 36 a quintal respectively, while all the other contracts dropped from Rs 27 to Rs 98 a quintal. On NMCE, August contract moved up by Rs 63 a quintal to close at Rs 14,493 from Rs 14,430, September fell by Rs 20 a quintal while October increased by Rs 41 a quintal. All the contracts remained at previous closing levels. Total turnover on NCDEX dropped by 1,524 tonnes to 16,963 tonnes, while on NMCE it moved up by 377 tonnes to 1,685 tonnes.

Spot Rubber Future Regains

Kottayam: Spot rubber resumed its upward journey on July 16. The market rallied mainly catalysed by domestic supply concerns. Sheet rubber RSS 4 firmed up to Rs 82 from Rs 81 a kg both at Kottayam and Kochi. The market made all-round gains as covering groups remained active around the quoted rates. The rubber futures increased smartly on NMCE. The near month August contract increased to Rs 84.67 (81.94), September to Rs 83.50 (81.84), October to Rs 83.53 (81.87) and November contract to Rs 82.99 (82.93) per kg for RSS 4. The volumes totalled 3,550 (1,466) tonnes. The August contract for RSS 4 increased to Rs 83.75 (81.74) a kg on MCX.RSS 3 (spot) improved by 33 paise to Rs 84.11 a kg at Bangkok. Spot rubber prices were (Rs/kg): RSS-4: 82 (81); RSS-5: 80 (79.50); ungraded: 78 (77); ISNR 20: 79.50 (79) and latex 60 per cent: 58.40 (58.40).

Coonoor Tea Witnesses Low Price

Coonoor: Prices maintained to rule low at the auctions of the Coonoor Tea Trade Association (CTTA) here with the demand being inadequate to absorb the huge volume on offer. About 30 per cent of the 12.49 lakh kg offered went unsold and in most cases, teas could be sold only when the prices shed Rs 2 a kg. The offer was the second largest volume so far for 2007 and some 11,000 kg lower than last week's offer which was the highest so far this year. Purchasers complained of a general decline in quality. Pakistan shippers chose blacker sorts in the range of Rs 36-40 a kg, while CIS purchasers picked up bolder grades for Rs 39-41. There was no buying for any other country. On the corporate front, Hindustan Unilever Ltd (HUL) selected good medium grades.
Duncans bought better medium sorts. JV Gokal operated on fannings. IPL picked up powdery orthodox residuals. Among the CTC teas from bought leaf factories, no tea crossed the Rs 100-level which Darmona Estate had maintained for two months thus far. Among the orthodox teas from the corporate sector, Corsley fetched the highest price of Rs 126 a kg, Havukal and Mailoor Rs 124, Kairbetta Rs 122, Curzon Rs 120, Kodanaad and Tiger Hill Rs 100. Quotations held by the brokers indicted bids ranging from Rs 34-35 a kg for the plain dust grades and Rs 65-80 for the brighter liquoring grades.

Rubber Sees Steady Trend

Kottayam: Spot rubber was firm in the weekend session. RSS 4 closed at Rs 81 a kg both at Kottayam and Kochi as on July 13. The rubber futures weakened on NMCE except for its July contract which expired at Rs 81.20 (80.50) a kg, while the August contract slipped to Rs 81.88 (82.09), September to Rs 81.90 (82.56) and October contract to Rs 81.75 (82.73) per kg for RSS 4. The August contract fell to Rs 81.90 (82.10) a kg on MCX. Spot prices were (Rs/kg): RSS-4: 81 (81); RSS-5: 79.50 (79.50); ungraded: 77 (77); ISNR 20: 79 (79) and latex 60 per cent: 58.40 (58.40).

Pepper Future Declines

Kochi: Pepper futures market during the week fell on bearish activities, while spot prices on July 14, remained at previous weekend closing. Total open interest on NCDEX declined by 273 tonnes during the week to 24,328 tonnes. July and August positions declined by 1,046 tonnes and 1,666 tonnes respectively to 2,265 tonnes and 13,045 tonnes during the weekend. On NMCE, the total open interest during the week declined by 49 tonnes to 2,738 tonnes, while July position dropped by 938 tonnes to 515 tonnes as maturity is nearing. Total turnover during the week on NCDEX increased by 43,467 tonnes to 1,39,320 tonnes, while on NMCE it moved up by 3,279 tonnes to 10,666 tonnes. Indian parity remained fluctuating during the week despite the fundamentals in the world market remained unchanged. Considering the tight supply position in the world market, every decline in the futures here is advantageous for the buyers. Spot prices on July 14, remained at previous weekend closing at Rs 14,000 (un-garbled) and Rs 14,600 (MG 1) a quintal.

Spot Exchange To Be Unveiled

Mumbai: MCX subsidiary National Spot Exchange for Agriculture Produce (NSEAP) is set to unveil the country's first spot exchange on an electronic platform in Gujarat during September. They will commence marketing for membership from July-end and hope to rope in at least 500-600 across the country. Unlike the various categories of membership in MCX, there will be only trading-cum-clearing members in NSEAP. Apart from bringing in much-needed transparency in price discovery, the electronic spot exchange is expected to minimise the role of intermediaries and enhance price realisation for farmers. With the help of the electronic platform, a spinning mill in Coimbatore will be able to place an order for cotton from Gujarat through an NSEAP-approved member. Earlier the company had little option but to call up a broker in Gujarat to get a quote before deciding on purchase.
The platform will enable traders to hold their commodity in demat form by opening an account with National Securities Depository Ltd and Central Depository Services Ltd. The larger the demand, higher the price will be the basis for price discovery. To tackle quality related problems, the exchange will offer premiums and discounts depending on quality of produce on offer. Farmers will also have the option of subjecting their produce for testing before delivery to the warehouse or on delivery and obtain a receipt. To begin with there will be 15 contracts of castor seed, groundnut, jeera, cotton and sesameum for trade.

Rubber Witnesses Up Trend

Kottayam: The physical rubber managed to complete in green on July 13. The spot market still made all-round gains as expected. The rubber futures turned weak on profit booking coupled with fresh selling. The August contract for RSS 4 declined to Rs 81.95 ( 82.40) a kg on MCX. The July contract for the grade weakened to Rs 80.50 (81.07), August contract to Rs 82.10 (82.34), September to Rs 82.51 (83.44) and October contract to Rs 82.79 (83.64) per kg on NMCE. RSS 3 (spot) declined to Rs 83.78 from Rs 84.47 a kg at Bangkok. The August futures for the same grade closed at 254.9 Yen (Rs 84.22 ) against 254.5 Yen a kg at TOCOM. Spot rubber prices were (Rs/kg): RSS-4: 81 (80); RSS-5: 79.50 (78); ungraded: 77 (76); ISNR 20: 79 (77.50) and latex 60 per cent: 58.40 (58.40).

Pepper Future Witnesses Marginal Decline

Kochi: The pepper futures market on July 13, saw marginal decline for want of purchasing support. Besides, they anticipate that the FMC would give some relief to the genuine players-exporters and hedgers, on quantitative restrictions on nearby position at the meeting held in Mumbai. In the international market all other origins remained steady for Asta grade.

July contract on NCDEX fell by Rs 79 a quintal on Friday and closed at Rs 14,610. The fall in other contracts was from Rs 64 to Rs 199 a quintal. On NMCE, July contract fell by Rs 117 a quintal to Rs 14,286. The decline in other contracts was from Rs 16 to Rs 141 a quintal. The total open interest on NCDEX increased by 680 tonnes to 24,704 tonnes, while July position dropped by 217 tonnes to 2,329 tonnes. Total open interest on NMCE dropped by 384 tonnes to 2,730 tonnes, while July position declined by 371 tonnes to 547 tonnes. Spot prices dropped by Rs 100 a quintal on July 13, to close at Rs 14,000 (un-garbled) and Rs 14,600 (MG 1).

Pepper Future Increases

Kochi: The pepper futures market increased on July 12, following reports that good volume has been traded with US as the Indian Asta grade pepper is the cheapest at present in the world market. Indian parity was even three cents above the prices of Brazil, which was offering Asta grade at $3,800 a tonne (f.o.b) while the Indian parity was at $3,700 a tonne (c&f). Availability of Indian pepper at low prices has surfaced the way for good demand coming to the country. Meanwhile, the FMC has convened a meeting of all stakeholders to discuss the quantitative restriction issue on July 13, in Mumbai. July contract on NCDEX on July 12, increased by Rs 565 a quintal to Rs 14,689The increase in other contracts was from Rs 486 to Rs 607 a quintal. In tandem with the upward trend in the futures market spot prices also increased by Rs 400 a quintal on July 12, to close at Rs 14,100 (un-garbled) and Rs 14,700 (MG 1).

Dust Tea At Kochi Auction Witnesses Good Demand

Kochi: Good general demand shored up the price of quality CTC dust tea by Rs 2 to 3 at the Kochi tea auction. Other CTC varieties were firm to dearer while poorer CTC witnessed less demand. Orthodox high grown was dearer while medium varieties remained firm. There was 10.8 lakh kg of dust tea on offer at the auction. Best High grown BOPD ranged between Rs 60 and 108, medium BOPD was between Rs 43 and Rs 46 while secondaries quoted between Rs 30 and 35. Good CTC was dearer by Rs 1. Orthodox grades witnessed good demand from exporters. In the dust segment, Kodanad BOPD commanded the top price at Rs 108, followed by Parkside BOPD at Rs 99, Pasuparai FD at Rs 97 and Shanthi SFD at Rs 91. In the leaf segment, Havukal BOPF got the top price at Rs 136, followed by Havukal FOP at Rs 125, Chamraj FOP at Rs 120 and Chamraj OP at Rs 110.

Rubber Price Increases

Kottayam: The domestic rubber rates increased on July 12. Sheet rubber increased to Rs 80 a kg from Rs 77 in the physical front. The rubber futures extended its gains quoting the August contract at Rs 82.45 (79.29) a kg on MCX. On NMCE, the July contract increased to Rs 81.24 (78.25), August contract to Rs 82.34 (79.18), September to Rs 83.47 ( 80.26) and October to Rs 83.68 (80.47) per kg for RSS 4. The August futures for RSS 3 increased to 254.5 Yen ( Rs 84.65) from 251.7 Yen a kg at TOCOM. The grade (spot) gained by 80 paise to Rs 84.47 a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 80 (77); RSS-5: 78 (75); ungraded: 76 (73); ISNR 20: 77.50 (74.50) and latex 60 per cent: 58.40 (57.90).

Nilgiris Tea Producers Concern Over Floods

Coonoor: The flood situation in Rajasthan, Gujarat and Maharashtra is causing worry to tea producers of the Nilgiris on the eve of the auctions of the Coonoor Tea Trade Association (CTTA) on July 12 and July 13 with a huge volume in catalogue and equally huge volume of unsold teas in the warehouses. There are places where trucks hesitate to go. In some cases, retailers complain that the teas had been spoilt due to dampness. Buyer also complains that the huge volume has come about sacrificing quality. In the prevailing circumstances, we are picking up only quality invoices.

Decrease Input Costs To Enhance Income From Rubber

Kottayam: Any research in agriculture mainly targets at raising the income of the farmers on a permanent basis and based on this the research activities of the Rubber Research Institute of India ( RRII) are given priorities. Income from rubber cultivation could be enhanced only via decreasing the production cost and increasing the productivity. The Common Fund for Commodities (CFC) and International Rubber Research and Development Board jointly selected RRII for the training programme.

Rubber Witnesses Up Trend

Kottayam: Spot rubber made smart gains on renewed purchasing from covering groups and purchase agents. The physical market experienced acute shortage of the raw material as there was neither any arrival to the village markets nor to the main marketing centres. RSS 4 improved further to Rs 77 from Rs 76 a kg both at Kottayam and Kochi. The futures market stayed in tune with the domestic mood on NMCE. The July contract concluded at Rs 78 (76.29), August contract at Rs 79.20 (78.70), September at Rs 80.28 (79.97) and October contract at Rs 80.33 (80.29) per kg for RSS 4. The last traded price for the August contract was Rs 79.30 (78.65) a kg on MCX.

Rubber Prices Regain

Kottayam: Domestic rubber seemed to have regained its strength from the news on falling stock piles and a sharp fall in arrivals. Sheet rubber RSS 4 firmed up to Rs 76 from 75 a kg both at Kottayam and Kochi. The rubber futures stayed in tune with the domestic sentiments and increased further ignoring the global weakness. The July contract on NMCE improved to Rs 76.49 (74.99), August to Rs 78.82 (77.95), September to Rs 80.10 (78.99) and October to Rs 80.40 (79.42) per kg for RSS 4. The August contract finished the session at Rs 79 (78.14) a kg on MCX. Spot prices were (Rs/kg): RSS-4: 76 (75); RSS-5: 74 (73); ungraded: 72 (71); ISNR 20: 73.25 (72) and latex 60 per cent: 57.35 (56.85).

Groundnut Oil Regains On Demand

Mumbai: Groundnut oil regained moderately in a mixed oil and oilseeds market on July 10, on renewed demand from retailers. Groundnut oil recovered by Rs 5 to Rs 755, while refined palmolein eased by Rs 2 to Rs 456. Castorseed bold decline by Rs 10 to Rs 2,025 and castor oil commercial eased to Rs 435 from Rs 437. Linseed oil closed unaltered at Rs 515. In the futures section, castorseed August contract closed at Rs 2,008 against Rs 2,021.

Organic Tea Project Likely To Start This Year

Kolkata: The project to develop organic black tea, with funding from the Amsterdam-based Common Fund for Commodities (CFC), a UN body, is set to start in the current year itself, according to Tea Board sources. Under the project, the Tea Board will get from CFC a sum of $9,00,000 as loan repayable over seven years and another $6,00,000 as grant. The formal pact between the Union Government, which will be the guarantor to the loan, the Tea Board and CFC will be signed during the course of the year.
Three model firms, each of 100 acres, will be set up in Assam (near Tinsukia in Upper Assam), West Bengal (Darjeeling district) and Tamil Nadu (tea growing areas in Annamalais hill range of the Western Ghat). The technical support will be provided by Tocklai tea research station in Assam, Tea Board's research centre in Darjeeling and Upasi Tea Research Foundation in Tamil Nadu. While CFC would charge from the Tea Board at the prevailing LIBOR, the owners of the model firms availing themselves of the funds would be required to cough up a little more. The thrust of the CFC-funded organic black tea project will be to standardise the organic tea growing practices via proper technical support, assess the market and determine the demand to set up its commercial viability and to have a proper certification procedure. Right now, some organic tea is produced in Darjeeling district but, as the sources point out, not in a very systematic way.

AP To Release 100 Tonnes Palm Oil For PDS

Hyderabad: The Civil Supplies Department of Andhra Pradesh has decided to allot 100 tonnes of palm oil for distribution at Rs 46.50 a kg via the PDSand rythu bazaars. This followed a directive by the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, on containing the prices of essential commodities. The department is also procuring onions from Maharashtra.

Spot Rubber Prices Improve

Kottayam: Spot rubber made a moderate come back on July 09. Sheet rubber was quoted better at Rs 75 against Rs 74 and Rs 74.50 a kg respectively at Kottayam and Kochi. The rubber futures extended the gains on NMCE. The delivery month July increased to Rs 74.92 (74.51), August to Rs 78.10 (76.19), September to Rs 79.20 (76.83) and October to Rs 79.58 (77.02) per kg for RSS 4. The transactions totalled 3,543 (939) tonnes. The August contract for RSS 4 was better at Rs 78.33 (76.94) a kg on MCX.The open interest on NMCE was 7,234 (7,012) lots with 2,099 (2,189) lots in July, 2,934 (2,751) lots in August, 1,258 (1,230) lots in September and 943 (842) lots in October. RSS 3 improved at its August futures to 256 Yen (Rs 83.81) from 253.2 Yen a kg at TOCOM. RSS 3 (spot) fell to Rs 82.95 (84.18) a kg at Bangkok. Spot rubber prices were (Rs/kg): RSS-4: 75 (74); RSS-5: 73 (71.50); ungraded: 71 (69.75); ISNR 20: 72 (71) and latex 60 per cent: 56.85 (56.30).

Pepper Futures Down On Pessimistic Activities

Kochi: The pepper futures market on July 9, saw sharp decline on aggressive bearish activities despite the fundamentals in the world market remaining strong. The current bearish trend has resulted in the futures ruling below spot prices. International purchasers were showing interest to purchase but the exporters were said to be not in a position to make any commitment as they fear that they might not be able to cover and the material is not available in spot. July contract on NCDEX on July 09, declined by Rs 388 a quintal to close at Rs 14,271 from Rs 14,659 on last July 7. The decline in other contracts was from Rs 290 to Rs 465 a quintal.
The July contract on NMCE dropped by Rs 405 a quintal to close at Rs 13,911 from Rs 14,316. The total turnover on NCDEX moved up by 4,986 tonnes to 18,085 tonnes, while on NMCE it went up by 450 tonnes to 1,407 tonnes. The total open interest on NCDEX moved up by 69 tonnes to 24,670 tonnes. July position fell by 182 tonnes to 3,129 tonnes, while August declined by 150 tonnes to 14,561 tonnes. September went up by 273 tonnes to 4,028 tonnes. On NMCE the total open interest moved up by 73 tonnes to 2,862 tonnes. Spot prices in tandem with the downward trend in the futures market fell by Rs 200 a quintal to close at Rs 13,800 (un-garbled) and Rs 14,400 (MG 1) on July 10.

Spices Import Sees Substantial Growth

Kochi: Imports of spices in the last fiscal has displayed a significant increase of about 5,000 tonnes in volume and about Rs 65 crore in value from that of the previous financial year mainly because of the competitive prices for most of the items in the world market. The total imports during Apr- Mar 2006-07 stood at 95,405 tonnes valued at Rs 603.87 crore as against 90,412 tonnes worth Rs 539.24 crore in 2005-06. Thus, there was an increase of 4,993 tonnes in volume and Rs 64.63 crore in value. Despite a sharp decline in the unit value of ginger fresh/dry to Rs 11.83 a kg from Rs 19.69 a kg in 2005-06 its imports had dropped to 20,700 tonnes valued at Rs 24.50 crore last fiscal from 23,680 tonnes worth Rs 46.63 crore because of its availability indigenously cheaper.
Meanwhile, the high prices in the world market for cloves have resulted in drop in its imports, which fell to 7,250 tonnes valued at Rs 112.85 crore in 2006-07 from 7,721 tonnes valued at Rs 131.17 crore in the previous fiscal. Imports of pepper, however, have shown a decline last fiscal to 15,750 tonnes valued at Rs 136.42 crore from 16,870 tonnes worth Rs 103.58 crore in 2005-06. Increase in unit value, which surged to Rs 86.62 a kg from Rs 61.40 a kg in 2005-06 and tight supply position in the world market said to have led to the drop in the commodity. Imports of cassia increased to 11,100 tonnes valued at Rs 33.62 crore as against 9,721tonnes valued at Rs 27.63 crore despite an increase in the unit value.

Rubber Witnesses Steady Trend

Kottayam: Spot rubber finished almost unaltered on July 7. Sheet rubber closed firm at Rs 74 a kg at Kottayam. The grade settled higher by 50 paise at Rs 74.50 a kg at Kochi. The rubber futures finished firm on NMCE. The July delivery contract was better at Rs 74.50 (74.29), August at Rs 76.24 (75.99), September at Rs 76.80 (76.27) and October at Rs 77.08 (76.29) per kg for RSS 4. Spot prices were (Rs/k): RSS-4: 74 (74); RSS-5: 71.50 (71.50); ungraded: 69.75 (69); ISNR 20: 71 (71) and latex 60 per cent: 56.30 (56.85).

Kolkata Tea Sale Witnesses Good Demand

Kolkata: Demand continued to be good at Kolkata, Guwahati and Siliguri auction centres during the week ended July 7. Good and top quality CTC teas held levels while the medium and plainer sorts eased in value. The purchasers for the CIS countries operated for exportable brokens while the western Indian purchasers lent support to good liquoring varieties. The maximum price that Assam CTC commanded was Rs 158 per kg. The orthodox teas saw strong inquiries at firm to dear rates, particularly from the West Asia and the CIS countries. The purchasers for the Continent and Japan operated for tippy sorts. The highest price recorded was Rs 885 per kg. The all-India crop up to May stood at 226.4 mkg as compared to 225.8 mkg in the same period of the previous year. Sri Lankan markets remained steady at the Colombo auctions with active Iranian inquiry.

Prices Steady At Kochi Tea Auction

Kochi: Good general demand shored up the price of some dust varieties at the Kochi tea auction, which had 12.77 lakh kg of dust on offer. Good liquoring CTC varieties were firm to dearer by Rs 1-2. Best CTC varieties fetched Rs 54-65, medium CTC was at Rs 48-50 and below medium quoted Rs 37-42. Price of medium orthodox eased by Rs 1-2, fannings and high grown bolder varieties remained steady. Smaller grade eased by Rs 1-3. Best Nilgiri varieties quoted Rs 78-93, medium orthodox was at Rs 44-65 and plain orthodox ranged at Rs 40-44. Best CTC leaf fetched Rs 50-54 and medium CTC was at Rs 42-45.

Tea Board Meet On Rehabilitation Plan For Closed Tea Gardens

Tea Board meet on rehabilitation plan for closed tea gardens Kolkata: The Tea Board will shortly conduct meetings of the owners of the closed tea gardens and their bankers to discuss the rehabilitation package for closed tea gardens during the 11th Plan. The first meeting will be conducted here on July 7 with the owners of the closed gardens in West Bengal and Assam, to be followed by another meeting on July 12 at Kochi with those in South India. The Tea Board Chairman will preside over the meetings. The total number of closed tea gardens is 33 - 17 in Kerala, 14 in West Bengal and two in Assam. The owners of the closed tea gardens, wants to avail themselves of the benefits under the rehabilitation package, have to furnish undertakings, Expressions of Interest, to the Chairman of the Tea Board confirming their commitments to reopen the gardens.
The components of the scheme, prepared by Tea Board on the basis of the rehabilitation package cleared by the Commerce Ministry, comprise restructuring of existing banks loans, waiver of Tea Board loans, damages on the Employees' Provident Fund, extension of facility of term loan for gardens improvement, extension of facility under Quality Upgradation and Product Diversification Scheme and sanction of working capital and the grant

Rubber Witnesses Firm Trend

Kottayam: The physical rubber prices were almost firm on July 6. The only exception was sheet rubber, which decline to Rs 74 a kg from Rs 74.50 and Rs 75 a kg respectively at Kottayam and Kochi. The grade lacked follow up support though opened higher but lost steam towards close on profit booking coupled with fresh selling at higher levels. The rates went up last day purely on speculation even in the absence of technical and fundamental support. On MCX, the near month August contract for RSS 4 fell to Rs 76.57 (78.50) a kg. The July contract for the same grade declined to Rs 74.16 (76.99), August to Rs 76.10 (77.87), September to Rs 76.40 (78.04) and October contract to Rs 76.40 (78.13) per kg on NMCE.
The open interest stood at 6,917 (6,934) lots with 2,195 (2,293) lots in July, 2,694 (2,623) lots in August, 1,205 (1,182) lots in September and 823 (836) lots in October. In the global scenario, RSS 3 weakened at its August futures to 253.2 yen (Rs 83.13) from 256.5 yen a kg at TOCOM. RSS 3 (spot) was almost firm Rs 84.18 (Rs 84.17) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: Rs 74 (Rs 74.50); RSS-5: Rs 71.50 (Rs 71.50); Ungraded: Rs 69 (69); ISNR 20: Rs 71 (Rs 71) and latex 60 per cent: Rs 56.85 (Rs 56.85).

Rubber Price Increases

Kottayam: Spot rubber improved reacting to the Rubber Board Chairman's statement that the Board would protect the growers' interests. Sheet rubber RSS 4 regained to Rs 74.50 and Rs 75 a kg respectively at Kottayam and Kochi from Rs 73 a kg on short covering and fresh purchasing at lower levels. The domestic futures improved further quoting the August contract at Rs 78.50 (75.50) a kg for RSS 4 on MCX. The July contract for the grade went up to Rs 76.99 (74.03), August to Rs 77.87 (74.88), September to Rs 78.04 (75.04) and October to Rs 78.13 (75.13) per kg, while the volumes stood better 3,151 (2,737) lots on NMCE. The open interest was 6,934 (7,025) lots with 2,293 (2,420) lots in July, 2,623 (2,699) lots in August, 1,182 (1,102 ) lots in September and 836 (804) lots in October. Spot prices were (Rs/kg): RSS-4: Rs 74.50 (Rs 73); RSS-5: Rs 71.50 (Rs 70.50); Ungraded: Rs 69 (Rs 68); ISNR 20: Rs 71 (Rs 70.50) and Latex 60%: Rs 56.85 (Rs 55.80).

Pepper Future Witnesses Down Trend

Kochi: Pepper futures remained its downward trend on pessimistic activities and reports that Vietnam was weaker. Vietnam was reportedly offering 500 GL at $3,475-$3,500 a tonne (fob). However, India does not have lower grade pepper and there is good domestic demand for MG 1 at higher rates. They said that there were purchasers for NCDEX delivered pepper at Rs 15,300-Rs 15,375 a quintal on July 5 and 50 tonnes of it is said to have been traded. Besides, exporters and investors were showing interest to buy spot farm grade pepper at Rs 14,400-Rs 14,800 a quintal and about 125 tonnes were reportedly traded. Asta grade pepper at all other origins were firm at higher levels and hence the Indian produce is still very competitive.
Indian exports during January-May (2007 season) was at 10,700 tonnes as against 7,800 tonnes in the same period last year and 5,100 tonnes in 2005. July contract on NCDEX fell by Rs 92 a quintal on July 5, to close at Rs 15,035 from Rs 15,127 on July 4. The drop in other contracts was from Rs 109 to Rs 145 a quintal. The fall in other contracts was from Rs 44 to Rs 87 a quintal. The total turnover on NCDEX increased by 1,664 tonnes to 14,358 tonnes while on NMCE it fell by 140 tonnes to 1,079 tonnes. The total open interest on NCDEX increased by 83 tonnes to 24,695 tonnes while July position declined by 85 tonnes to 3,739 tonnes. August position increased by 123 tonnes to 15,049 tonnes while September moved up by 25 tonnes to 3,243 tonnes. On NMCE, the total open interest increased by 90 tonnes to 2,745 tonnes while July declined by 77 tonnes to 1,540 tonnes.

Oilmeal Exports Slip By 30-Pc

Mumbai: The country's oilmeal exports fell by 30 per cent in June at 153,625 tonnes compared with 219,650 tonnes in the corresponding month last year. The drop was due to a significant decrease in soybean meal and groundnut meal, according to data compiled by the Solvent Extractors' Association of India (SEA). Soybean meal exports witnessed a decline of 25 per cent in June at 424,900 tonnes compared with 565,975 tonnes in the same month last year, while groundnut meal exports toppled by 89 per cent to 4,775 tonnes from 43,100 tonnes. On the contrary, the shipment of castor meal recorded a growth of 185 per cent to 97,225 tonnes from 34,000 tonnes in the period under consideration. On a quarterly basis, however, the exports of oilmeal recorded a 7 per cent decline in the first quarter of the current financial year to settle at 816,600 tonnes compared with 875,200 tonnes in the comparable quarter last year. Vietnam witnessed a quantum jump in import of oilmeals from India at 315,500 tonnes, consisting of 238,500 tonnes of soybean meal, 21,250 tonnes of rapeseed meal and 55,275 tonnes of ricebran extraction. South Korea reported imported 195,775 tonnes of oilmeal from India, making up 110,925 tonnes of rapeseed meal, 72,700 tonnes of castorseed meal and 12,150 tonnes of soybean meal. Japan imported 96,400 tonnes, comprising 93,900 tonnes of soybean meal and 2,500 tonnes of rapeseed meal, while China purchased 65,175 tonnes of rapeseed meal from India during the first quarter of the current financial year. The exports from Kandla were reported at 540,000 tonnes (66 per cent), followed by Mumbai, which handled 115,750 tonnes (14 per cent), Bedi 63,900 tonnes (8 per cent), Kakinada 60,300 tonnes (8 per cent) and Vizag 35,900 tonnes (4 per cent).

Rubber Board will ask farmers to hang on to stocks

Kottayam: The Rubber Board will ask growers to hang on to stocks and also push for more exports via its own companies. The board in connection with this has called a meeting of rubber exporters. There is no need for farmers to panic. Indian farmers having seen the prices at three digit heights are anxious to see the rates reach the Rs 100-mark again. The present situation is only a corrective phase because the supply shortage of rubber is clearly established by international agencies. Production will rise, particularly since farmers will be motivated by high prices. International futures, particularly TOCOM, were very volatilite and among participants in domestic futures, only a minority might be actual purchasers. During the current fiscal, exports are restricted to Rubber Board-sponsored company. Almost 50 per cent of the export is done via this company. Exports have reported a sharp decline compared with last year because of the rupee strengthening against dollar and falling profits. But the very important of all is the role played by a few stockists during last November, December and January when they joined together to foray in the futures and raise the prices artificially above international level by Rs 10. They succeeded in creating an artificial situation.

Rubber witnesses steady trend

Kottayam: Physical rubber ruled almost firm since the futures markets displayed a firm close on July 4. RSS 4 closed flat at Rs 73 a kg both at Kottayam and Kochi after reaching an intra day low at Rs 72.50 a kg in the morning session. The rubber futures showed a better trend on NMCE. The July contract settled higher at Rs 74 (73.46), August at Rs 74.90 (74.32), September at Rs 75.10 (74.35) and October at Rs 75.05 (74.37) per kg for RSS 4. The transactions totalled 2,737 (2,582 ) tonnes. The open interest was 7,025 (6,926) lots with 2,420 (2,464) lots in July, 2,699 (2,641) lots in August, 1,102 (1,057) lots in September and 804 (764) lots in October. Spot prices were (Rs/kg): RSS-4: 73 (73); RSS-5: 70.50 (70.50); ungraded: 68 (69); ISNR 20: 70.50 (70.50) and latex 60 per cent: 55.80 (55.80).

Rubber Witnesses Down Trend

Kottayam:L Spot rubber declined on July 3. RSS 4 fell to Rs 73 from Rs 74 a kg at Kottayam and Kochi. There was no visible demand for any grade and hence most of the sellers seemed to be panic. The rubber futures resumed the down trend quoting the August contract at Rs 75 (75.42 ) a kg on MCX. The July contract for RSS 4 ended at Rs 73.50 (73.99), August at Rs 74.48 (74.89), September at Rs 74.50 (74.81) and October contract at Rs 74.49 (74.79) per kg on NMCE. The transactions were 2,582 (2,822 ) lots. Spot prices were (Rs/kg): RSS-4: 73 (74); RSS-5: 70.50 (72.75); ungraded: 69 (70); ISNR 20: 70.50 (72.25) and latex 60 per cent: 55.80 (56.85).

Pepper Future Falls

Kochi: Pepper futures declined on July 3, on reports of decline in Vietnam prices and lack of purchasing support. Bearish activities also said to have contributed to the decline. Indian prices for this grade remained competitive. There was no selling pressure in the primary markets and hence spot prices ruled firm at previous levels. July contract on NCDEX on Tuesday declined by Rs 69 a quintal to Rs 15,173. On NMCE, July contract declined by Rs 195 a quintal to Rs14,700. The decline in other contracts was from Rs 125 to Rs 168 a quintal. Spot prices ruled firm on July 3, at Rs 14,200 (un-garbled) and Rs 14,800 (MG 1).

Coonoor Tea Prices Decline

Coonoor: Prices declined by Rs 3 a kg on an average at the sale No. 25 of the auctions of Coonoor Tea Trade Association (CTTA) held here on June 30, as the demand was inadequate to absorb the huge volume at high bids. The bottom level dipped to a new low of Rs 35 a kg. The volume of 12.43 lakh kg offered is the highest so far this year. It is 1.34 lakh kg more than the offer last week. The volume is increasing week-after-week. Most teas could be sold only when the prices shed Rs 3 a kg. CTC leaf medium teas lost Rs 2 to 3 a kg. Sizable volumes were withdrawn for want of adequate bids. Plainer sorts suffered from poor demand and lost more than Rs 3 a kg when sold. Most CTC dusts eased up to Rs 2 a kg. Better medium dusts shed more than Rs 4 a kg.

Rubber Sees Weak Trend

Kottayam: The domestic rubber rates displayed a weak trend shedding Saturday's speculative gains on July 2. On the physical front, sheet rubber fell back to Rs 74 a kg from Rs 75 and Rs 74.50 a kg respectively at Kottayam and Kochi on selling from both traders and growers. In futures, the July contract for RSS 4 declined to Rs 74 (75.97), August contract to Rs 74.90 (76.98), September contract to Rs 74.80 (76.94) and October contract to Rs 74.70 (77.04) per kg on NMCE, while the August contract declined to Rs 75.25 (77.66) a kg on MCX. The August contract for RSS 3 declined to 252.2Yen (Rs 83.65) from 256.2 Yen a kg at TOCOM futures. The grade fell by 138 paise to Rs 86.60 from Rs 87.98 a kg at Bangkok spot. Spot prices were (Rs/kg): RSS-4: 74 (75); RSS-5: 72.75 (73); ungraded: 70 (70.50); ISNR 20: 72.25 (72.50) and latex 60 per cent: 56.85 (56.85).

Pepper Future Increases

Kochi: The pepper futures market saw marginal rise on July 2,on reports of upward trend in other origins such as Vietnam and Indonesia. It was offering 500 GL at $3,530 a tonnes (f.o.b.) and 550 GL at $3,750 (f.o.b.).V Asta was quoted at $4,130 (f.o.b.). Meanwhile, in Indonesia, Lampong Asta was being offered at $4,050-4,100 (f.o.b.). The Indian produce continues to be competitive in the world market. Exporters were covering from exchanges. On July 2, the July contract on NCDEX increased by Rs 14 a quintal to Rs 15,230. The increase in other contracts was between Rs 31 and Rs 79 a quintal. The other contracts increased by Rs 42-58 a quintal. On the NMCE, the total open interest declined by 39 tonnes to 2,780 tonnes. The July position declined by 48 tonnes to 1,738 tonnes. Spot prices on tight supply ruled firm on July 2, at last weekend close of Rs 14,200 (un-garbled) and Rs 14,800 (MG 1).

Rubber Futures Not Profited Growers

Kochi: The Cochin Rubber Merchants Association has said that the growers, for whose benefit futures trading was introduced, are at the getting end and have suffered heavily on account of futures. They once again strongly appeal to the Forward Markets Commission to permit futures trade in rubber only to the holders of Rubber Board licence and also direct the exchanges to be transparent in their deals and make available the names of the buyer & seller, the quantity and price at which rubber is traded and period of contract concluded and also put a cap on daily fluctuations of a maximum two per cent.
The FMC's directive to the commodity exchanges to limit the daily fluctuations to 4 per cent instead of the existing level of 6 per cent could not act as a deterrent to the deep malaise set in the rubber futures trade by speculators. If a total ban on rubber futures trading could be enforced, at least the limit for daily fluctuation shall be restrained to 1 per cent at the first instance and subsequently to another 1 per cent cap after a reasonable cooling off period. Since the advent of futures trading, average prices of Indian rubber started reporting a declining trend year-after-year, and in 2006-2007, it was lower by Rs 5.75 per kg than international price. As of now, the price difference is over Rs 12 per kg. The futures prices in the last six months fell down by Rs 24 per kg, which has had an adverse impact on the ready market which fell by Rs 22 per kg.

Pepper Witnesses Up Trend

Kochi: Pepper futures market during the week saw an upward swing on purchasing support and firm prices of other origins. All contracts on NCDEX and NMCE increased by Rs 245 to Rs 431 and Rs 310 to Rs 438 a quintal respectively. Spot prices also in tandem with the futures market trend and short supply increased by Rs 400 a quintal during the week. Total turnover on NCDEX dropped by 13,959 tonnes, while on NMCE it decline by 1,781 tonnes. August position increased by 1,001 tonnes to 14,659 tonnes. In the international market, all the origins were showing firmness smelling a tight supply position.
Besides, the world production projection for 2007 showed a drop of 25-30 per cent over the previous year and as a result other producing countries had quoted higher prices this year so far. Indian prices have been moving up on strong fundamentals and not on speculations. According to the International Pepper Community report for the week, there was an improvement in the domestic market of black pepper in the country. In Vietnam, the market also showed some activities and prices were reported to have increased significantly.

CTC Teas Witnesses Good Demand

Kolkata: There was a good demand for CTC teas in all three North India tea auction centres at Kolkata, Guwahati and Siliguri in the week ended June 30. Good Assam CTC remained a strong feature seeing good support from western India markets. Medium Assams were barely steady. The highest price for Assam CTC was Rs 144. Orthodox teas saw strong enquiry at firm rates with selected tippy and liquoring sorts realising attractive prices. Darjeeling offerings saw good demand with prices following quality. Crops in North India, which had a promising start in the beginning of June, declined in the later half following inclement weather. Indian exports from January to April this year totalled 53 mkg as compared to 53.7 mkg in the same period last year.