Rubber Steady Trend - Aug 30 , 2008

Kottayam; Rubber prices turned firm on Aug 29. RSS 4 closed firm at Rs 142 a kg though the international indices ened in green. The fresh quote from the tyre sector was slightly lower at Rs 141 a kg for sheet rubber. It is hoped that the present situation would change once the production picks ups shortly. Spot prices were (Rs/kg): RSS-4: 142 (142); RSS-5: 139 (139); ungraded: 134 (134); ISNR 20: 132.50 (132.50) and latex 60 per cent: 81.50 (81.50).

Pepper Futures Fell -Aug 30 , 2008

Kochi: Pepper futures market declined on Aug 29 on pessimistic operations and the September contract declined below the spot prices. September contract fell by Rs 115 a quintal to close at Rs 13,943, much below the spot price of Rs 14,200 of MG 1. The decline in other contracts was from Rs 38 to Rs 117 a quintal on NCDEX. Total turnover increased by 1,920 tonnes to 5,903 tonnes while total open interest fell by 232 tonnes to 19,874 tonnes. September declined by 444 tonnes while October and November moved up by 147 tonnes and 55 tonnes respectively.

Exporters were also jumping away from taking delivery because of fear of the quality of the material. In fact, at a meeting organized by the FMC in Bangalore early this week, dealers and farmers of sugar, pepper and rubber and some chamber of commerce people asked the Regulator to introduce some mechanism to arrest this manipulation of the market apart from putting in some fool-proof mechanism to ensure quality of the material delivered. Purchasers in the overseas markets are also loosing confidence in the futures market.

Tea Exports To Iraq - Aug 30 , 2008

Coimbatore: After a brief lull, tea exports to Iraq are reported to have restarted this week. The volumes were not substantial, but were hoped to increase in due course. A glance at the volumes traded in the Coimbatore auction centre show that both the quantities traded and the rates have moved up compared to the corresponding period of the previous year. The volumes traded for the six months ended June 2008 increased to 14.1 million kg against 11.38 million kg last year. Teas worth around Rs 25-30 crore was still not cleared at the other end. Most of the importing countries are purchasing multi-origin teas and blending them

FMC Optimistic On Commodities Futures Ban Lifting - August 29 , 2008

The Forward Markets Commission (FMC) is expecting the Central Government to do away with the ban on futures trading on four commodities next month. In May, the government had suspended futures trading in soyoil, potato, rubber and chickpea for four months, to control the soaring inflation. FMC had convened a meeting of representatives of trade and manufacturers associations, chambers of commerce and industry, marketing federations and co-operatives, in Bangalore on August 28.

Pepper Futures Market Saw High Volatility - Aug 29 , 2008

Kochi: Pepper futures market saw high volatility on Aug 28 and moved slightly up. September contract increased by Rs 24 a quintal to Rs 14,055 while October and November increased by Rs 25 and Rs 21 respectively to Rs 14,355 and Rs 14,600 a quintal. Total turnover fell by 2,740 tonnes to 3,983 tonnes, while total open interest fell by 4 tonne to 20,106 tonned.

In the world market the availability is likely to be limited in the coming months and till the next Vietnam crop arrives in the market in Mar/Apr 2009. The Brazilian crop is likely to be around 35,000 tonnes. Indian parity is $3,475 tonne (c&f) for Europe and $3,525 a tonne (c&f) for the US. Overseas purchasers were reported to have been inactive probably because of weaker advices from Brazil and Ecuador. E Asta was cited 3,250 a tonne c&f US. Brazil Asta was reportedly traded at $2,900 (f.o.b.). Vietnam has quoted 500 GL and 550 GL at $2,850 and $3,025 a tonne respectively (fob) HCMC. Vietnam white pepper was offered at $4,415 a tonne (f.o.b.).

Rubber Prices Witness A New Record - Aug 29 , 2008

On August 28, due to speculative holding back of stocks by sellers and firm overseas cues from key Asian markets like Tokyo and Bangkok, the spot rubber prices went up. And the benchmark RSS-4 grade has touched a new record high of Rs 142 a kg.

The previous high for RSS-4 grade was Rs 141.50 on August 1. Although the board had placed the price of the commodity at Rs 141.50 for that day, most traders said they sold the commodity at Rs 142 then. Overall supply of the commodity is weak due to growers holding back stocks as well as production in August being disrupted by rains in growing areas of Kerala.

Guar Seed Production Likely To Reach 1.01 Crore Bags - 28 Aug 08

Chennai: With the growing areas in Rajasthan getting good rainfall, guar seed output in the country is likely to reach 1.01 crore bags (of 100 kg). Rains were good in the whole Rajasthan belt. Output could be at least 70 lakh bags in Rajasthan. Haryana is likely to witnesses a output of 30 lakh bags, while the rest is hoped to come from Madhya Pradesh, Gujarat and Uttar Pradesh. Guar or cluster beans is a legume crop that grows best in the semi-arid regions in the country. India is the major producer of guar seed and gum, making up 80-85 per cent of the total global supply.

If the output is good, then the market could decline from the current level. Guar prices could fell by Rs 100 a quintal. Currently, guar seed is quoting at Rs 1,748.15 a quintal in Jodhpur. In the futures market, guar seed September contract is ruling at Rs 1,756 a quintal, while October contract at Rs 1,801. The prices are lower than it were during mid-July when guar seed for September contract was quoted at Rs 1,991 a quintal and spot prices ruled at Rs 1,876 in Jodhpur.

Pepper Futures End Marginally Higher - 28 Aug 08

Kochi: Pepper futures market after saw high volatility on Aug 27 closed marginally higher. On NCDEX, September contract increased by Rs 40 a quintal to close at Rs 14,016, far below the MG 1 spot price of Rs 14,200 a quintal. The increase in other contracts except February was from Rs 24 to Rs 58 a quintal. Total turn over fell by 947 tonnes to 6,733 tonnes while total open interest fall by 19 tonnes to 20,110 tonnes. September and November open interest declined by 411 tonnes and 13 tonnes respectively while October moved up by 351 tonnes. Indonesia was looking for their new crop to arrive. Brazil was lower because of a strong dollar and offering B Asta at $2,975 a tonne (fob). B1 was cited at $2,850 at tonne (fob) and B2 at $2,750 a tonne (fob). Vietnam cited FAQ 500 GL at $2,750 a tonne (fob) and 550 GL at $2,900 a tonne (fob). L Asta was reportedly quoted at $3,500-3,600 a tonne in the US.

Rubber Price Increases - 28 Aug 08

Kottayam: Spot rubber price improved on Aug 27. RSS 4 crossed higher the magical level of Rs 140 to settle firm at Rs 141 (Rs 139) a kg on better demand. Supply worries dominated the market mood and covering groups continued extremely aggressive on the grade during the session. The transactions were low. Spot prices were (Rs/kg): RSS-4: 141 (139); RSS-5: 137 (135); ungraded: 132 (130); ISNR 20: 134 (131) and latex 60 per cent: 81.50 (81).

Rubber Sees Steady Trend - August 23 , 2008

Kottayam: Spot rubber remained to rule firm on Aug 22. RSS 4 ended unaltered at Rs 137 a kg as on Aug 21. The tyre sector kept their quotes even below at Rs 136.50 a kg during the session possibly to avoid another bull run amidst short supply. The grade (spot) increased further to Rs 124.11 (123.21) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 137 (137); RSS-5: 134.50 (134.50); ungraded: 128 (128); ISNR 20: 131.50 (131.50) and latex 60 per cent: 81 (81).

Coonoor Tea Auction - Aug 20 , 2008

Coonoor: Producers who sold their teas via the 31 auctions conducted by Coonoor Tea Trade Association (CTTA) in the first half of this year got Rs 82.25 crore more than in the same period last year. An analysis of the market reports shows that this happened because a higher volume was sold for a higher price. Overall earnings Consequently, the overall earnings increased to Rs 174.19 crore (Rs 91.94 crore), marking an increase of 89.46 per cent. Prices of orthodox teas moved up by Rs 4 a kg to average at Rs 61.02. A volume of 2.04 million kgs was sold, against 1.76 million kgs last year. Prices of CTC teas increased by Rs 12 a kg to average Rs 57.44. A volume of 2.82 crore kgs (1.82 crore kgs) was sold.

Pepper Futures Mkt Decline - Aug 20 , 2008

Kochi: Pepper futures market fell on Aug 19 on pessimistic activities. August contract fell by Rs 156 to Rs 14,010, below the spot rates for MG 1. The fall in other contracts was from Rs123 to Rs201 a quintal. In fact, exchange pepper was available cheaper. The NCDEX is said to be holding a stock of around 5,700 tonnes now. Total turnover on NCDEX fell by 1,655 tonnes to 6,598 tonnes. Total open interest also declined by 192 tonnes to 20,486 tonnes. The open interest for August declined by 1,685 tonnes, while that of September declined by 16 tonnes. October increased by 121 tonnes. Spot prices in tandem with the futures market trend fell by Rs 100 a quintal to close at Rs 13,700 (un-garbled) and Rs 14,300 a tonne (MG 1) on Aug 19. Indian parity for US was at $3,625 a tonne (c&f) while for Europe it was $3,550 a tonne (c&f). V Asta was quoted at $3,450 a tonne (f.o.b) while 550 GL at $3,050 a tonne (f.o.b).

Rubber Price Declines - Aug 20 , 2008

Kottayam: Rubber rates declined further on Aug 19. RSS 4 fell to Rs 137 from Rs 137.75 a kg on buyer resistance. Major manufacturers remained inactive hopes the prices to cool down reducing the gap between the domestic and global rates. Spot prices were (Rs/kg): RSS-4: 137 (137.75); RSS-5: 134.50 (135); ungraded: 128 (129); ISNR 20: 131.50 (131.50) and latex 60 per cent: 81 (82).

Pepper Futures Market Sees High Volatility - Aug 19 , 2008

Kochi: The pepper futures market on Aug 18 saw high volatility and closed by and large steady. There have been variations without any connection to spot availability. Domestic purchasers adopted a wait and watch approach despite good demand, because of the high volatility in the prices.

There was no selling pressure. August contract fell marginally by Rs 12 to Rs 14,160 a quintal, while September and October increased by Rs 10 and Rs 33 to Rs 14,510 and Rs 14,831 a quintal respectively. The increase in November, December and January was from Rs 42 to Rs 52, while February was down by Rs 25 a quintal. Total turnover increased by 2,534 tonnes to 8,253 on NCDEX, while total net open position declined by 142 tonnes to 20,678 tonnes. B Asta was sold at $3,170 c&f Rotterdam. Vietnam 500 GL was quoted at $2,780-2,800 a tonne (fob); 550 GL at $2950-2970 a tonne (fob) and V Asta at $3,200 a tonne (fob).

There is a feeling in the market that coverage, at present, may be difficult in the coming days given the tight supply position. Spot prices ruled firm at last weekend close of Rs 13,800(un-garbled) and Rs 14,400 (MG 1) a quintal on Aug 18.

Auctions Of Coonoor Tea Trade Association - Aug 19 , 2008

Coonoor: Pakistan, which was the backbone of the CTC leaf market at the auctions of Coonoor Tea Trade Association (CTTA) for a few months now, decreased its buys at Sale No: 33 this week in the backdrop of Tea Board's exposure of alleged adulteration in a Nilgiri factory in teas for shipment to Pakistan. CIS purchased bolder varieties in the range of Rs 61 to 70 a kg. Egypt purchased medium CTC dusts for up to Rs 64. Teas for European ports were purchased for up to Rs 72. Kenya purchased CTC medium smaller dusts for up to Rs 65.

Kharif Crops, Barring Rice And Soyabean Area Coveres - Aug 19 , 2008

New Delhi: Area covered under all major kharif crops, barring rice and soyabean, remain to lag behind last year's levels, notwithstanding a revival of the south-west monsoon since the last week of July. The Agriculture Ministry's latest data on sowing progress, released here on Aug 18, shows total area covered under coarse cereals so far this year at 171.1 lakh hectares (lh), which is below last year's corresponding 194.1 lh. Planting of pulses, too, are lower (89.8 lh versus 105.7 lh), which includes arhar (from 33.8 to 29.5), urad (from 23.2 to 18.6) and moong (29.3 to 21.9). In the case of oilseeds, the overall progressive acreage has declined slightly from 164.5 lh to 163.9 lh, with groundnut declining (50 to 48.1) and soybean gaining (86 to 92.8).

Rubber Prices Sees Weak Trend - Aug 18 , 2008

Kottayam: Physical rubber prices displayed a weak trend on Aug 16. RSS 4 fell to Rs 139 from Rs 140 a kg on purchaser resistance while most of the grades registered moderate losses during the weekend session. Spot prices were (Rs/kg): RSS-4: 139 (140); RSS-5: 136 (136.50); ungraded: 130 (130); ISNR 20: 133 (134) and latex 60 per cent: 83 (85).

Pepper Demand Increase From Next Month In The World Market - Aug 18 , 2008

Kochi: Demand for pepper in the world market is hoped to increase from next month once the purchasers come back from the summer holidays. The grinding industry will also begin purchasing for the winter demand and the festival season is already around the corner.

The futures market on Aug 16 saw a downward trend on pessimistic activities and the consequent selling pressure in tandem with the trend in other commodities apart from reports from Brazil that there were 48 detentions of Indian pepper consignments by the US FDA during the past 12 months

India has been sending out wrong signals because of the high volatility in the market due to highly speculative activities by the bulls and bear operators. International market is firm and all the other origins are providing below the Indian parity. Indonesia, because of the projected small crop appears to have decreased it's selling of light berries.

Kolkata Sale Sees Strong For CTC Teas - Aug 18 , 2008

Kolkata: Last week, CTC teas once again saw strong demand at firm to occasionally dearer rates, particularly for dust teas, in North Indian auction centres at Kolkata, Guwahati and Siliguri. The major blender was active while there was fair support from Tata Tea and other packeteers. Darjeeling whole leaf and brokens sold readily at lower levels while fannings sold irregularly around last. In the orthodox sale, few tippy teas on offer sold at around last levels while the remainder tended firm and at times dearer. North India purchasers were selective while local purchasers operated on the fannings.

Cardamom Rates Fall - Aug 14 , 2008

Kochi: The cardamom prices have saw a falling trend last week at auctions held in Kerala and Tamil Nadu on increased arrivals. The average price fell to Rs 580 a kg last week from Rs 600 in the previous week. The average price on Aug 11, the first day of the current week, at the Cardamom Planters' Association (CPA) auction held in Bodinayakkanur, also fell to Rs 561 a kg from the Aug 10 average of Rs 580. The total arrivals here stood at nine tonnes and the entire quantity was sold. The market has shown a falling trend. The purchasers now anticipate the crop to be better in the coming days as the growing areas have started receiving good rains.

Pepper Futures To Touch Rs 14,000 - Aug 14 , 2008

Kochi: The pepper futures market on Aug 13 increased on optimistic activities. August contract increased by Rs 78 a quintal to close at Rs 14,000, still Rs 300 below the spot price for MG 1. The increase in other contracts was from Rs 75 to Rs 122 a quintal. Total turnover on NCDEX declined by 1,505 tonnes to close at 6,173 tonnes while the total open interest fell by 292 tonnes to 20,211 tonnes. Purchasers from the domestic market were waiting for the investors to sell their validity expired goods as it was available Rs 300 below the spot prices. Spot prices were firm at the previous level of Rs 13,700 a quintal for un-garbled and Rs 14,300 a quintal for MG 1 on Aug 13.

Coonoor Tea Auctions To See Low Volume - Aug 14 , 2008

Coonoor: An analysis of the catalogues of various brokers' shows that volume offered for sale No: 33 of the auctions of Coonoor Tea Trade Association (CTTA) concluding on Aug 14 totals 11.22 lakh kg. There will be no auction on Aug 15 because of the Independence Day. This is the lowest volume of the last 18 weeks excepting April 24 when the volume was 11.08 lakh kg. This week's volume is lower than last week's offer by as much as 1.33 lakh kg. Fresh arrivals remain to be high. Of the 11.22 lakh kg, fresh arrivals total as much as 11.03 lakh kg. The balance comprises teas continuing unsold in previous auctions. Again, as much as 10.67 lakh kg belong to CTC variety and only 0.55 lakh kg, orthodox variety. In the leaf counter, only 0.21 lakh kg belong to orthodox while 7.78 lakh kg, CTC.

NCDEX Castor Rises - August 13 , 2008

Castor Seed futures are trading higher today, paring yesterday’s steep losses as the strong fundamentals in the commodity came to the rescue of the commodity. A drop in the acreage of the commodity in the ongoing khariff season had boosted the commodity in late July though the first half of August ahs witnessed a dominance of profit booking activities.

The sentiments remained similar yesterday and NCDEX September futures were pulled to a low of Rs 608 – its lowest level in last one month before a rebound of sorts was witnessed in the last few hours of the trade.

The counter continued its recovery in early moves today, pushing up even as traders continued to cut longs in near month. The benchmark futures trade up Rs 0.90 to Rs 613.70 right now, after having surged to a high of Rs 617 earlier in the day. We may expect the recovery to continue ahead of the release of the latest khariff sowing update and some buying can be expected to emerge in the September contract in dips.

Pepper Futures Increase - Aug 13 , 2008

Kochi: Pepper futures market on Aug 12 increased on speculative activities by the bulls. August contract increased by Rs 89 a quintal while the increase in other contracts was from Rs 43 to Rs 102 a quintal from the closing price of Aug 11. However, January fell by Rs 51 a quintal.Total turn over increased by 1,912 tonnes on NCDEX to close at 7,678 tonnes while the net open position declined by 67 tonnes to close at 20,503 tonnes. August and September positions fell by 405 tonnes and 85 tonnes respectively while October moved up by 112 tonnes. Spot prices ruled frim at Rs 13,700 (un-garbled) and Rs 14,300 (MG 1) a quintal on Aug 12. There was no selling pressure for the spot pepper.

In the global market, easier trend continued in Brazil and Vietnam. The purchasers in Europe and US are on holidays while because of the slow economic activity dealers were keeping inventory only for two weeks and not for 6-7 weeks like in the past. The prices on Aug 12 for different origins C&F New York were MG1 L ASTA - $3,700-3,750 a tonne;V ASTA - $3,525-3,575 a tonne; B ASTA - $3,025-3,050 a tonne FOB; Vietnam White was quoted at $4,850-4,900 a tonne while Muntok Whiteat $4,950-5,000 a tonne (c&f).

Rubber Rate Increases - Aug 13 , 2008

Kottayam: Rubber prices displayed a better trend on Aug 12. Sheet rubber RSS 4 increased to Rs 137.50 from Rs 136.50 a kg both at Kottayam and Kochi. Purchasers were chasing the sparse arrivals to fulfil their earlier commitments even at Rs 12 above the global rates. Spot prices were (Rs/kg): RSS-4: 137.50 (136.50); RSS-5: 135 (132); ungraded: 128.50 (126.50); ISNR 20: 132.25 (131) and latex 60 per cent: 83.50 (83).

Pepper Futures Decline On Pessimistic Speculative Activities - Aug 12 , 2008

Kochi: Pepper futures market on Aug 11, traded easier on pessimistic speculative activities. August contract declined by Rs 89 a quintal to close at Rs 13,820, while September declined by Rs 78 to close at Rs 14,090 and October by Rs 101 a quintal to close at Rs 14,382 on Aug 11, on NCDEX. Total volume increased by 2,096 tonne to 5,766 tonne, while net open position moved up by 158 to 20,570 tonne. The pessimistic sentiment is due to a possible reduction in import duties from Asean countries. However, a strong rupee against dollar has kept the Indian parity above all other origins at $3,500-3,550 a tonne (c&f). Domestic demand remained to show strength on account of the ensuing festival season.

India Witnessed The Export Of 87.4 Million Kg Of Tea - Aug 11 , 2008

Kolkata: Between January and June, India witnessed the export of 87.4 million kg (mkg) of tea (44.7 mkg North Indian and 42.7 mkg South Indian varieties), rise by 10.4 mkg over the same period of 2007, when exports were to the tune of 77 mkg, comprising 38.2 mkg of North Indian and 38.8 mkg of South Indian varieties, according to statistics released by the Indian Tea Association (ITA).

The earnings from exports in first six months, at Rs 883.32 crore, showed an increase of Rs 116.57 crore over Rs 766.75 crore earned in the same period of last year.

Between April and June (first quarter of the current fiscal), tea exports were 36.5 mkg (14.4 mkg of North India and 22.1 mkg of South Indian varieties) compared with 32.6 mkg (15.3 mkg of North Indian and 17.3 mkg of South Indian varieties), or up by 3.9 mkg. Between January and May, ITA figures suggest, the country imported 6.56 mkg of tea worth Rs 46.74 crore compared with 4.89 mkg worth Rs 36.72 crore in the same period of 2007.

Nepal supplied 2.12 mkg (1.27 mkg in the same period last year), Indonesia 1.44 mkg (0.88 mkg), Kenya 1.24 mkg (1.11 mkg), China 0.36 mkg (0.28 mkg) and Argentina 0.35 mkg (0.37 mkg).

Contracted About 2.8 Lakh Tonnes Of Imported Edible Oils - Aug 11 , 20008

State-owned trading firms have contracted about 2.8 lakh tonnes of imported edible oils till date for distribution through ration shops, with an aim to provide relief to consumers from rising prices. MMTC, STC, PEC and cooperative major NAFED are importing edible oils on behalf of the Centre, which has launched a scheme to distribute 10 lakh tonnes of cooking oils through public distribution system at a subsidy of Rs 15 per kg.

As of now 40,000 tonnes of edible oils have been given to various states at subsidised rates for distribution to the ration card holders. As much as 39,196 tonnes have been packed in pouches and 37,000 tonnes have been handed over to various states as per their demand. The Centre has asked these agencies to import 10 lakh tonnes of edible oils during 2008-09 fiscal and a subsidy of Rs 1,500 crore has been earmarked for this purpose. A monthly allocation of 93,400 tonnes of edible oils has been made to 24 States and Union Territories to implement this scheme, aimed at giving relief to the common man who has had to bear with nearly 12 per cent inflation. Andhra Pradesh has been allocated 20,750 tonnes of RBD palmolein oil, followed by Maharashtra 18,200 tonnes and Tamil Nadu 15,500 tonnes. Under the scheme, which was launched by Food Minister Sharad Pawar in Hyderabad on July 28, one kg of cooking oil will be provided per month to each family covered under the Below Poverty Line (BPL) and Antyoday Anna Yojna (AAY) schemes.

Cotton Crop Of About 45 Million bales - Aug 11 , 2008

India is expected to achieve a significant increase in average yield and increased cotton crop of about 45 million bales by FY 12, a top industry official said. "The country should be able to achieve higher average yield and increase in cotton crop production of about 45 million bales by FY 12," Cotton Association of India (CAI) Chairman P D Patodia said. India presently produces 31.5 million bales of 170 kg each which constitutes 20 per cent of the world cotton production. Cotton cultivation is widespread, spanning across 10 different cotton-growing states having diverse agro-climatic conditions.

India has the largest area of 9.5 million hectares under cotton cutlivation in the world constituting 29 per cent of the total world cotton area. Cotton production in India has almost doubled in the last four years with productivity significantly going up from 398 kg per hectares in FY 04 to 560 kg per hectare in FY 08. The increase in production was due to sustained developmental efforts taken by Technology Mission on Cotton, Cotton Corporation of India and various cotton and textile bodies.

Merrill Lynch Transfer Of Its 5% Stake In MCX - Aug 09 , 2008

NEW DELHI: Merrill Lynch is transferring half of its 5% stake in Multi Commodity Exchange (MCX) to a separate entity, Valley Energy. The US financial services giant had picked 5% in MCX for Rs 205 crore in September 2007. This was a pre-IPO placement for MCX, which filed its draft prospectus for public float in February this year.

The US financial services firm is now in the process of transferring half of its stake in MCX to a recently-formed subsidiary in Mauritius, Valley Energy, an affiliate of Merrill Lynch Holdings (Mauritius). Valley Energy will hold 2.5% in MCX as part of this transaction. Its holding will, however, come down to 2.25% after the proposed IPO.

It is learnt that Merrill Lynch has applied for FIPB’s green light before MCX proposed the IPO. This is because if the proposal for transfer of shares to Valley Energy is not cleared before the allotment of shares under the IPO, the US firm won’t be able to do so for another year as it would have to comply with the share ‘lock-in’ clause.

The transaction is seen as a result of norms set for foreign investment in Indian commodity exchanges. Earlier this year, the government had allowed foreign investment up to 49% in commodity exchanges, out of which FII investment would be 23%. The norms had the clause that no single entity would hold more than 5% in the commodity exchange.

Merrill Lynch had invested in MCX through the FDI route. After the transaction, the equity stake held by Valley Energy will also be treated as FDI.

As per Sebi guidelines, shareholders who hold shares in a company before its goes public cannot sell them for a year from the date of allotment of shares in the IPO. This basically means these ‘locked-in’ shares cannot be bought or sold for one year.

Turmeric Contracts Technically In Oversold Zone - Aug 09 , 2008

The Turmeric futures extended the previous sessions loss on the long position liquidation influenced by the favorable weather in the major growing areas. The NCDEX Turmeric futures benchmark October contract, which touched the lower circuit on Thursday, drifted lower further nearly Rs 81 or 1.99% to the session’s low of Rs 3990 per quintal. The counter currently doing the business at the sessions low and the open interest in the contract decreased 0.98% to 23090 lots, indicating long position liquidation. The contract slumped more than 24% from the contract high of Rs 5267 per quintal as on 19-07-08.

Technically the prices are hovering far below the short term and long term EMA’s, indicating short term and long-term trend remains bearish. The MACD entered in the bearish zone, it also supporting the weakness. The RSI entered in the oversold zone, the 14 day RSI currently hovering at 24.71, indicating the contract is in the oversold zone.

Global Coffee Prices Are To Rule Firm - Aug 09 , 2008

Kochi: The global coffee supply position next year may not outweigh the demand and in such a situation, most likely to happen according to trade sources, the Prices are to rule firm in the next coffee year also. Despite the projection of a good crop in 2008-09 in Brazil, the world's top producer, which drives the world coffee price, the rates are ruling firm at moderate levels. The consumption of coffee in the world is growing at two per cent a year while in India it is estimated 8-10 per cent.

The total Indian output in 2008-09 is estimated at 2.93 lakh tonne as against 2.62 lakh tonne in 2007-08. The increase in the Indian production is insignificant given the growth in consumption in the country.According to International Coffee Organisation (ICO) despite a downward correction, with the ICO composite indicator price falling from 142.99 US cents per lb on July 01 to 132.17 cents/lb on July 31, prices remained firm, with the July monthly average at 132.78 cents/lb compared to 130.51 cents/lb in June.

Indian Sugar Futures Are Seen Up - Aug 08 , 2008

MUMBAI: Indian sugar futures are seen up ahead of key sowing data on cane planting to be released later in the day and on expectations of lower delivery in the near-month contract, which expires on Aug 20, analysts said.

The sugar September futures ended down 1.55 percent at 1,773 rupees per 100 kg on the National Commodity and Derivatives Exchange on Thursday.

However, higher inflation number and expectations of a drop in physical demand may limit the gains, analysts said.

Copper Futures Are ExpecteS To Open - Aug 08 , 2008

MUMBAI: Copper futures are expected to open little changed on Friday on the back of soft demand outlook and rising stocks, an analyst said. The benchmark August copper on the Multi Commodity Exchange of India (MCX) closed on Thursday at 320.05 rupees.

It may open around 320 rupees per kg, one analyst said. Copper prices are expected to trade steady later in the day after gaining slightly on bargain hunting on Thursday ,the analyst added. August zinc closed at 74.45 rupees and lead for August delivery ended at 90.5 rupees per kg. Nickel prices are expected to trade strong on Friday.

August nickel closed at 793.7 rupees. Nickel prices gained more than 5 percent on Thursday on short covering and news of a deferred expansion plan from Australia's Minara Resources Ltd, the world's second largest nickel miner.

GOLD: India's gold futures are expected to open lower on the MCX on Friday, tracking foreign markets that tumbled to a seven-week low, losing some of its shine as an alternate investment after the dollar strengthened, an analyst said.

The benchmark October gold is expected to open below 12,000 rupees per 10 grams from its closing at 12,028 rupees the previous day, the analyst added. Silver futures are also seen falling on the back of gold. September silver is likely to open around 22,750 rupees per kg from its close at 22,817 rupees, the analyst said.

India's Edible Oil Imports To Gain Momentum - Aug 08 , 2008

India has imported 2,60,000 tonnes of cooking oil as part of its one million import programme so far and has set a target of one million tonnes of import by March 2009 to keep a check on food inflation. The decision to import the edible oil from countries like Indonesia, Malaysia and a few Latin American countries have proved 'helpful' in terms of controlling the price rise, officials said here today.

The Commerce Ministry officials said that if needed the government would even enhance the procurement quantity. The government's argument holds water because as many as 24 states have put in their demand request for their respective share of the imported edible oil.

The Centre has already allocated about 93,400 tonnes of imported oil to the states. Till now, official sources said Andhra Pradesh, Maharashtra and Tamil Nadu have been the three principal recipients. India imports about 5 million tones every year out of which nearly two-third is comprised of palm oil. The announcement to procure edible oil from abroad to check price rise was made in April by Agriculture and Food Minister Sharad Pawar, while he launched the distribution programme of the same in Hyderabad last month. Officials confirm that so far 52% of contracted imported oil has arrived at various Indian ports.

The state-owned PEC, NAFED, State Trade Corporation and MNPC are involved in this year's import programme. The import of palm oil is considered cheaper than soya oil as palm oil can be brought from countries like Malaysia, soya oil has to be brought from Latin American countries like Brazil.

Sugar Futures Opened Higher On Thursday - Aug 07 , 2008

MUMBAI: Sugar futures opened higher on Thursday on expectations of good spot demand ahead of festival season amid lower-than-expected supplies, analysts said.

India's festival season starts from end-August and demand for sugar usually increases ahead of the season.

India allowed mills to sell 900,000 tonnes sugar in the open market in August, lower than market expectations.

At 11:11 am, the sugar September futures contract was up 0.56 per cent at 1,811 rupees per 100 kg on the National Commodity and Derivatives Exchange.

Oilseed Futures Opened Lower On Thursday - Aug 07 , 2008

MUMBAI: Oilseed futures opened lower on Thursday tracking weak Malaysian palm, and on profit-taking after the previous session's sharp rise, analysts said.

At 11:14 am, palm oil October contract on the Bursa Malaysia Derivatives Exchange was down 1.11 per cent at 2,759 ringgit a tonne.

At 11:15 am, soybean September contract was 0.72 per cent lower at 2,428 rupees per 100 kg.

At 11:16 a.m, rapeseed November contract on NCDEX was down 0.32 per cent at 593.65 rupees per 20 kg.

Soybean and rapeseed are crushed to derive soyoil and rapeseed oil, which compete with palm oil and their prices usually move in tandem.

Kochi To Organize Global Summit On Rubber - Aug 07 , 2008

Kochi: Kochi has decided to organize India's first Rubber Summit and Dinner on August 16 with large participation of rubber and tyre industry leaders from across the globe. The theme of the event is India: A Potential Rubber Power. There will be a seminar on the potential, challenges and opportunities of the country's rubber industry in the backdrop of rising prices of natural rubber. The centre stage of global rubber economy has been shifting to the Asian region, in terms of production and consumption, and this makes the event here significant.The theme of the event assumes significance in the light of China having emerged as the world's largest consumer of rubber.

At present, India is facing the challenge of catching up with China in terms of economic growth. Experts and decision makers from major rubber producing countries are expected to make presentations at the summit in Kochi on a variety of rubber-related topics such as supply and consumption trends, price trends, synthetic and other alternatives of natural rubber, impact of oil prices on rubber prices and the role of R&D. Those who will be making presentations at the summit include experts from Rubber Board (India), International Rubber Study Group, All India Rubber Industries Association, Malaysian Rubber Board and All India Tyre Manufacturers Association. The conference is being organised by Rubber Asia, a rubber trade magazine of Asia, in association with Rubber Board and All India Rubber Industries Association.

Cardamom Rates Increase On Thin Arrivals - Aug 06 , 2008

Kochi: Cardamom prices increased last week on thin arrivals at auction centres in Kerala and Tamil Nadu. The main reason attributed to the fall in arrivals is incessant rains and the accompanying winds in the growing areas which disrupted picking. The good arrivals since June last were because of the extended summer showers. Even now, the growing areas are getting rains and that could change the situation. The arrivals on Aug 4 at the CPA auction in Bodinayakkanur was at six tonnes and almost the entire quantity was sold out. Maximum price got was Rs 637.50 and the minimum, Rs 489. The average price was at Rs 560.42.

North Indian purchasers were active. The market was firm with an upward swing. The bulk accounted for 20 per cent of it with 8mm bold fetching Rs 600 and above a kg. Total arrivals during the current official season from August 1 to 3 was at 36 tonnes as against 43 tonnes during the same period last season. Similarly, the sales also fell by 2,175 tonnes to 5,494 tonnes from 7,669 tonnes. The weighted average price was at Rs 507.84 a kg as against Rs 315.27 the previous season.

Pepper Futurer Sees High Volatility - Aug 06 , 2008

Kochi: Pepper futures market on Aug 5 was highly volatile and ended slightly higher than that of Aug 4. August contract was increased by Rs 48 a quintal to close at Rs 14,111. The increase in other contracts was from Rs 59 to Rs 75 a quintal on NCDEX. Strengthening of the rupee against the dollar coupled with the upward trend in the Indian market has kept our parity at higher levels at $3,550-3,600 a tonne C&F.

Domestic demand remained to be good and it is hoped to go up as the festival season is fast approaching. The total turnover was increased by 1,388 tonnes to close at 6,734 tonnes while the total open interest fall by 314 tonnes to 19,773 tonnes.

Rubber Falls On Global Cues - Aug 06 , 2008

Kottayam: Spot rubber gave up on Aug 5. The sentiments were led by the losses in world indices, which decline deeply in, to the negative territory following falls in oil and precious metals futures. RSS 4 declined to Rs 136 from Rs 137.50 a kg amidst improved volumes. The session saw better arrivals from growers while major consuming industries turned inactive letting the market to fall on renewed selling pressure. Spot rates were (Rs/kg): RSS-4: 136 (137.50); RSS-5: 134 (135); ungraded: 128 (131.50); ISNR 20: 133 (134.50) and latex 60 per cent: 85 (87).

Pepper Futures Market Fall On All Contracts On Bearish Activities - Aug 05 , २008

Kochi: Pepper futures market on Aug 4 saw a fall on all contracts on bearish activities. August contract was fell by Rs 125 a quintal to close at Rs 14,065. The decline in other contracts was from Rs 100 to Rs 137 a quintal. Total turnover fell by 2,204 tonnes to 5,346 tonnes. August fell by 246 tonnes while September and October increased by 41 tonnes and 314 tonnes respectively. North Indian dealers are said to be moving around in the growing areas and primary markets, ready to purchase at terminal market price and even at higher levels. MG 1 spot price is above the August price and hence some operators were ready to sell from selective warehouses at Re 1 above the August price. The current market trend does not appear to be in the interest of the futures market and needs some correction. Spot rates in tandem with the futures market trend were down by Rs 100 a quintal to close at Rs 13,700 (un-garbled) and Rs 14,300 (MG 1) on Aug 4.

Maize Prices Fell Slightly - Aug 05 , 2008

Mumbai: The maize prices fell slightly by end of the week on expectations that soymeal and soyabean prices may slip. Last week, a few trading sessions witnessed bullishness in the market. Since the poultry industry is a major consumer of maize, accounting for over 80 per cent of the total production in the country, a downtrend in soymeal (substitute of maize for poultry industry) may impact the maize market. Because of the ban on maize exports, buying from exporters has also vanished.

Additionally, according to the experts, as monsoon progresses, the kharif crop of maize would be larger than last year's production and thereby its prices will sharply react to these developments. On the National Commodity and Derivatives Exchange, the near-month contract of the commodity traded firm and touched a high of Rs 1,062 a quintal. On the spot market, the prices came down by Rs 10-30 a quintal in the major markets of Nizamabad, Davangere and Ahmedabad as offtake from the maize user industry reduced.

Rubber Rates Weakened Further - Aug 05 , 2008

Kottayam: The rubber rates weakened further on Aug 4. The market declined as certain dealers and growers joined the sellers' queue fearing the trend to remain bearish in short term. Sheet rubber RSS 4 fell to Rs 137.50 from Rs 138.50 a kg on the previous weekend. Meanwhile major manufacturers kept its quotes much below at Rs 137 to avoid an immediate recovery in prices. Spot rates were (Rs/kg): RSS-4: 137.50 (138.50); RSS-5: 135 (137); ungraded: 131.50 (133); ISNR 20: 134.50 (136) and latex 60 per cent: 87 (89).

Increasing Export Demand Likely To Push Up Chilli Prices - Aug 04 , 2008

Mumbai: The sharp decline in chilli arrivals in the Guntur spot markets and increasing export demand likely to push up chilli prices in the short term. Inventory in the cold storages has declined from 48 lakh bags last month to 40 lakh bags due to strong export demand from Sri Lanka, Malaysia and the US for good quality such as Badgi and Teja Aswhini.

The market saw a shortage of good quality chilli due to unseasonal rains in the growing region of Andhra Pradesh. Chilli exports in the first two months increased 21 per cent to 50,000 tonnes in the fiscal '09. Despite better realisation, the acreage under chilli cultivation may not go up drastically this crop season because of heavy losses incurred by farmers due to crop damage last year.

Insufficient rain in the last two months has pushed up chilli rates, but it started correcting with the revival of monsoon in Maharashtra and Andhra Pradesh in mid-July.

Rubber Price Falls On Global Cues - Aug 04 , 2008

Kottayam: Physical rubber prices declined into a corrective phase on Aug 2. The trading centres saw moderate selling pressure from dealers mainly as the international prices ruled much below the domestic rates. Sheet rubber declined to Rs 138.50 from Rs 141 a kg while the market made all-round declines on purchaser resistance. Spot prices were (Rs/kg): RSS-4: 138.50 (141); RSS-5: 137 (138.50); ungraded: 133 (134); ISNR 20: 136 (137) and latex 60 per cent: 89.00 (89).

Coonoor Tea Prices Increase - Aug 04 , 2008

Coonoor: Prices increased by Rs 4 a kg at Sale No: 31 of the Coonoor Tea Trade Association (CTTA) auctions here on Aug 1 as the demand was strong enough to absorb the huge volume of 13.39 lakh kg at high bids. Both exporters and domestic traders actively competed. They have good demand from Gujarat, Maharashtra, Punjab, Rajasthan and Karnataka. Whole leaf orthodox teas sold Rs 5-12 a kg more. Brokens got Rs 2-3 more.

High-priced CTC leaf grades were dearer by Rs 2-4. Plainers also increased by Rs 2-4. Primary orthodox dusts were up by Rs 5-10. Brighter liquoring CTC dusts got Rs 2-3 more. Better medium and medium grades appreciated by Rs 3. Plainers were dearer up to Rs 2. Among exporters, Pakistan purchased blacker cleaner sorts paying up to Rs 81 a kg.

CIS operated on bolder grades from Rs 56-64. Egypt got medium CTC dusts for up to Rs 64. Tunisia purchased CTC leaf at Rs 76. Kenya bought CTC smaller dusts for Rs 64.

Government Announces Its New Policy For Low-Priced Wheat Sale- Aug 02 , 2008

NEW DELHI: The government will announce its new policy for low-priced wheat sale in the open market by August 15. A CoS meeting will prepare a blue-print for unveiling the new policy on Friday in New Delhi. About a fortnight back, the Union agriculture minister Sharad Pawar announced that the Centre plans to release 60 lakh tonnes of wheat in the open market to check prices.

The government is planning to allow access to reasonably-priced non-branded wheat which will, however, be more expensive than above poverty line (APL) and below poverty line (BPL) issue price of the PDS. That, in effect, could save the government a fat increase in food subsidy.

"With this announcement, speculators have been warned not to boost wheat prices through hoarding. The price of wheat has remained steady in the recent past," minstry sources maintained. Although wheat wholesale price has remained steady for some weeks now, it has refused to fall.

That is what appears to be bothering the government and pointing to the active involvement of speculators. The higher output and record procurement of wheat should have increased the comfort level of the government on steady wheat WSP.

However, the big procurement has triggered apprehensions about the availability of wheat in the open market. Retail price of wheat, particularly branded wheat, remains high, affect-ing consumers.

Wheat WSP currently rules in the Rs 1,080-1,100 per quintal range. In sourthern markets, the price is pegged higher at an average Rs 200 per quintal on account of transport and other charges.

The high output in the 2007-08 season is viewed as the key reason why wheat WSP is holding steady. Wholesale prices of wheat fell noticeably by Rs 15 a quintal in early June on account of reduced demand from roller flour mills.

Turmeric Futures Extendes Last Trading Sessions - Aug 02 , 2008

The Turmeric futures extended last trading sessions loss today on short selling tracking the weakness in the physical market. The favorable weather in the major growing area added weak cues in the Turmeric futures price. The NCDEX Turmeric futures benchmark October contract drifted lower to the low of Rs 4693 from the opening high of Rs 4750 per quintal. The counter lost nearly Rs 46 per quintal at the sessions low. The counter currently hovering near the sessions low at Rs 4700, technically the price drifted lower below the long term EMA. The open interest in the contract increased 0.92% which stood at 26070 lots as against 25830 lots as on yesterday, indicating short selling.

Copper Prices Fell 2 Percent On Friday - Aug 02 , 2008

Copper which is often used as a hedge against inflation saw a decline in the appeal as the industrial demand for the commodity slowed. The problems in US have been increasing day by day and this has lead to lack of demand from traders. Copper prices fell 2 percent on Friday as a flurry of economic data from the United States still pointed to a severe slowdown and investors worried about metals demand.

After the Federal Reserve stated that it was committed to take out the economy from slump, Dollar saw gains against the major currencies. The dollar experienced strength versus other majors. The greenback climbed to a three-week high against the British pound and also moved to a five-week best against the euro but returned its gains against the European currency.

Copper prices were on its all time highs on 2nd July 2008 when it pulled back. Participants have seen a correction of more than 10% in the prices since than, with the same closing the trading at $ 7900 per tonne on LME.

Inventories data piling up and this is pressurizing the prices. During the month of July inventories have jumped up by 22300 tonnes to 144650 tonnes a rise of 18%. Total cancelled warrants were 14975 tonnes on 31st July 2008 a rise of 131% in a month. Total cancelled warrants at the start of the month were 6475 tonnes.

MCX Copper is now trading at Rs 335 per kg almost unchanged from the last day. Supports for the contract are at 327 levels, Resistances for the contract are at 336 levels. The prices were hovering in the range of Rs 387 per kg on 2nd July from where it has dropped down 14 % so far.
Later Friday morning, the Institute for Supply Management released its report on activity in the manufacturing sector in the month of July, showing no change in business activity compared to the previous month. The ISM said that its purchasing manager’s index edged down to 50.0 in July from 50.2 in June, with 50 the reading that separates expansion and contraction. Economists had expected the index to fall to a reading of 49.2.

India's Coffee Exports Rise 6.2 Percent - Aug 01 , 2008

MUMBAI: India's coffee exports rose 6.2 percent during the first seven months of 2008 on firm export demand from European countries, an official from the Coffee Board said on Friday.

Total exports were 150,927 tonnes during Jan-July, compared with 142,132 tonnes a year-ago, the official, who did not want to be identified, told Reuters. India produces only 4 percent of the world's coffee, but exports 70-80 percent of its output.

Copper Futures Are Expectes To Opening Dawn - Aug 01 , 2008

MUMBAI: Copper futures are expected to open slightly lower on the Multi Commodity Exchange of India Ltd (MCX) on Friday, tracking foreign markets where the metal remained nearly steady, an analyst said.
The benchmark August copper was seen opening around 343 rupees per kg. August copper closed at 343.55 rupees on Thursday up 0.35 per cent from the previous day.
Other base metals are expected to open nearly flat, the analyst added. August zinc closed on Thursday at 81.75 rupees per kg, while August lead closed on the MCX at 94.35 rupees per kg on Thursday, both higher than the previous day.

GOLD

Gold futures are expected to open lower on the MCX on Friday amid cautious trade ahead of key U.S. data that could offer fresh direction to the metal, an analyst said. The benchmark October is expected to open around 12,660 rupees per 10 grams. The October contract ended on Thursday at 12,688 rupees, higher from the previous session.

SILVER

September silver on the MCX is seen opening lower at around 24,670 rupees per kg following gold, from its close at 24,720 rupees.

Rubber Rates Increase To Record High - Aug 01 , 2008

Kottayam: The domestic rubber managed to reach another all time high on July 31. Sheet rubber RSS 4 increased sharply to Rs 142 from Rs 139 a kg on renewed purchasing interest as the trend setting global futures took a turn to close in the positive zone. RSS 3 (spot) fell to Rs 133.83 (134.06) a kg at Bangkok. Spot prices were (Rs/kg): RSS-4: 142 (139); RSS-5: 139 (136.50); ungraded: 136 (133); ISNR 20: 137.50 (135) and latex 60 per cent: 90 (90).