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

2008-12-26T16:33:00.002+05:30

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

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

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

2008-12-26T15:35:00.000+05:30

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

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

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

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

2008-12-26T15:33:00.002+05:30

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

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

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

2008-12-24T14:00:00.000+05:30

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

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

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

2008-12-24T13:52:00.001+05:30

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

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

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

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

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

2008-12-24T10:37:00.001+05:30

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

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

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

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

2008-12-24T10:34:00.002+05:30

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

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

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

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

2008-12-23T15:57:00.001+05:30

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

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

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

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

2008-12-23T14:18:00.000+05:30

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

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

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

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

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

2008-12-23T14:12:00.001+05:30

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

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

Spot Rubber Up To Rs 70/Kg As Demand Improves - Dec 23, 2008

2008-12-23T14:10:00.001+05:30

Kottayam: The physical rubber prices on Dec 22 reported strong gains. The sheet rubber flared up to Rs 70 a kg from Rs 67 due to covering groups that remained extremely aggressive on the grade. The major consuming industries sidelined the market as it registered all-round gains on increased demand. On National Multi Commodity Exchange (NMCE), the RSS 4 improved its January futures to Rs 70.15 (67.46), February to Rs 70.32 (67.62), March to Rs 70.44 (67.74) and April to Rs 72.14 (69.38) a kg.

On the Tokyo Commodity Exchange, the rubber futures extended gains attracting short covering and fresh buying amidst better oil futures and decline of Yen against dollar. The market till the end of the session, maintained the mood. The RSS 3 improved at its January futures to �130.4 (Rs 69.43) (118), February to �131.4 (119.9), March to �132.8 (120.8), April to �134.3 (121.6), May to �136.1 (124) and June to �138.3 (128) a kg at TOCOM. However, at Bangkok its spot closed at Rs 62.44 (61.15) a kg.

The spot rates were (Rs/kg): RSS-4: 70 (67); RSS-5: 68 (65); ungraded: 65 (63); ISNR 20: 66 (63) and latex 60 per cent: 45 (44.50).

Chana Steadies At Rs 2200 In Delhi Rise In The Rabi Crop - Dec 22, 2008

2008-12-22T16:28:00.000+05:30

Chana prices steadied at Rs 2200 per quintal in Delhi today on continued buying interest from the stockists. The prices have hovered at the same levels since teh last two days. The commodity has been receptive to the idea that the steady progress in the rabi sowing would pressurize the prices in near term and futures were discounting a generous rise in the rabi Chana crop. The sowing continues till the end of January and the arrivals normally start from the middle of March. According to the latest estimates from the Ministry of Agriculture, the area under the crop stood at 75.10 lakh hectares, recording a 9% increase till Dec 19. The overall acreage of Rabi pulses is also higher, and it is likely to further weigh on the prices.

Japan 2008 Raw Steel Output To Hit First Drop In 3 Years - Dec 22, 2008

2008-12-22T14:56:00.000+05:30

Japanese raw steel output decreased by 12.9% to 8.881 million tonnes in November from a year earlier, which decreased for 2 months in a row, announced by Japan Iron and Steel Federation on Friday. The output decreased to less than 10 million tonnes for the first time in 9 months and was the lowest monthly output since April 2002 except for February output. The year to date output increased by 1.3% from same period of 2007 but the output could decrease for full year from 2007 if the December output would be the level in November. The yearly output could decrease for the first time in 3 years when Japanese makers expand the production cut.

Market Bumper Paddy Crop In Kashmir Valley Of High Quality - Dec 22, 2008

2008-12-22T14:53:00.000+05:30

Even as Kashmir is loosing thousands of hectares of its agricultural land to urbanization, Paddy production has hit a record-breaking high of five lakh MT due to the use of high-quality seeds and fertilizers.Although Agriculture Department officials are concerned about losing paddy fields to urbanization, they are using alternate means to increase the paddy production.

Kashmir produces K 28 and IR 8 varieties of paddy with the districts of South Kashmir producing the maximum yield. Of late, farmers are selling the paddy fields around the National Highway to the real estate dealers due to the remunerative price it fetches them. Though, the J-K government has put in place a blanket ban on selling the paddy fields, it has failed to ensure its strict implementation.

Share Market In Korea Largest In 10 Years Feed Industry Throughout - Dec 20, 2008

2008-12-20T12:16:00.003+05:30

The United States has its largest market share percentage in 10 years in Korea's corn import market, according to U.S. Grains Council (USGC) Director in Seoul, Byong Ryol Min. Min reported that Korea has imported 8.8 million tonnes of feed grains and substitutes during the period of January through October, representing a 2.7% increase over the 8.6 million tonnes imported during the same period last year.

The United States enjoyed 83.2% of the nation's total feed grains and substitutes import market, the highest since 1984 and a drastic increase compared with 39% reported during the past three years," he said. Of the total feed grains and substitutes imported, 87.8% or 7.8 million tonnes (307 million bushels) was corn. "The U.S. market share in Korea's corn import market was recorded at 94.4%, the highest in 10 years and a significant increase compared to the 48% it held the past three years," Min said.

According to Mike Callahan, USGC senior director of international operations for Asia, there are two major factors involved in the U.S.' current market share jump in Korea. "One reason behind this year's success is the fact that we've been able to regain a lot of lost share from over the past years, especially from during the time when China was exporting corn. Secondly, the USGC has continued to provide trade and technical services to Korea through thick and thin, even when U.S. market share in Korea was depressed.

Callahan said many new, younger faces have entered Korea's feed industry throughout the years and the USGC has been working closely with them, educating feed representatives about the quality and supply of U.S. corn and the reliability of U.S. producers in their abilities to meet Korea's feed needs. "Because of these continuing customer services, Korean buyers have been kept well informed about U.S. supplies and were able to quickly resume imports of U.S. corn when local market conditions warranted a change in their supply-chain," he said.

Crop Monitor Andhra Pradesh Rabi Sowing 61% Of The Normal Area - Dec 20, 2008

2008-12-20T12:07:00.002+05:30

The total area sown in the State was at 22.09 lakh ha.(61%) as against the normal area of 36.37 lakh ha.. The major area under Bengalgram was at 6.15 lakh ha.(129%) to its season normal of 4.78 lakh ha.Lower sowing acreage was still reported in reported in Paddy, Bajra, Sesamum and Sunflower. As per latest released from IMD, the average rainfall received in Andhra Pradesh from 1-10-2008 to 18-12-2008 was recorded as 148 mm as against the Normal of 221 mm showing with a deviation of -32 percent.

Crop Operations and Conditions,Due to receipt of rainfall, the paddy crops are in sowing progress under well/ minor irrigation. Sowing of pluses are in progress. Harvesting of sugar cane is in progress. Redgram is in full flowering and pod formation stage.

Plummeting Global Commodity Prices Bring Relief For South Africa - Dec 20, 2008

2008-12-20T12:05:00.001+05:30

Plummeting global commodity prices saw inflation at SA's factory and mine gates fall more than expected last month. This is expected to help drive consumer price inflation downwards next year, and provide further support for interest rate cuts.Statistics SA said yesterday that producer prices fell 1.3% last month.And that year-on-year producer price inflation fell to 12.6%, from 14.5% in October.

The market forecast had been 13.7%. The figures come after consumer price inflation fell to a slightly higher than expected 12.1% last month from 12.4% in October, continuing a downward trend expected to become sharper in the first half of next year. But economists say the producer price inflation (PPI), which Stats SA revised and reweighted in January, is no longer very useful as a predictor of consumer price inflation.

PPI is, essentially, a measure of the prices of the goods SA produces rather than those consumers actually use. It measures the prices of outputs in manufacturing, mining, agriculture and electricity, rather than across the entire economy. Almost a fifth of the PPI basket is now mining and quarrying, including commodities such as gold, platinum and iron ore that are produced largely for export.

The PPI measures only the prices of goods, not of services, although services make up a significant part of the basket used to measure consumer price inflation. Producer price inflation peaked at 19.1% in August and has since come down rapidly.

Citibank economist Jean Francois Mercier said that it would probably go back to single digits within a few months. Efficient Group economist Fanie Joubert said that despite the annual rate for basic metals easing slightly to 47.7% last month from October's 50.3% it remained the largest contributor to the annual change in PPI. But the steep drop in oil prices provided much of the downward pressure on the PPI, with inflation in petroleum and coal products falling to 4.8% year on year last month.

Agricultural food prices dropped 6.4% over the year, with grain prices down 11.4%, which could ease the price of staple foods. The Reserve Bank expects inflation to fall within its 3%-6% range by the third quarter of next year.

SEA Says Policy Priorities Need To Be To Break Oilseed - Dec 19, 2008

2008-12-19T16:04:00.000+05:30

According to a latest press release from the Solvent Extractors' Association of India, Shri Ashok Sethia, President has stated that domestic policy priorities are needed to be identified to break stagnant oilseed production in the country. Mr Sethia has stated that trade estimate of kharif oilseed production is around 16.5 million tonnes where as the Government estimates it around 17.5 million tonnes.

The acreage in the rabi oilseed crop has increased to 83.75 lakh hecters from 76.97 lakh hectre last year. We can expect normal rabi oilseeds crop of about 10.0 million tonnes. The overall oilseed production would be around 26.0 to 27.0 million tonnes as such there is hardly growth in average production of last five years. Oilseed production is more or less stagnant leading to higher import of edible oil year on year basis and in the next oil year, the vegetable oil import may increase to over 6.5 million tonnes compared to 6.3 million tonnes in 2007-08.

India needs to decisively break the sluggishness in production growth. The policy priorities need to be redefined. Agriculture, Food security and Nutrition Security should be on the top of the Government's agenda. A country with a large population, a major chunk of which lives below or bordering on the poverty line, can ill-afford to compromise its food security. Under this changed scenario, India has to target self-reliance in food items at least to the extent of 80-85% particularly in edible oils where our self-sufficiency level has declined to a paltry 60% versus 97% in 1992-93. We shall head towards a crisis situation if we do not gear up now, and put in place policies and investments for increasing production of oilseeds to meet our growing requirement of edible oils.

World Crude Steel Production Drops To 89 Million Mt In November 2008 - Dec 19, 2008

2008-12-19T12:29:00.000+05:30

World crude steel production dropped to 89 million mt in November 2008. This is down 10.3% versus the previous month, and a fall of 19% compared to the same time last year, the World Steel Association wrote in a report Thursday. Earlier strong performances, however, meant global production increased 0.9% between January to November, versus the first 11 months of 2007 to 1.2 billion mt. Ukraine, one of the world's biggest steel exporters, saw its annual crude steel production plummet 54.9% year on year. With 1.59 million mt of crude steel produced in November, this is some 17% less than in the previous month.

Five other states saw yearly production fall greater than 50%: Luxembourg (58.9%), Morocco (87.3%), Zimbabwe (100%), Trinidad and Tobago (87.4%) and Kazakhstan (58.5%). Total 2008 production in embattled Zimbabwe has withered to nothing from 22,000 mt for the first 11 months of last year.

Overall, the CIS produced 5.8 million mt of crude steel, a decrease of 43.1% from November 2007, and 18.5% less than October this year. In Asia, this fell 11.4% to 54.1 million mt from 61 million mt a year ago, and 5% below October 2008. China, the largest global exporter of steel, suffered a 12.4% drop in production in a year, though its monthly figure only slipped to 35.2 million mt last month from 35.9 million metric tons in October.

North America was down 30.4% year on year at 7.74 million mt. The United States was 38.4% below its November 2007 level, at around 5.05 million mt. South America shrank 17.8% to 3.41 million mt versus last year, and from 4.1 million in October.

All nine of Worldsteel's regional categories were producing between 9% and 43% less crude steel than in November 2007. Despite the overall negative trend, some countries saw their annual crude steel production rise, including Austria (11.7%), Uruguay (14.8%) and Croatia (93.3%). The International Iron and Steel Institute changed its name to World Steel Association on October 6. The association collects production data from 66 countries.

Red Chilli Near Month Futures Rise Nearly 17% From Contract Low - Dec 19, 2008

2008-12-19T12:28:00.000+05:30

The NCDEX Red Chilli futures near month contract are trading with hefty gains for the fourth consecutive trading session on continued heavy short covering ahead of the expiry.

The near month December 2008 contract slumped nearly 13% in the month of December, after hitting the previous bottom level, the near month December contract rallied nearly 17% in the last four sessions on heavy short covering ahead of the expiry.

In the last four trading sessions, the December 2008 contract spurted nearly 17% from the recent low of Rs 4660 per 100 kg. The open interest dropped nearly 44% in the last four trading session to 305 lots as on today from 545 lots as on 15th December 2008.

The December futures currently quotes near the session high at Rs 5425 after spurted nearly 4% to Rs 5459 per 100 from the last close. The volume traded in the contract as of now stood at 220 lots.

The February 2009 contract currently trades marginally lower Rs 4 at Rs 4540 per 100 kg and the open interest open interest remain unchanged at 480 lots. The February futures spurted in the last three trading session.

Australia's OZ Minerals Suspends Operations At Its Avebury Nickel Mine - Dec 19, 2008

2008-12-19T12:25:00.001+05:30

Australia's OZ Minerals has suspended operations at its Avebury nickel mine in Tasmania, in response to the sharp fall in metal prices, the company said Friday. With current nickel prices at around $4.40/lb, the firm's CEO Andrew Michelmore said the Avebury operation was just not profitable. "In the nine months we've seen the nickel price drop by 68% an unprecedented fall in such a valuable commodity," said Michelmore. "At these prices, it is simply more economical to keep this metal in the ground and resume production when prices improve."

The decision will result in the loss of 189 jobs at the operation, although OZ will work with the staff to identify alternate roles within the company where possible. The nickel-sulphide concentrate sales from Avebury are contracted to Chinese non-ferrous metallurgical firm Jinchuan Group. OZ said it is in discussions with Jinchuan about the impact of Avebury's closure and expects supply to Jinchuan to continue when production resumes.

The Avebury mine was commissioned in August and has produced 10,381 mt of nickel concentrates to date. "Obviously, this is a disappointing decision to make as the mine had just recently commenced production," said Michelmore. The mine is located 10 km west of Zeehan on the West Coast of Tasmania, and has nickel reserves of 5.85 million mt and resources of 18.2 million mt.

Fresh Round Of Selling In Copper Prices Break Supports - Dec 18, 2008

2008-12-18T15:19:00.001+05:30

Fresh bout of selling has been witnessed in today's Copper trades. Fresh levels of supports were broken by Copper on MCX today and further shrinking from here looks probable. On one hand Dollar is trading at two month lows against the EURO and on the other hand inventory position has been all the more worrisome for the demand in coming days. Prices tend to move in opposite direction of Dollar. MCX Copper is at Rs 146.20 per kg currently as against Rs 149.90 per kg on 17th Dec 2008.

Expectations were for the prices to move towards 145 levels and Copper has already registered a low of 145.65. From the current levels prices can move towards 142 and 140 levels. Resistances for the contract are at 147.30 levels.

Supports for Copper have been coming from the selling in Dollar against the EURO which tends to make the commodities attractive. Traders have continued to punish the greenback following unprecedented rate cut by the FOMC to lower its key interest rate to a target range of 0 to 0.25%. The dollar plunged to a fresh 13-year low against the yen of 87.16 last night. Yen is currently quoting at 88.08. Dollar is at 1.4444 against the EURO.

Inventory pile up has continued in LME warehouses where stocks have so far reached 321900 tonnes with gains of 3275 tonnes last night. LME Copper three month forwards were at $ 3041 per tonne last night.

Earlier in the month Chinese production data of Copper showed a rise of 12% in November on an M-o-M basis. On a Y-o-Y basis production still fell short by 2.3 percent from year ago amid a swift slowdown in industrial output from China to its slowest pace in at least nine years in November.

Nickel Prices In The Domestic Futures Markets Were Slogging - Dec 18, 2008

2008-12-18T14:19:00.000+05:30

Nickel prices are slogging in the mid-session trades. Across the board selling in metals has gripped the markets. Nickel prices in the domestic futures markets were once in the region Rs 1323 per kg during March (6th March 2008) from where they have gyrated to 451 levels currently. This marks 66% depletion in the prices in a span of 10 months.

LME Nickel closed at $ 9890 per tonne on 17th Dec 2008 with inventories at 70722 tonnes. Global nickel prices reached an all-time high of $ 51,800 a tonne in May 2007, but were already sharply lower by the end of last year at around $ 26,000.

Earlier during the month, Asia's largest nickel producer Jinchuan Group (JNMC) in China announced to cut its nickel factory price by 5,000 yuan to 85,000 yuan per ton. The No. 1 electrolytic nickel on Shanghai spot market was priced at 85750 yuan per ton, down by 1,500 yuan. Earlier, Jinchuan has cut its nickel production by 20000 tons to 100000 tons this year on sluggish market demand.

The recent fall in global metal prices also forced the world's largest nickel miner, Norilsk Nickel International, to urgently consider an operational review of Tati Nickel Mine operations. "We have been affected by the global financial crisis and the fall in the metal prices in particular," said Tati Nickel's Manager for Organizational Capability, Peter Meswele. Halts in FNX mining operations due to decline in prices and Xstrata suspension of operations at Falcando Nickel mine was also in picture in early December. In 2007 Falcondo produced 29,130 tonnes of nickel in ferro-nickel.

Nickel is a metal whose demand is generated from the Steel sector. Nickel is mostly used to produce 300 series or Austenitic Steel. But with demand for Steel clobbered by thumping crisis, it has affected the prices of Nickel.

Sugarcane Production Likely To Drop Tonne In Karnataka - Dec 18, 2008

2008-12-18T13:28:00.002+05:30

Sugarcane in Karnataka is expected to touch 300 lakh tonnes during 2008-09 against 400 lakh tonnes last year.Minister for Sugar and Agricultural Marketing reported that nearly 20 lakh tonnes of cane will be available for crushing in sugar factories while the remaining will go for jaggery production. Erratic monsoon starting from heavy downpour to long dry spell in several districts were the main reasons for the roughly 25 per cent fall in cane cultivation.

Taking exception to the Centre's decision of fixing a minimum support price of Rs 811.50 per tonne, the same as last year, despite a steep hike in the cost of cultivation, he said the state government had asked sugar factories in north and south Karnataka to pay Rs 1,200 and Rs 1,100 per tonne respectively.

The growers have been demanding Rs. 1,550 a tonne of sugarcane, the price recommended to the Centre by the Commission for Agricultural Cost and Price (CACP) for nine per cent recovery of sugar per tonne of cane.During the President rule in the State, Governor Rameshwar Thakur had announced a bail-out package and granted an additional Rs. 160 per tonne to farmers last year with the total amounting to Rs. 370 crore.

International Mcx Oil Down Over As Strong Rupee Hurts - Dec 18, 2008

2008-12-18T13:24:00.001+05:30

International Oil futures are trading below the $40 a barrel in the early Asia trades today, hitting a low of $ 39.19 earlier in the session. MCX Oil also pummeled nearly Rs 80 with additional pressure coming from stinger Rupee. Yesterday oil faced heavy bout of selling pressure after the OPEC announced output cut and the fall was also accompanied by the lower US equities and a big increase in the weekly inventories data. Crude for January delivery fell by whopping 8% to below $ 40 a barrel.

U.S. crude oil supplies rose 500,000 barrels to 321.3 million barrels in the week to Dec. 12, up 26.5 million from year ago, the Energy Information Administration said. Distillate supplies, including heating oil and diesel fuel, rose 2.9 million barrels, with heating oil supplies up 600,000 barrels. Gasoline supplies rose 1.3 million barrels. Supplies rose despite refinery utilization dropping 3.3 percent. U.S. fuel demand in November dropped 7.4 percent from a year earlier to the lowest for the month since 1998; the industry- funded American Petroleum Institute said in a report today.

MCX Crude January futures are trading down Rs 76 at Rs 2138 per barrel. The supports are at 2090 levels. The Indian rupee climbed towards a fresh one-month high on Thursday, following the dollar's weakness against some Asian currencies and a firmer stock market. The partially convertible rupee was at 47.29 per dollar, stronger than Wednesday's close of 47.45. NYMEX Oil slipped 10 cents trading at $ 39.96 per barrel. The counter may face a stiff resistance near 41 levels today and a good support at $39 levels.

Pakistan Government May Allow Urgent Import Of 0.4 Million - Dec 17, 2008

2008-12-17T15:34:00.002+05:30

Pakistan goverment within a couple of days is likely to allow import of 0.4 million tons raw sugar as current sugar stocks can meet requirements of only one month, sources.On the other hand, sugar millers are of the view that there is a glut in the market, and mills are facing difficulties in payment to the farmers.

The Industries Ministry had advised the policy makers, especially the Finance Ministry, that the government should immediately decide about import of sugar to meet next year's requirements as the Pakistan Sugar Mills Association (PSMA) has already indicated shortage of sugar.

Sources said that Finance Ministry did not approve the proposal but asked the Industries Ministry to bring the proposal back in December. "Total stock of sugar is sufficient for only up to January 15, 2009, while the stock with the Trading Corporation of Pakistan (TCP) would also deplete during this period as it would be supplying sugar to the Utility Stores Corporation and the armed forces," sources added.

Some officials in the government believe that the country would face shortage of 1.5 million tons sugar, which has to be imported and, if the government goes for raw sugar, it can save a reasonable amount of foreign exchange besides value-addition in sugar mills.

Last year, PSMA had claimed that 1.2 million tons sugar would be surplus, but at the end of the season this claim proved wrong. About 0.6 million tons sugar had been exported, or smuggled, which is said to be one of the reasons of shortage in 2009, sources said.

The country's monthly consumption of sugar is around 0.35 million tons and the Finance Ministry, in its report to the Economic Co-ordination Committee (ECC) some three weeks ago, had stated that the country might face sugar crisis from November onward. However, new forecasts suggest that crisis may have started from mid-October. However, Finance Ministry's apprehensions proved to be wrong and the stocks are only enough till the middle of January. The government has already imposed duty on sugar export, and removed duty on refined sugar import.

Gazprom Neft Reduces Electronic Trades On Poor Oil Demand - Dec 17, 2008

2008-12-17T14:26:00.001+05:30

Russian Gazprom Neft, the oil arm of Russian gas giant Gazprom, looks more likely to return to the general tender system of trading in the domestic market after it announced a sell-tender Tuesday, sources said. It signals a move away from its electronic platform which was launched September 1 but which has been hit by sluggish demand and low trading liquidity.

The company announced a sell-tender Tuesday via an emailed tender notification letter to market participants to sell remaining volumes of diesel and HSFO for December deliveries. "This tender is for rather small volumes, so we decided to test whether the previous system is still working," said a source at Gazprom Neft.

However, lackluster buying interest for oil in the Russian domestic market this last month has also raised concerns regarding the effectiveness of the platform, as few bids have materialized. "Bids are very scarce now, it is much easier to sell product directly to the specific consumer," the source said. The company will nevertheless continue to use the platform as a mechanism for awarding tenders in the near future amid gloomy demand.

Gazprom Neft's September launch of electronic oil product sales was aimed at selling 250,000 mt of products via the platform by the end of the year. At the time, Gazprom Neft said the platform's transparency would allow it to conduct sales in real-time, raising the effectiveness of sales. In addition, the electronic trade, Gazprom Neft said, would allow it to form market prices of oil products, which could serve as indicators for other, market participants.

Pakistan Reap Boycotts Tcp Tender Basmati Rice Purchase - Dec 17, 2008

2008-12-17T14:17:00.000+05:30

Rice Exporters Association of Pakistan have strongly opposed and boycotted the TCP's tender for procuring 100,000 MT Basmati rice and 200,000 MT of Irri-6 rice.Chairman REAP, Abdul Raheem Janoo said that the association has decided to withdraw from the tender and urged the government to take REAP on board on the critical issue of rice purchase.

Exporters were earlier hesitant to supply rice to Pakistan Agriculture Storage and Services Corporation (PASSCO) and now this tender by the TCP has further perturbed them. Exporters believe that this step will result in losing the hard-earned international market share by the private sector of Pakistan during the past 20 years.

National Bureau Of Statistics Of China Crude Falls 12.4% - Dec 16, 2008

2008-12-16T15:43:00.001+05:30

China's crude steel production for November dropped 12.4% year on year to reach 35.19 million mt, according to latest figures from the National Bureau of Statistics of China Tuesday. Crude steel output for the first 11 months of the year, however, totaled 462.96 million mt, which was up a marginal 2.6% from a year ago. Steel products output for the month reached 42.3 million mt, which was down 11% compared with the same month in 2007.

Steel products output over January-November totaled 530.75 million mt, which was 4.3% higher year on year. The country also produced 33.52 million mt of pig iron in November, which was a drop of 16.2% from a year ago. Pig iron production in the 11-month period totaled 434.15 million mt, up 1% from the year earlier.In November 2008, China produced 72.39 million of iron ore, which was a 13.3% increase from the same month in 2007.

The country's total iron ore output for January-November 2008 reached 741.55 million mt, which was an increase of 20.4% year on year. Meanwhile, the country produced 713,500 units of automobiles in November, which was a decrease of 15.9% over the same month in 2007, the bureau figures showed. China produced 8.94 million units of automobiles over January-November, up 9.7% year on year.

Castor Seed Futures Sharply Short Covering Drives Upwards - Dec 16, 2008

2008-12-16T15:14:00.000+05:30

Castor seed futures drove sharply up today as a hefty bout of short covering proved instrumental in bringing in impressive gains for the commodity. The spot prices are also trading off one month lows in Disa today, arresting the two day losing streak as some bargain buying emerged in the commodity.

The movement in the other oilseeds was mixed today but the Castor seed futures seemed to be discounting the fact that waning arrivals in the days to come would support the prices. The commodity has experienced a steady up trend since the beginning of the month in the futures market even as spot prices lingered in a relatively tight band.

NCDEX December futures hit a high of Rs 576 and currently trade at the same level, gaining Rs 6.20 per 20 kg or 1.09% with a massive 13.16% drop in the open interest. The counter expires on 19 December. Spot prices edged up to Rs 576.50 per 20 kg in Disa, up Rs 1.80 on the day.

Markets In The Monitoring Period From Barrel World Oil Prices - Dec 15, 2008

2008-12-15T15:32:00.001+05:30

Russia's oil export duty may increase up to $119.1 per metric ton from January 1, a finance ministry official said on Monday. "The maximum oil export duty from January 1 could be $119.1 per metric ton," Alexander Sakovich, deputy head of the customs payments department at the ministry, said.

The Russian government earlier decided to set export duties on oil and oil products on a monthly basis from December 1 and abandon the previously accepted bimonthly practice. Duty on light petroleum products could be cut to $92.6 per metric ton and on heavy petroleum products to $49.9 per metric ton, he added.

Sakovich also said the average price for Urals crude on world markets in the monitoring period from November 15 to December 14 inclusive was $43.9 per barrel. World oil prices have fallen more than 60% from a record high of $147 per barrel in July as the global credit crunch has reduced the demand for fuel.

Zambia Handling Carefully Situation Of Fall In Copper Prices - Dec 15, 2008

2008-12-15T15:26:00.001+05:30

The challenges in the mining sector in Zambia arising from plummeting copper prices and the world economic crisis need to be handled with caution and level-headedness. Copper mining is still the mainstay of the country's economy and any emotional outbursts and approach are bound to create distortions in the financial and key sectors of the economy.

The announcement on Saturday that Luanshya Copper Mines (LCM) will cease operations and be placed under care and maintenance has obviously evoked various feelings, some of them unpleasant particularly among primary stakeholders such as workers. However, the Mineworkers Union of Zambia (MUZ) has exhibited caution and maturity regarding the developments at LCM, which has a total workforce of 1,741.

MUZ general secretary Oswell Munyenyembe has indicated that his organisation has welcomed President Banda's decision to involve all stakeholders as the Government and LCM management handle all issues surrounding the problem at the mine. We appeal to workers and other stakeholders to remain calm and analyze all issues that have led management to decide to place the mine under care and maintenance while weighing other options to revitalise operations.

It is important to look at two issues critically. One is that the price of copper on the international market has dropped drastically and the obvious effect is that profitability is negatively affected. Secondly, it should be borne in mind that the world economic meltdown, which has effected even the most powerful capitalist states in the West, has not only negatively affected the profit levels, but has also pushed production and other costs upwards.

This scenario does not only affect this country, but other countries some of which are in worse situations than Zambia. It is with the above in mind that the labour representatives, the miners, contractors and suppliers to the mining firms being primary stakeholders, should remain steadfast and be wary of any elements that would want to mislead them.

Some elements may want to take advantage of the situation in Luanshya and other mining towns to promote their own agenda and embarrass the Government. They would want to spread messages to suggest that the Government and investors have failed the people in Zambia when it is in fact the dictates of the world economy at play.

Thus, we appeal to the Zambians to analyze all issues in their entirety so that the country's economy does not slump further arising from actions such as demonstrations, which could create tension and scare aware investors. Investors worldwide would want to put their investment in a safe and peaceful environment, which Zambia is.

China To Encourage Mergers In Iron And Steel Industry - Dec 15, 2008

2008-12-15T14:10:00.000+05:30

China will encourage mergers in the iron and steel industry, said Minister of Industry and Information Technology Li Yizhong in Beijing, in another move to offset the adverse impact of the global financial turmoil. Li told reporters that "the industry was one of the hardest-hit sectors amid the deepening financial turmoil" and the government will encourage large domestic steel producers to buy smaller ones.

The government has been urging the industry to rationalize for some time, but there are still nearly 1,000 iron and steel producers, most of which are small. The industry is also operating below capacity. This year, steel output will be 480 million to 490 million tonnes, against total capacity of 600 million tonnes, Li estimated.

The government will extend financing on favorable terms to help the steel industry upgrade its technology, said Li. China's steel sector has experienced tough times amid the international financial and economic crisis. Steel prices have slumped by nearly a half in recent months and there are no signs of recovery. Li also said China should have a say in iron ore pricing, adding that Chinese steel makers should work together to avoid pushing up iron ore prices in international negotiations.

Historic Commodity Price Boom Ends With Slowing Global Growth - Dec 13, 2008

2008-12-13T12:20:00.002+05:30

A new World Bank report, subtitled “Commodities at the Crossroads”, founds that future demand and supply of key commodities like oil and food can be balanced given the right policies in the energy and agriculture sectors.

Commodities at the crossroads" Recent sharp declines in oil and food prices mark the end of what has been the most historic commodity price boom of the past century. Like earlier booms, this one was driven by strong global economic growth and has come to an end with the abrupt slowdown in the global economy precipitated by the financial crisis.

The exceptional duration of this five-year commodity boom, the number of commodities involved, and the heights that prices reached reflect the resilience of developing country growth during this period.

Between early 2003 and mid-2008, oil prices climbed by 320 percent in dollar terms, and internationally traded food prices by 138 percent. But the prolonged boom is clearly over, even as the social and human consequences of historic high prices linger. Prices across the board have fallen, giving up much of their earlier gains, due to slower GDP growth, increased supplies, and revised expectations.

However, they still remain a lot higher than they were at the start of the boom and are expected to remain higher than during the 1990s over the next 20 years, owing to biofuel-driven demand for food grains. Oil prices are likely to average about $75 a barrel next year and, for the next five years, real food prices worldwide are expected to remain about 25 percent higher than they were in the 1990s.

Despite the fall in commodity prices, concerns persist about long-term demand and supply, and about the impact of high commodity prices on poor people. The report’s examine whether the world might be heading into a prolonged period of insufficiency, with—as some fear dwindling supplies of oil, metals, and food grains, and ever-increasing prices. They also look at how poor people are affected and how best they can be helped.

“We find that speculation about looming shortages of food and energy are not well founded, and that the world won’t run out of key commodities given the right policies,” said Andrew Burns, lead author of the report, “How things actually play out over the next 20 years depends on governments taking steps to reduce oil dependence, promote alternative energy, combat climate change, and boost farm productivity.”

The world economy is entering a phase of slower growth, due to slower population growth, ageing in high-income countries and slower growth in some large fast-growing developing countries as income levels catch up. Also, technological progress has reduced the energy and food resources used per unit of GDP. China’s metal demand—which accounts for a global rise in metal intensity—is expected to stabilize, then decline in step with the rest of the world.

Demand in developing countries for new cars and trucks is likely to drive 75 percent of additional energy needs between now and 2030, so efficiency gains in transport are critical. These gains potentially include hybrid, electric, and hydrogen-powered cars.

With slowing population growth, the world is unlikely to run out of food. But supply might not keep pace with demand in some countries with fast growing populations, especially in Africa. These countries need to boost domestic agricultural productivity by improving rural road networks and increasing agricultural research and development.

Climate change could cause agricultural productivity to decline by as much as 25 percent by 2080 if nothing is done,” said Burns, “There is no reason for complacency and lots of room for policy action, including supporting improved technologies.”

Food prices will likely continue to be more sensitive to oil prices as a result of increased bio-fuel production from food crops. However, new technologies such as non-grain-based biofuels and other energy alternatives could make grain-based biofuels uneconomical.

Another key finding from the report is that commodity exports can promote growth given the right policies. In particular, the report notes that although resource-dependent countries tend to grow slowly, resource-rich countries tend to be high-income countries.

The report concludes that rather than commodity dependence causing slow growth and poverty, it is slow growth the failure to develop the non-commodity sectors of an economy that explains commodity dependence.

Resource-rich countries have managed their recent windfall revenues more prudently than in the past, and so are better prepared for the current decline in prices. But countries with new-found resources and those heavily reliant on bank lending may be at risk.

Finally, the report notes that high commodity prices—particularly of food—have had a profound impact on poverty, pushing 130 to 155 million people below the poverty line just between December 2005 and December 2007. The worst impact was in urban areas. While government policies reacted swiftly to offset the worst effects of the higher prices, many of these efforts were poorly targeted and expensive.

Looking forward, social assistance programs need to be better targeted so that the next time these programs are scaled up during a crisis, a much larger share of the aid reaches those most in need.” concluded Burns. “Action is also needed at the global level to discourage export bans of food grains, strengthen agencies like the World Food Programme, and improve information about and coordination of existing domestic grain reserves.

USDA Expects Massive Drop In Corn Used For Ethanol - Dec 13, 2008

2008-12-13T12:19:00.000+05:30

The US Agriculture Department's World Agricultural Supply and Demand Estimates released Thursday places corn used for ethanol production at 3.7 billion bushels, down 300 million bushels from the November estimate.

The December WASDE report also showed a 100- million bushel drop in exports from November, to 1.8 billion bushels. The drop in corn exports is more on target due to the weakening global economy.

USDA forecasts the average farm price for corn at $3.65 to $4.35 per bushel in the December report, down from $4.00 to $4.80 in the November report.

S.Korea Approves 11.5% Rise In Budget For 2009 - Dec 13, 2008

2008-12-13T12:17:00.000+05:30

South Korea's parliament on Saturday approved a 217.5 trillion won ($158.9 billion) state budget for next year, laden with spending to create jobs and steer the export-driven economy through the global financial crisis.

The ministry said the government will lay out 60 percent of the budget in the first half of next year.

The approved budget, up 11.5 percent from 2008, excluded public funds under the government's direct control.

Presidential spokesman Lee Dong-kwan said in a written statement that President Lee Myung-bak will hold a meeting with economy-related ministers on Sunday to discuss ways to carry out the budget ahead of schedule to revive the economy.

Parliament had missed the Dec. 2 constitutional deadline to pass the budget but it typically approves the plan just ahead of a Dec. 31 deadline.

Lawmakers have only approved a handful of the hundreds reform measures proposed by President Lee Myung-bak that include privatising state-run firms, reforming pension system and making it easier for companies to hire and fire workers.

Lee came to office in February looking to fundamentally change the world's 13th largest economy by modernising industry, expanding consumption and making the labour market more efficient so that South Korea could better compete with regional rivals such as China and Japan.

But infighting in his faction-ridden, conservative Grand National Party has delayed his reform agenda as well as his call to approve a sweeping free trade deal with the United States.

The liberal opposition has said his programmes offer more benefits to the wealthy than to the working class and the poor.

The global slowdown and weak domestic demand has increased the risks for an economy the central bank says is expected to grow only 2 percent next year, compared with 5 percent in 2007.

Trinidad Tobago Farmers Wait For New Price Structure - Dec 12, 2008

2008-12-12T14:37:00.000+05:30

According to Trinidad & Tobago's rice Growers' Association (RGA) president, Fazal Akaloo, rice farmers were growing impatient waiting for Agricultural Minister, Arnold Piggott to implement the new pricing structure for harvested rice.

While he said that the current prices offered ranged from between 60 cents to $1 per pound, depending on the grade of rice, he said that farmers, after years of turmoil had re-negotiated new prices between the range of $1.40 to $1.80 with the Agriculture Ministry earlier this year.

Floods Ruin Crop In Tamil Nadu Still Under Water - Dec 12, 2008

2008-12-12T14:34:00.001+05:30

The government of India's southern state of Tamil Nadu may have to buy food grains, especially rice, from the central pool to offset the huge losses in paddy crop as a result of the floods caused by cyclone Nisha. After the initial report of the agriculture department indicated that nearly 5 lakh hectares of paddy fields were damaged in cyclonic rain.

In Thiruvarur, a sizable portion of farmland is still under water. In Thanjavur, officials categorized damaged crops into three - crops to be immediately harvested, crops to be harvested in a fortnight, and crops spoilt. Initial estimates indicate that more than 50% of the harvest area could be fully or partially damaged, officials said.

Thailand Rice Seed Business Growing Rapidly - Dec 12, 2008

2008-12-12T14:33:00.000+05:30

The recent boom in the Thai rice industry has substantially increased the seed business of the Rice Department, with next year's sales volume targeted to grow by almost 30% from this year to reach 100,000 MT.A number of popular seed varieties are supplied to farmers at about 20% below market price to help farmers access high-quality seed and improve their yields.

Private companies such as CP and Pioneer Seed are key major suppliers of rice seed, including a hybrid variety with a retail prices five times higher than normal seed but a claimed yield of over 1,000 kilogram paddy per rai, compared with average yields of about 300 to 400 kg per rai.

Rusal Us Alscon To Start Domestic Sale Of Aluminium - Dec 11, 2008

2008-12-11T15:13:00.001+05:30

UC Rusal Alscon, a Nigeria-based aluminium smelter and member of UC RUSAL, the world's largest aluminium and alumina producer, has stated that it had started negotiating with key members of the Association of Primary Aluminium Producers (APAP) on domestic sales of aluminium ingots in Nigeria.

Last week, the company hosted top executives of the Nigerian aluminium industry to discuss and agree on terms and conditions for domestic sales of ALSCON-produced aluminium ingots in Nigeria. The ALSCON smelter, which fell dormant in 1999, was restarted by UC RUSAL this February as part of a US$300 million modernization programme. The smelter is already producing more than 1,000 tonnes of aluminium ingots per month and employs 800 people.

Mentha Futures Market Has Oil Swells On Buying - Dec 11, 2008

2008-12-11T14:40:00.002+05:30

Amidst bargain buying by traders and stockiest at lower levels enabled the mentha oil prices to garner some gains. Prices of mentha oil have been augmented by more than 2% in today's trading.Mentha futures market has echoed strong demand in today's trading on the account of sturdy buying by exporters and stockiest. Lower productions in current year, as per market estimates, the production of the mentha oil is likely to be around 27000-28000 tonnes in the current year, down 30% from the previous year.

Moreover, backwardation of more than 15% between spot and futures market has also witnessed some buying in futures market.Buying was also still persisted in spot market as prices have been trading at around Rs 608 per kg with gain of Rs 13 per kg at Chandausi market.

Guarseed Futures Slump On Strong Arrivals -Dec 11, 2008

2008-12-11T14:36:00.001+05:30

Speculators have liquidated their long position in today's trading in the wake of hefty stocks position coupled with favourable crop position in major growing states. Prices of guarseed have been plunged by Rs 5 per quintal in both spot and futures market in today's trading after hitting the high of Rs 1505 quintal.As per market sources, the total guarseed production of India is likely to be around 98-100 lakh bags , where Haryana will contribute 30 lakh bags.

Rajasthan 62 lakh bags and other ( Punjab and Gujarat )around 6-7 lakh bags. While the opening stock for the current year was at 25-26 lakh bags. Around 90000-100000 bags ( Haryana 55,000-60,000 bags , Hanumangarh and Sriganganagar around 120000-14000 bags )of arrivals are already seen in the market , which is likely to be exceed to 1.20 lakh bags in the coming days at higher levels.In today's trading, Guarseed January Benchmark Future has been slumped by almost Rs 6, quoted at Rs 1485 per quintal .

Chinese Steel Expected To Stabilize At Lower Levels - Dec 10, 2008

2008-12-10T15:44:00.000+05:30

Prices of China's steel products will stabilize at a lower level in 2009 to the age of high cost, high price, and high profit for the steel industry is gone, said Song Tianxiang, Sales Manager with Jigang Group Co. at a recent forum on China Steel Market Outlook. Song predicated China's steel industry would enter an age of meager profit in 2009 after the fallback and adjustment in the second half this year. Steels price is expected to wind above the cost, he added.

According to Song, steel market has run in downturn for five consecutive months, and is estimated to touch the bottom and rebound upon shrinking stockpiles in distribution and terminal customers. The strong growth momentum of energy industry will boost demand for high-tensile steel and pipe-line steel, despite dwindling demand from steels' downstream industries.

Liu Haimin, a researcher of Metallurgical Economic Research & Development Center, notes that as steel output decreases and inventories are on the verge of exhaustion, steel prices will be restored in the coming two to three months to stave off losses for large and midsize steel plants.In a long run, steel industry will maintain low profits by optimizing product mix and strengthening industrial concentration, and it's unlikely for the industry to tumble in the red for a whole year. Liu predicated China's steel consumption would not enjoy annual average growth of double digit in the future, and the industry will focus on optimization of product mix instead of quantity growth.

Gold Futures Scaled Up For The Third Consecutive Session - Dec 10, 2008

2008-12-10T14:50:00.000+05:30

Gold futures scaled up for the third consecutive session today following the rally in the crude oil prices and weakness in US dollar. The crude oil futures bottomed out from the low of $40.81 levels hit last week while the US dollar also lost some of its last week's gains against the Pound and single currency thereby making the gold stay higher. February dated COMEX Gold futures rallied further striking a high of $ 785 per ounce.

The $788 level should act as a crucial upside level and a move about that may result in a break of $800 mark. The lack of data releases from US this week and no major data releases from Europe may result in tight movement in the currencies and hence gold may also have sluggish movement. MCX Gold benchmark futures are also trading up Rs 39 at Rs 12388 per 10 grams. The intraday traders are recommended to enter long at current levels with the target of 12450 and 12580.

Russia Exported Nearly Prices For Grains To Stabilize - Dec 10, 2008

2008-12-10T14:32:00.001+05:30

Prices for all grains are going to stabilize on the Russian market. The Federal Service of State Statistics of Russia registered the decrease of prices for bakery products due to the reduction in flour prices. The market of fertilizers faced the same tendency, declared the Ministry of Agriculture on December 8.

The government of Russia plans to purchase nearly 5 mln tonnes of grains to the intervention fund from agricultural growers. Intervention prices exceed the current market prices by 30%, which provides additional profits to agrarians. To date, Russia exported nearly 10.5 mln tonnes of grains. The country plans to export 11.5 mln tonnes grains till the end of the current calendar year.

Spot Rubber Price Movement Remain Stable - Dec 10, 2008

2008-12-10T14:31:00.001+05:30

The rubber prices remained stable on Dec 9. There were no sellers in the market due to most of the traders were not willing to sell the raw material though there were no quantity buyers in the market even at these levels. Sheet rubber closed unchanged at Rs 59 a kg as on Dec 8.urthermore, rubber futures on the Tokyo Commodity. Exchange remained at lower although the nearby months moved up on short covering at the opening catalysed by Monday's late gains.

However, April and May contracts were worse hit on account of profit booking at higher levels on late trading. Besides, selling spread to the remaining contracts also, reflecting the weakness in other commodity futures. All contracts declined into the negative territory towards morning close. RSS 3 declined at its December futures to Yen 95.5 (Rs 50.70) from Yen 104.8, January to Yen 97.5 (106.5), February to Yen 98.7 (109.9), March to Yen 100.3 (113.3), April to Yen 102.7 (115.1) and May to Yen 105 (117.7) a kg at TOCOM. The grade's spot moved down to Rs. 55.74 from Rs 57.32 a kg at Bangkok. Spot rates were (Rs/kg): RSS-4: 59 (59); RSS-5: 57 (57); ungraded: 54 (54); ISNR 20: 56.50 (56.50) and latex 60 per cent: 44 (44).

Brazilian Coffee Crop Must Puts Brazil Coffee Million Bags - Dec 09, 2008

2008-12-09T14:13:00.002+05:30

The 2009/10 Brazilian coffee crop must stay at 38.25 to 41.20 million bags. That is what point the first survey by SAFRAS & Mercado to the 2009/10 crop, made through a research amid growers, agronomists, technicians,& cooperatives, agriculture secretariats, traders, warehouses, industrialists and exporters, amid other entities of the coffee-growing regions of Brazil. The average figure stayed at 39.73 million bags.

The 2008/09 production was slightly revised downwards by SAFRAS from 50.4 to 50.25 million bags. In the comparison between the 2009/10 and 2008/09 crops, SAFRAS so projects a production cut by18% to 24%.The total arabica production of 2009/10 was put at 27.55 to 29.70 million bags, down 22% to 27% from 2008/09 (37.85 million bags). The 2009/10 conillon crop was put at 10.7 to 11.5 million bags, down 7% to 14% in comparison with 2008/09 (12.40 million bags).

Soybean Crop In Brazil Coped Trading Hits 93% Safras - Dec 09, 2008

2008-12-09T14:11:00.001+05:30

The trading of the 2007/08 soybean crop in Brazil coped with slow-moving weeks, repeating the performance detected practically since the start of the season. Till the week ended on December 5, the S&M report pointed to a 93% trading, against 94% in 2007, and the normal average of 92%. Considering a crop estimated at 60.435 million tons, the volume of soybeans already committed amounts to 55.970 million tons.

Azerbaijan Harvested 2.5 Mln Tonnes Of Grains - Dec 08, 2008

2008-12-08T13:47:00.000+05:30

As of November 1, Azerbaijan completed harvesting campaign of grains and legumes (including maize) throughout 894.300 ha, the crop totaled 2.49 mln tonnes as opposed to 2 mln tonnes in the previous year, declared the State Statistics Committee of the country.Thus, the average yield totaled 27.9 c/ha, an increase of 0.8 c/ha compared to the previous year.Azerbaijan agrarians plan to sow 661.000 ha for winter crops, up 19% compared to the previous year, to date they sowed 386.900 ha under winter grains.

Castor Seed Lingers Around One Week Lows In Disa - Dec 08, 2008

2008-12-08T13:46:00.000+05:30

Castor Seed has opened lower in the cash markets today today, as the steady supplies in the major cash markets and overall weakness in the oilseeds complex off late had a ripple effect on the commodity. Spot quotes in Disa fell to a one week low of Rs 585 per 20 kg today, down Rs 2.40 from the previous close. The commodity has averaged Rs 591 per 20 kg in December, up 38% on a year on year basis.

Some industrial demand is supporting the castor oil prices but selling pressure seems to hurt the sentiments gravely at the moderate spurts following adequate stocks and steady arrivals. The Central Organisation for Oil Industry and Trade (COOIT) had projected a Kharif oilseeds output of 17.55 MT in its first advance estimate released on September 29. COOIT has pegged castor seed output at 1.07 MT.

Commodities Slipped On Account Of Slowdown - Dec 08, 2008

2008-12-08T13:45:00.001+05:30

New Delhi: Due to global economies meltdown, commodity prices in global markets have slipped by nearly 61% since July due to slowing demand, firm dollar and robust production estimates of farm items. Brent crude oil prices have declined over 60% to 53.24 dollars a barrel in November from 133.87 dollars in July, as industrial activities in major economies slowed down, according to a report by agri-commodity exchange NCDEX.

Similarly, while crude oil in Dubai witnessed a drop of about 61% to 51.38 dollars a barrel last month, the WTI crude oil fell nearly 57% to 57.29 dollars a barrel, it said. India imports 123 mn tones of crude oil a year, about 75% of its total domestic consumption. Investors, who viewed commodities as a hedge against inflation, are scrambling to get out, the report stated. Metals prices, too, came under severe pressure and slipped by up to 56%. Copper saw the maximum fall in prices to Rs 3,717 per tone from Rs 8,414 four months ago. Steel (rebar) prices have fallen by over 30% to 683 dollars a tone from 980 dollars during the period. Similarly, tin prices have dipped by 41% to 1,364 dollars a tone from 2,341 dollars.

Russian Grain Production Forecast Increased Of Rice - Dec 06, 2008

2008-12-06T12:30:00.002+05:30

According to the recent Russian State Statistical Service's data, Russia harvested 112.5 million tonnes of grain by the beginning of November 2008. Russia's total grain production forecast was increased by 2.1 million tonnes to 102.5 million tonnes, the U.S. Department of Agriculture's (USDA) Foreign Agricultural Service (FAS) recently said. The forecast includes 62.5 million tonnes of wheat, 22 million tonnes of barley, 6.2 million tonnes of corn (maize), 4.2 million tonnes of rye, 4.7 million tonnes of oats, 500,000 tonnes of millet and 708,000 tonnes of rice.

The FAS forecasts for wheat, barley, corn, rye and oats were slightly lower than official USDA forecasts, because of the increased gap between the bunker and the clean weight caused by inadequate storing of grain on farms shortly after the harvest. Russia's official data on grain crop has not been released yet.

Logistics, financial problems and tight competition in the foreign markets are expected to limit grain exports to 16.3 million tonnes, including 14 million tonnes of wheat, 2.1 million tonnes of barley, 150,000 tonnes of corn, and 65,000 tonnes of rye and rice. Grain prices remain low in Russia, the FAS noted. Grain traders are lobbying for emergency government measures to support grain exports.

By Nov. 24, 2008, Russia had exported 9.52 million tonnes of grain, including 8.48 million tonnes of wheat and 1.03 million tonnes of barley. From October – November, 2008, traders decreased grain shipments because of logistical problems and shortage of credit resources. The tight competition in the foreign markets and decreased financial resources of importers also limit Russia's exports.

Merrill Lynch Has Said Oil Prices Continue To Plummet - Dec 06, 2008

2008-12-06T12:27:00.001+05:30

The US investment bank Merrill lynch has said oil prices can slump to USD 25 a barrel next year before recovering in the second half of 2009. "With demand vanishing across all key oil consuming regions, benchmark crude oil prices continue to plummet," said Merrill Lynch. The new estimate was based on a global GDP growth forecast of 1.3% for next year, compared with 3% expected by Merrill Lynch economists in October, a scenario consistent with a global recession, they said.

The news came as the International Energy Agency cut its forecast for world oil demand in the next five years. The Paris-based agency had previously predicted 350,000 barrels a day. However, the agency said today that oil demand was expected to grow by just 220,000 barrels a day next year. The Paris-based agency, which advises 28 industrialized countries, also expects new investment in oil refineries to boost crude distillation capacity in the next five years at a faster pace than growth in demand. "Then, as economic activity starts to strengthen, we see oil prices posting a modest recovery in the second half of 2009.

It said the main downside risk to its estimates is the Chinese economy. Its economists currently forecast 8.6% growth for the world's second-largest economy next year. "In the short run, global oil demand growth will likely take a further beating as banks continue to cut credit to consumers and corporations," Merrill Lynch said. "We now expect an outright contraction in global oil demand in 2009."

Grain Exports Promising In North Africa Middle East - Dec 06, 2008

2008-12-06T12:24:00.001+05:30

Kurt Shultz, U.S. Grains Council (USGC) director for the Mediterranean and North Africa, said North African grain markets have been relatively unaffected by the world's financial turmoil. In terms of credit, Tunisia and Morocco have managed to comfortably stay afloat."I have talked to both Tunisian and Moroccan grain importers and feed millers to see if they have had any problems, particularly with accessing credit. Their equivocal response has been ‘no,'" Shultz said.

Tunisian and Moroccan banks have always had restrictions on the use of more complex financial instruments available in the international banking system; so in essence, they have been spared the problems the rest of the world is experiencing.U.S. distiller's dried grains with solubles (DDGS) and corn gluten feed (CGF) exports are benefiting from combination shipments with U.S. soybean meal, the USGC said. Morocco is expected to import over 85,000 tonnes of U.S. DDGS in 2008 versus 54,000 tonnes in 2007. In 2009, Morocco could increase its U.S. DDGS imports to 100,000-150,000 tonnes as end-users become increasingly familiar with the product.

A year and a half ago, due to a severe drought, Morocco waived duties on corn imports from all origins, increasing the competition against U.S. corn. Duties on soybean meal still favored U.S. origin, and U.S. DDGS and CGF have benefited as importers include them in combination shipments of soybean meal, DDGS and CGF. In June 2009, the Moroccan government is expected to re-impose duties on corn imports to 7%," Shultz said.

The USGC also said opportunities for U.S. grains exist in the Middle East and North Africa. Over the past year, volatile markets have caused global consumers and feed grain merchants concern over the availability of U.S. grain. In an effort to re-establish relationships with these end-users and addressed these concerns, the U.S. Grains Council hosted risk management training sessions throughout the Middle East and North Africa earlier this year. Last week the Council arranged for Jay O'Neil, a USGC consultant with the International Grains Program at Kansas State University, to hold one-on-one follow-up discussions on risk management and purchasing in light of current soft markets. "Most of this region [Middle East and North Africa] is uninformed about the risk management options available to them," said O'Neil.

O'Neil traveled to Amman, Jordan and Saudi Arabia to meet with local grain traders, importers and end-users. "The economy in Saudi Arabia is obviously very strong and the feed industry there is growing quickly. The economies of non-oil producing countries in North Africa are not as strong, however, and they have felt the effects of high commodity prices and historically high ocean freight costs. Most buyers in the Middle East and North Africa will benefit from seminars on risk management and the world supply and demand situation looking out into 2009-10," said O'Neil.

He reassured participants of the abundant supply of U.S. corn and feed grains, reminding them of the record highs in production and exports these past few marketing years. U.S. corn sales to Saudi Arabia reached one million tonnes (39 million bushels) in the 2007-08 marketing year, double the sales value of 2006-07 marketing year.

Cotton Prices Were Quoted Swell On Millers Buying - Dec 05, 2008

2008-12-05T14:48:00.001+05:30

Cotton prices were quoted steady across major market in India from last three trading session. Cotton price in Haryana and Punjab was quoted marginally higher by Rs.20-25 while it was quoted lower by Rs.100 in Guntur and Warangal Market. Fresh Arrival continue to increase daily. According to market sources cotton prices are likely to fall next week by Rs.50/- in the North and by Rs.500/- in the rest of the market due to increase in arrival pressure.

As per the latest data released by US Agriculture Department on Wednesday, India cotton output estimates remain at 24 million bales for 2008/09, but consumption and exports have been revised down,. Amid a global economic slowdown, exports are expected to drop 31 percent, to 5.1 million bales from 7.4 million bales last year, due to weak international cotton prices, the report said. Demand for cotton is forecast down by nearly 1 million bales from a year ago to 17.5 million bales. The marketing year began in June. Although late season planting in the central states and record planting in Andhra Pradesh have increased the expected harvest area, weather conditions will likely hold yields down.

India Jeera Regains On Weather And Low Inventories - Dec 05, 2008

2008-12-05T14:40:00.000+05:30

On account of bad weather over major growing areas and low inventories, India's jeera futures extended gains for the third straight session on Thursday. The sowing season began in the late October and will continue through December and rains and cloudy weather may hit output. Dwindling inventories are also supporting the market, said an analyst with Angel Commodities Broking Pvt Ltd. Warehouse stocks as of Dec. 2 were only 69 tones, compared with open interest of 8,898 tones, according to the data from National Commodity and Derivatives Exchange. Spot jeera was trading firm at 10,664 rupees per 100 kg in Unjha, a major trading hub in Gujarat.

Soybean Down On Supplies Malaysian Palm Support Prices - Dec 05, 2008

2008-12-05T14:36:00.002+05:30

On Dec 04, India soybean futures fell on account of weak international prices and a rise in supply at spot. Soybean is crushed to produce soyoil, which competes with palm oil. The prices of the two edible oils therefore often move in tandem. However, relisting soyoil after a gap of about 7 months restricted further soybean's losses in the Indian commodity exchanges.

Furthermore, Forward Markets Commission has allowed commodity exchanges to resume trading in four earlier-suspended commodities, according to Chairman P.C. Khatua. Additionally, lifting the official suspension on soyoil is a sign the government wants to support edible oil prices. Last month, the government re-imposed taxes on crude soybean oil imports and allowed limited exports of edible oils in an attempt to support prices.

Global Indonesia Cuts Benchmark For First Time In A Year - Dec 04, 2008

2008-12-04T13:50:00.003+05:30

In the Board of Governor's Meeting on Thursday, 4 December 2008, Bank Indonesia decided to lower the BI Rate by 25 bps from 9.50% to 9.25%. The central bank has cut the benchmark interest rate for the first time in a year since 6 December 2007, when the BI rates were slashed by 25 bps from 8.25% to 8.00%. The decision was taken on account of the ongoing global financial turmoil and the slowdown in the world.

Bank Indonesia places great importance on carefully targeting monetary policy market to strike a balance between growth and safeguarding of monetary stability.On the domestic front, inflation has begun to show a sign of slowing down though the November figure continues to remain in double digit at 11.68%.

Recent Fall In Global Metal Prices Forces The Largest - Dec 04, 2008

2008-12-04T13:47:00.001+05:30

The recent fall in global metal prices has forced the world's largest nickel miner, Norilsk Nickel International, to urgently consider an operational review of Tati Nickel Mine operations.We have been affected by the global financial crisis and the fall in the metal prices in particular," says Tati Nickel's Manager (for) Organizational Capability, Peter Meswele. Tati Nickel Mine, which recovers copper, nickel and cobalt, is located a few kilometres west of Francistown.

The mother company, Norilsk Nickel International, recently warned the likelihood of cutting production at its non-Russian assets, including Tati Nickel Mine. Nickel is currently trading at about one-fifth of its record price of $51,800 a tonne reached last May.

"We are busy toying around with cost reduction strategies and other means of reducing costs," Meswele says. "We will want interventions to be put in place to make sure that we survive." Tati Nickel Mine's employees have been warned of possible job losses. Management has also halted a possible resumption of mining at Selkirk Mine south of Phoenix Mine.

Chana Prices Slump On Stockiest Selling - Dec 03, 2008

2008-12-03T14:27:00.001+05:30

Sturdy sowing practices in major producing states of chana such as Madhya Pradesh, Andhra Pradesh and Karnataka owing to favourable temperature along with stockiest selling added some bearishness in physical markets from last one week. Prices of Kabuli Chana have been shaved off by almost Rs200 per quintal.As per latest data released by Ministry of Agriculture, the total sowing acreage of chana was at 61.96 lakh ha. against 52.45 lakh ha.

Reported last year in the same period. This was mainly on the account of heavy rainfall in Andhra Pradesh and Karnataka.The prices of chana have been shrugged off by almost Rs 200 per quintal in major trading stations. At Lawrence road, Kabuli quality chana was quoted at around Rs 3080-3100 per quintal . While the total daily arrivals have been hovering in the range of 8000-9000 bags. Prices are expected to remain weak in the coming days owing to sharp selling by stockiest.

Guntur Mandi Ended The Last Chilli Session - Dec 03, 2008

2008-12-03T14:25:00.000+05:30

The Red Chilli futures ended the last session with profits after plunged in the early trading session on Tuesday. The NCDEX Red Chilli futures benchmark December contract ended the last session with profit of Rs 5 at Rs 5361 per 100 kg. The December futures opened today's session with gain at Rs 5388 and spurted to the session high of Rs 5413 per 100, up Rs 52 and the open interest dropped 0.70 % to 1,420 lots from 1,430 lots as on last day, indicating short covering. The volume traded as of now stood at 25 lots. Technically the contract is having next resistance at Rs 5430- Rs 5460 and Rs 5500 and support at Rs 5340 and Rs 5300 per 100 kg.

The Red Chilli extended the last session gains on today in the local cash market. The Red Chilli price in the benchmark Guntur mandi spurted today nearly Rs 7.20 to Rs 5720.85 per 100 kg. The Red Chilli price in the benchmark Guntur mandi ended the last session with profit of Rs 8.90 at Rs 5713.65 per 100 kg.

Comex Futures Prices Fell To Early Rebound - Dec 03, 2008

2008-12-03T14:13:00.001+05:30

A spirited rebound from the days lows yesterday failed to extend in the early moves in Asia today as the commodity slipped and hovered around $780 mark for the benchmark COMEX futures. A combination of poor global economic releases and continued supply crunch in global markets. has failed to keep the commodity above $800 and most of the market participants. are surprised as to why the metal, has not been able to surpass its all time highs achieved earlier this year despite of the scenario turning in the favor of the commodity even further in the last few weeks.

COMEX Gold came off a high of $783.70 an ounce and currently trades at $778.10, down $5.20 an ounce. The counter may be expected to find a support around $771 mark. MCX Gold trades at Rs 12568 for the February 2009 contract; down Rs 39 from the previous closing price with 2.46% increase in the open interest. Dips account for a buy with Rs 12510 – 12520 acting as a crucial support.

Red Chilli Futures Continue In Red Benchmark - Dec 02, 2008

2008-12-02T14:10:00.001+05:30

The Red Chilli futures ended the last session with heavy loss on profit taking. The NCDEX Red Chilli futures benchmark December contract ended the last session with loss of Rs 61 or 1.13% at Rs 5356 per 100 kg on Monday. The futures extended the loss on Tuesday morning trading session and it traded with sluggish note. The December futures contract traded in the ranges of Rs 5349-Rs 5340 per 100 kg. The counter currently trades at Rs 5341, down Rs 15 from the last close and the open interest added 1.05% to 1,440 lots from 1,425 lots as on yesterday, indicating short selling.

The volume traded as of now stood at 60 lots. Technically the December futures contract is having next support at Rs 5320 and Rs 5300 and resistance at Rs 5370 and Rs 5430 per 100 kg.The Red Chilli recovered from the previous session loss today in the benchmark local cash market. The Red Chilli prices in the Guntur mandi in the state of Andhra Pradesh, ended the session lower Rs 20.20 at Rs 5704.75 per 100 kg as on Monday. The Red Chilli spurted nearly Rs 6.20 today to Rs 5710.95 per 100 kg.

Soybeans Down 1% As CPO Tumbles - Dec 02, 2008

2008-12-02T13:56:00.001+05:30

NCDEX Soybeans futures pared the recent gains today as frail global cues hurt the oils seeds complex and traders shunned away from entering fresh longs as a mammoth drop in the crude oil prices triggered concerns about the prospects of the commodities complex in general.

Soybeans ended near day's highs yesterday, gaining on the continued strength in the spot prices as the quotes in Indore hit a two-month high of Rs 1739 per quintal on stockists buying.

However, the futures retreated today, dropping below Rs 1700 a quintal in intraday moves. The commodity market participants were quick to note the latest drop in the crude oil prices. Oil fell to near a 3-year low below $49 a barrel Tuesday in Asia, as more bleak US economic news and plunging stocks markets darkened investor expectations for crude demand. Light, sweet crude for January delivery was down 1.28 cents to $48 a barrel in electronic trading.

The Malaysian CPO futures are also quoting lower by MYR 58 per tonne to MYR 1570 per tonne for the benchmark February contract.

NCDEX January 2009 futures are trading at Rs 1707, down Rs 13 per quintal or 0.76% with 3.24% decline in the open interest. Declines to Rs 1700 provide a good opportunity to enter long in the commodity.

Gold Glittering No More As Steep Losses Hurt Sentiments - Dec 02, 2008

2008-12-02T13:54:00.000+05:30

With the very first day of the last month of a landmark year bringing in an unprecedented sell-off in all the asset classes, Gold was also not spared and as the dollar strengthened below 1.2600 against the Euro and a rapid decline in oil prices hurt the sentiments further for the Gold bulls. The COMEX futures eased well below $800 per ounce yesterday, slumping nearly 5%. The slide has come as a shock for most of the market participants, which thought that the yellow metal was headed upwards given the utterly negative macro economic picture around the global and terrorist attacks in Mumbai

The COMEX February futures extended their losses further in the Asian trades today, touching a low of $763.40 per ounce and recovering afterwards. The counter currently trades at $771.70 per ounce, down $5.10 an ounce. The US dollar quotes at 1.2610 after hitting a high of 1.2581 earlier.

MCX Gold futures also eased as the December expiry extended a further negative influence on the commodity. The near month futures dipped to a low of Rs 12511 and currently trade at Rs 12535, down Rs 590 per 10 grams or 1.20% from the previous close with a massive 26% drop in the open interest.

MCX February contract trades at Rs 12537 per 10 grams, down Rs 591 or 1.14% with 1.30% decline in the open interest. The counter is expected to find a support around Rs 12490-510 levels.

Commodity Buoyancy An Extension Of The Reports - Dec 01, 2008

2008-12-01T15:13:00.001+05:30

The Malaysian CPO futures are trading higher today, approaching the MYR 1700 levels in intraday moves. The commodity witnessed an extension of the last few days buoyancy as reports that Indonesia is keeping its export tax on crude palm oil and its derivatives at nil in December supported the commodity. Export taxes on CPO and its derivatives were slashed to zero in November from a high of 20% a few months.

Ago to encourage exports of Indonesia's main commodity amid falling demand and lower prices.Export taxes on oil palm fruit and palm kernel remain unchanged at 40% in December - to encourage processing of the products into CPO and its derivatives locally.The February CPO futures on the Bursa Malaysia are quoting at MYR 1661 a tonne, up MYR 29 from the previous close after hitting a high of MYR 1675 a tonne.

Luggish Performance Of Inbound Tourism In Drag - Dec 01, 2008

2008-12-01T15:02:00.001+05:30

The value of total retail sales of Hong Kong increased by 0.3% in October 2008 over a year earlier. The retail sales weakened considerably further in October, as the adverse impacts of the global financial tsunami on consumer spending had increasingly set in. The sluggish performance of inbound tourism in that month also posed a drag.The value of total retail sales in October 2008, provisionally estimated at $20.8 billion, increased by 0.3% over a year earlier.

After netting out the effect of price changes over the same period, the volume of total retail sales decreased by 4.3% in October 2008 over a year earlier. However the revised estimate of the value of total retail sales in September 2008, at $20.9 billion, increased by 7.0% over September 2007, while the volume of total retail sales increased by 1.9%. Taking the first ten months of 2008 together, total retail sales increased by 12.7% in value or 6.4% in volume over the same period a year earlier.

Analyzed by broad type of retail outlet and comparing October 2008 with October 2007, the volume of sales of electrical goods and photographic equipment increased the most, by 6.0%. This was followed by sales of fuels (+5.5% in volume); furniture and fixtures (+4.0%) and miscellaneous consumer durable goods (+0.9%). On the other hand, the volume of sales of motor vehicles and parts decreased the most, by 23.9% in October 2008 compared with a year earlier.

This was followed by sales of jewellery, watches and clocks, and valuable gifts (-10.4% in volume); footwear, allied products and other clothing accessories (-8.7%); commodities in department stores (-5.9%); miscellaneous consumer goods (-4.3%); wearing apparel (-4.2%); commodities in supermarkets (-2.5%); and food, alcoholic drinks and tobacco (-2.1%).Based on the seasonally adjusted series, the volume of total retail sales in the three months ending October 2008 decreased by 1.4% compared with the preceding three-month period.

Hot Commodities Rape Mustard Seed On Arrivals - Dec 01, 2008

2008-12-01T14:59:00.001+05:30

The Mustard Seed futures extended the gains on today's trading session on strong demand and lower arrivals. The sowing of the Mustard Seed progressed well this year, this is not affecting the prices of the Mustard Seed on strong demand for the commodity and lower arrivals. The area under coverage of the Mustard Seed stood at 58.4 lakh hectare as on as on 27th November 2008 as against 52.81lakh hectare as on 27th November last year.

Mustard/Rapeseed cultivation is done widely throughout the world. It is basically a winter crop or Rabi crop in India and it requires a temperate climate to prosper. The planting season or the sowing period in India is during the Rabi season i.e. October to November. The crop starts flowering in the months of November, December, January and February. The harvesting period is from February to March. It needs a right proportion of rainfall that is provided by the monsoon during the sowing seasons of the crop. The rapeseed/mustard crop is actually acts as a very good cover of soil in winters.

The Mustard Seed finds good demand during lean arrival period. The arrivals of the commodity plunged in the major mandies. According to the latest updates from the Rajasthan State Agriculture Marketing Board, the Mustard arrivals in the Alwar mandi in the state dropped to the lowest ranges of 278-1114 quintals in the last week from the previous week arrivals of 842- 1370 quintals in the first two weeks of the month November.

The Rape Mustard Seed futures benchmark January contract on NCDEX spurted nearly Rs 8.55 or 1.47% to Rs 588.80 per 20 kg and the open interest spurted 0.93% to 67,230 lots from 66,610 lots as on last day, indicating fresh buying. The contract rallied nearly 12.47% from the recent contract low of Rs 523.50 as on 20th November 2008.The Rape Mustard Seed price in the benchmark Jaipur mandi in the state of the Rajasthan spurted today nearly Rs 0.90 Rs 633.30 per 20 kg. The commodity rallied nearly Rs 17.15 or 2.75% over the last week.

Pepper Futures Ended On Positive Note Due To Good Buying Support - Dec 01, 2008

2008-12-01T13:57:00.000+05:30

Pepper futures market saw high volatility during the week with the prices falling sharply on selling pressure and bearish activities and then recovering during the weekend on good buying support. The inherent strength of the Indian pepper viz., a strong domestic market, is appears to be playing its vital role to keep the pepper prices up even as the western markets are in the grip of severe credit squeeze consequent to the global economic recession on the one hand and the spreading of market depressing reports from overseas of increased availability in Indonesia on the other. All contracts on NCDEX dropped by Rs 462 to Rs 697 a quintal and on NMCE it was from Rs 499 to Rs 580 a quintal. Total turn over dropped by 9,202 tonnes to 23,476 tonnes. Total open interest during the week declined, by 970 tonnes, to 10,600 tonnes.

Spot prices, also in tandem with the futures market trend, fell by Rs 300 a quintal to close at Rs 11,000 (un-garbled) and Rs 11,500 (MG 1) on Saturday last. The recovery of the market at the weekend implies that the fundamentals continued to remain strong, market sources told Business Line. Indonesians are said to have admitted that the figures given by them at the International Pepper Community meeting held in the Vietnamese Capital during November 24 -27 were wrong. Black pepper availability, currently is understood to be in India and Brazil till the new Vietnamese crop hits the world market in late March-early April 2009. During the week the Pepper futures market saw high volatility with the prices falling sharply on selling pressure and bearish activities, but then recovered during the weekend on good buying support. The inherent strength of the Indian pepper viz., a strong domestic market, is appears to be playing a vital role to keep the pepper prices up even as the western markets are facing severe credit crunch consequent to the global economic recession on the one hand and the spreading of market depressing reports from overseas of increased availability in Indonesia on the other. All contracts on NCDEX dropped by Rs 462 to Rs 697 a quintal and on NMCE it was from Rs 499 to Rs 580 a quintal. Total turn over dropped by nearly 9,202 tones to 23,476 tones. Total open interest during the week declined, by 970 tones, to 10,600 tones.

Furthermore, Spot prices, also in tandem with the futures market trend, fell by Rs 300 a quintal to close at Rs 11,000 (un-garbled) and Rs 11,500 (MG 1) on Saturday last week. According to market sources, the recovery of the market at the weekend implies that the fundamentals continued to remain strong. Indonesians are said to have admitted that the figures given by them at the International Pepper Community meeting held in the Vietnamese Capital during November 24 -27 were wrong. Black pepper availability currently is understood to be in India and Brazil till the new Vietnamese crop hits the world market in late March-early April 2009.

South Korea Aims To Double Rice Products Market - Nov 28, 2008

2008-11-28T15:33:00.001+05:30

The government of South Korea is aiming to promote rice products in order to double the size of the country's sluggish rice industry that has been on a steady decline since 2002 as Korean tastes have diversified with escalating rice prices.Some of the plans include designating a particular day of the year for Korean rice cake or tteok is part of the plan. The idea is to get more people into chain restaurants that serve spicy Korean rice cake or tteokbokki.

By selling some older public rice stocks at cheaper-than-market prices, the government will encourage food companies to make more rice-made products such as chips, drinks and even ramyeon. South Korea's rice demand has dropped almost 8 % over the past five years from over 4 million MT consumed in 2002 to less than 3.8 million MT in 2007.

Chandausi Market Spurt On Short Covering Gain - Nov 28, 2008

2008-11-28T15:29:00.001+05:30

Amidst bargain buying by traders and stockiest at lower levels enabled the mentha oil prices to garner some gains. Prices of mentha oil have been augmented by more than 1% in today's trading.Mentha futures have echoed strong demand in today's trading on the account of sturdy buying by exporters and stockiest. Lower productions in current year, as per market estimates, the production of the mentha oil, is likely to be around 27000-28000 tonnes in the current year, down 30% from the previous year.

Moreover, backwardation of more than 10% between spot and futures market has also witnessed some buying in futures market. In today's trading, Mentha Oil MCX November Contract has been spurted by Rs 6 per kg , quoted at Rs 501per kg.Buying interest was also persisted in spot market. Spot prices have been trading at around Rs 540 per kg with gain of Rs 8 per kg at Chandausi market.

Augments On Strong Demand In Physical Market - Nov 28, 2008

2008-11-28T15:26:00.001+05:30

Turmeric prices have witnessed northward move in last trading session of the day on the account of bargain buying by traders and stockiest against restricted supply in spot market.Strong demand in spot market has maintained bearish sentiments in turmeric market as trader and stockiest have witnessed active participation at lower levels. On the other side, current situation is more tilted. towards bulls as waning stocks position, in the country against upcoming strong demand in domestic market.

Might keep the turmeric prices supportive at lower levels.The total stock position of Turmeric was at around 15.50 lakh bags, where Andhra Pradesh reported 6.25 lakh bags ,Karnataka 7 lakh bags , Maharashtra 1.80 lakh bags and others 0.45 lakh bags. On the other side , strong demand during the month of Se November to December might leave the carry over stocks of the country with only 3-4 lakh bags.

However, the total production of the current year is likely to be around 45 lakh bags from 44 lakh bags reported last year . Higher production was on the account of sturdy rise in sowing acreage in Tamilnadu , while some decline has been reported in Andhra Pradesh.In today's trading, the Benchmark December Turmeric futures were quoting at Rs 3860 per quintal, up Rs 20 in today's trading after hitting the intraday high of Rs 3881 per quintal.

Slipped Rubber Dominant From Additions Quotes - Nov 27, 2008

2008-11-27T14:48:00.001+05:30

On Nov 26, domestic rubber prices fell. Sheet rubber slipped from Rs 67 a kg to Rs 66. Additions to this, there were no fresh quotes from the major manufacturers. Transactions were at a low key. Rubber futures on the Tokyo Commodity Exchange opened lower even after declining six days. Going ahead, Bulls' liquidation was dominant on early trades amidst oil futures' decline and the yen's rise against the dollar. The three most distant contracts regained strength towards the morning close wiping out early losses but slipped back to the minus column once again in the afternoon.

In addition with this, the December futures for RSS 3 slipped further to 120(Rs 62.33) from 122.7 Yen, January to 122.3 (124.5) Yen, February to 124.8 (127.3) Yen, March to 126.4 (128.4) yen, April to 130.3 (131.2) Yen and May to 131.0 (132.8) a kg at TOCOM. RSS 3 (spot) declined to Rs 76.11 (Rs 78.94) a kg at Bangkok. Physical rates Rs a kg were: RSS-4: 66(67); RSS-5: 63.50 (64); ungraded: 61(62); ISNR 20: 63(63.50); and latex 60 per cent: 51(51).

Pepper Has Kept The Demand At Elevated Volumes - Nov 26, 2008

2008-11-26T14:36:00.001+05:30

The Black Pepper futures extended their morning losses in afternoon trading on the account of waning export demand coupled with long liquidation in futures market. Pepper futures have been plummeted by more than Rs 200 per quintal in today's trading.At international level, reeling concerns over liquidity issues have kept the chunk of international buyer silent. However, Strong demand by grinding industry and other dealers against.

Non-availability of black pepper has kept the domestic demand at elevated levels.The benchmark December contract has been plunged by Rs 280 per quintal, quoted at Rs 10920 per quintal in today's trading after hitting the low of Rs 10870 per 100 kg and the open interest has pared 0.040%, indicating fresh selling in futures market. The volumes traded as of now stood at 1981 lots.

European Union Were 3.30 Million Lower Shipments - Nov 26, 2008

2008-11-26T14:31:00.001+05:30

US steel imports increased to 2.69 million mt in October, up just 0.5% from September, according to preliminary data reported Tuesday by the US Commerce Department. The October total was 6.8% higher than 2.52 million mt in October 2007.All of the September-to-October increase came from imports of semi-finished products (mostly billet and slab) which increased by 7% to 562,140 mt, while imports of finished products declined by 4.5% to 2.13 million mt. For the January-October 2008 period, steel imports are down 5.6%.

The US imported a total of 24.76 million mt this year through October, compared with 26.23 million mt a year ago.The year-to-date trend for semi-finished products is down 5.8%, in line with the overall trend. All flat products are down by 9.1%, while rebar is down by 46.4%. Steel couplings and other products used in the oil and natural gas sector are up by 76.5%.Among finished product imports from January to October, rebar fell by 732,031 mt (-46.4%), while wire rod imports fell by 342,405 mt (-27.1%). Both of these products are subject to high tariffs, and imports were primarily diverted to the Middle East and Europe.

China's total exports of steel products is down about 30% this year, but exports to the US have increased in each of the past two months. October steel imports from China were up 25% sequentia lly, after a 15% increase in September. For the January-October 2008 period, China shipped 3.38 million mt of steel products to the US. That's only 9% lower than 3.72 million mt in 2007.Steel imports from the European Union were 3.30 million mt, or 15% lower than a year ago. South American shipments fell 44%, settling at 1.35 million mt compared with 2.40 million mt a year ago.

Full Metal Minerals High Grade Silver Drilling - Nov 26, 2008

2008-11-26T14:28:00.000+05:30

Full Metal Minerals said drilling at its eastern Alaska-based Fortymile property shows sections of high-grade zinc, lead, silver and copper. The areas intersected during the miner's 2008 drilling program include a 1.5-meter swatch grading 12.4% zinc, 30.0% lead, and 186.3 g/t silver, and another 1.2-meter region grading 24.8% zinc, 10.0% lead and 192.4 g/t silver.In addition, two drill holes on a southwestern.

Portion of the site showed in excess of 30% combined lead-zinc mineralization along with excellent silver and copper values," Full Metal said. The company said the Fortymile deposit is open for expansion in all directions. Full Metal said it has an option to acquire a 100% interest in the Fortymile iste from Doyon Ltd, an Alaska Native Regional Corporation. Under the agreement, the miner is required to pay Doyon $325,000 over six years.

Anglogold Ashanti Signs Loan Facility Agreement - Nov 25, 2008

2008-11-25T15:51:00.000+05:30

Anglogold ashanti announced the signing of a $1 billion loan facility Agreement with standard chartered bank to refinance its convertible bond Anglogold ashanti The term facility is available to be drawn during February 2009 for the purpose of repaying the $1 billion convertible bond due on 27 February 2009 issued by anglogold ashanti holdings plc and Guaranteed by anglogold ashanti. The term facility is for an initial one year period from the date of the first drawdown in February 2009 and the term facility is extendable, if required, at the option of Anglogold ashanti until 30 November 2010.

The terms and covenants of the term facility are similar to those of anglogold Ashanti's existing $ 1.15 billion revolving credit facility, save that the amounts drawn under the term facility will bear An interest margin of 4.25 percent for the first six months after the first drawdown and 5.25 percent thereafter.

Commenting on the signing of the term facility, CEO Mark Cutifani said, “during our third quarter Earnings release we said that we would be proactively addressing the refinancing of our convertible Bond, and we are pleased that we have secured the refinancing well in advance of the convertible bond becoming due and without seeking further support from our shareholders. The terms of the standard Chartered facility will, at a time when liquidity is scarce and markets are uncertain, improve our financial Flexibility and provide management with additional time to secure a longer term, cost-effective Refinancing while continuing to optimise and enhance operations and grow cash flow.

Supplies Prices Fall On Heavy Bodinayakannur - Nov 25, 2008

2008-11-25T15:48:00.000+05:30

Last week, the cardamom prices declined at the Kerala and Tamil Nadu auctions on account of heavy arrivals and shortage of labour at grading centres in Bodinayakannur. The average price slipped by Rs 100 a kg in a week to Rs 400 a kg on Nov 23. Besides, the average price at the previous weekend was Rs 500 a kg and from thereon the prices witnessed a steady decline in all the auctions.Aggravating , the situation was a severe shortage , of labour in the Bodinayakannur primary cardamom.

processing centre for cleaning and sieving /grading of the capsules, resulting delay in the dispatch of consignments to North Indian markets. As a result, there is a liquidity crunch as the upcountry dealers make the payments only on receipt of the waybill. Besides, almost all the workers engaged in this sector are women. Increased agricultural activity, following good northeast monsoon in this part of Tamil Nadu, is told to have moved them to take up jobs in the farms at higher wages.

Market Ended With Futures Registered A Turnover - Nov 25, 2008

2008-11-25T15:44:00.000+05:30

Pepper futures market ended with marginally up on Nov 24. The turnover also increased only 81 tones. Severe fluctuations in the market, has driven the small and medium players away from the market. Investors who were selling their validity expired stock at a discount of Rs 200-300 a quintal have reduced it to Rs 100 and at this rate there were no buyers. They were of the opinion that instead of buying it at the offering rate from the investors they could buy futures. Currently, most of the Kerala-based brokers told that their Dec position was full. Buyers have now adopted a wait and watch approach. On NCDEX, Dec contract surged by Rs 30 a quintal to Rs 11,672. Jan and Feb went up by Rs 48 and Rs 8, respectively, to Rs 11,780 and Rs 11,835 a quintal.

Going ahead, total turnover rose slightly by 81 tones to 2,708 tones. Total open interest dropped by 130 tones to 11,439 tones. Dec net open position fell by 196 tones to 5,763 tones while Jan declined by 53 tones to 4,635 tones. Feb moved up by 96 tones to 636 tones. Spot prices remained unchanged at Saturday's level of Rs 11,300 (un-garbled) and Rs 11,800 (MG 1). International market is quiet as the buyers are waiting and watching. The price trend in other origins would be known on Tuesday. Indian parity remained at $2,625-2,625 a tone (c&f).

Dubai Gold Sales In The UAE From Dh2.8 Billion - Nov 24, 2008

2008-11-24T14:24:00.000+05:30

Gold sales in the UAE soared 56 per cent in the third quarter compared to the same period of 2007, the World Gold Council said on Sunday. According to the WGC's regional office in Dubai gold sales in the UAE increased from Dh2.8 billion in the third quarter of 2007 to Dh4.3 billion this year. Gold sales in Saudi Arabia increased by 51 per cent, with sales growing by 42 per cent in other Gulf countries and by 33 per cent in Egypt in the third quarter.

As the grip of the global financial meltdown tightened around large economies in recent months many investors, banks and savers turned to gold to protect their assets. Many jewellery buyers also returned to the market in droves due to a lower gold price. In the UAE, some jewellery store shelves were emptied at that time of the precious metal as prices dipped. Tonnage demand for gold was also 18 per cent higher than last year.

"In Dubai, which is the single biggest market in the UAE, the fall in the gold price coincided with the Dubai Summer Surprises. Buyers who pulled back in Q2 due to concerns over the high gold price returned to the market. The Dubai Gold and Jewellery Group announced record sales during the DSS festival. "The Onam celebrations were also held during the quarter," said WGC Middle East's head of marketing Lama Al Saheb. "Jewellery demand also benefited from the shortage in bars and coins with consumers choosing to buy jewellery pieces for investment purposes. This shift in demand particularly benefitted low margin and low production cost items such as bangles and chains.

Aluminium Contract Not Showing Signs Of Volatility - Nov 24, 2008

2008-11-24T14:21:00.001+05:30

Trades in Aluminium have been non-volatile this morning. The prices plummeted by almost Rs 6 during last week. Aluminium contract for November expiry is now trading at Rs 86.65 per kg as we write. Supports for the contract are at 85 levels. Delivering additional bearish pressure to aluminum pries is huge buildup in LME aluminum inventories to the tune of 1724400 tons. On Shanghai the inventories are 202156 tonnes, increasing by 3411 tonnes during last week.

The collapse in global car sales in the US and now the EU will shrink demand this year and in 2009 as well to keep Aluminium prices on the knees. September was the worst month since 1993 in US with Auto sales dragging down below a million. A plethora of bad economic news drove a sales decline for every major automaker as total light-vehicle sales tumbled to 964873, down 26.6% compared with September 2007, sales.

U.S. auto sales for October are expected to tumble about 29% to their lowest level in nearly 17 years. October sales are expected to drop 9.4% from September. This is an expectation of one of the renowned online resource for automobile Edmunds. In European Union the car sales fell for the fifth consecutive month in September, the longest stretch since 2005, as higher fuel prices and financial-market turmoil reduced demand. India Auto Sales showed a dip of 6.6% in domestic sales in October. Domestic sales were at 98900 units as against 105877 units in the corresponding period last year.

Markets Speak Us Agrees For Rescue For Citigroup - Nov 24, 2008

2008-11-24T14:18:00.001+05:30

The US government agreed to a $306 billion rescue plan for Citigroup Inc in the latest attempt to bolster a financial services industry in turmoil. The plan announced on Sunday calls for Citigroup to obtain $27 billion of capital by issuing preferred shares. The shares carry an initial 8 per cent dividend, higher than the 5 per cent it charges dozens of other lenders under its $700 billion financial industry rescue package. Citigroup itself got $25 billion in the earlier package. Citigroup agreed to absorb the first $29 billion of losses on the $306 billion portfolio, plus 10 per cent of additional losses, for a maximum total exposure of $56.7 billion.

The Treasury Department could end up absorbing $5 billion, the Federal Deposit Insurance Corp $10 billion, and the Federal Reserve the rest. The bank will not have to make management changes, but agreed to tighter restrictions on executive pay, and to try to modify troubled mortgages in the $306 billion portfolio. It also cannot pay more than 1 cent per share in common stock dividends per quarter for three years without the Treasury Department's consent. The quarterly dividend is now 16 cents. "The US government is taking the actions necessary to strengthen the financial system and protect US taxpayers and the US economy," the Fed, the Treasury Department and the FDIC said in a joint statement.

Market Speaks Wheat Sowing Wheat Hectares - Nov 22, 2008

2008-11-22T12:22:00.000+05:30

Owing to delay in finalization of minimum support price (MSP) for the wheat crop along with late crushing of sugar cane crop in Uttar Pradesh has reduced the sowing acreage of wheat crop by almost 15% so far in the current rabi season.As per latest data released by Ministry of Agriculture, the total sowing acreage of wheat crop was at 83.78 lakh hectare against 84.99 lakh hectare reported last year in the same period. Sharp decline has been reported in states such as Uttar Pradesh and Madhya Pradesh.

As per market sources, government is planning to announce the minimum support price of wheat at Rs 1080 per quintal for the 2008-09 rabi crop. Last year, government has announced the MSP at the beginning of the rabi sowing period ( mid of October ), which resulted to strong production of wheat.

Shanghai Released Last Night Showed On Week China - Nov 22, 2008

2008-11-22T12:19:00.001+05:30

The near month contract of Copper looks to be a good buy if technical charts are taken into picture. MCX Copper contract for November expiry is trading at Rs 177 per kg up Rs 2. The prices can take further multiply to Rs 184 per kg from here. Supports for the contract are at 176 levels. Copper has confronted with major brunt from the bears in the last few months. The prices were in the range of 330 levels during August from where they have crashed to the current levels.

Copper is the most widely used industrial metal and with liquidity crisis across the world, the demand has been affected adversely. Inventories data from Shanghai released last night showed a week on week decline of 3797 tonnes to 17699, depicting that at these prices demand has started emerging from China.

However Prices Of Sugar Are Expected To State - Nov 21, 2008

2008-11-21T15:43:00.001+05:30

Punjab is likely to witness a drop of 32 per cent in sugar production in 2008-09 owing to sharp fall in area under sugarcane cultivation this year. This may also reduce the crushing period of sugar mills.As per market sources, Punjab's sugar production this year is expected to remain at 36 lakh quintals compared with 53 lakh quintals last year.This year, the total sugarcane acreage in Punjab stood at 93,500 hectares compared with 1.40 lakh hectares.

last year as farmers shifted focus to wheat and paddy crops in order to fetch better returns. In 2007-08, the acreage increased to 1.40 lakh hectares from 1.18 lakh hectares the previous year.

With fall in area under sugarcane cultivation, the total sugarcane output in the state fell to 514 lakh quintals this year against 800 lakh quintals in 2007-08. Since the availability of sugarcane in the state has come down sharply, the state is expecting to crush less cane this year compared to last year. This year, the cane crushing will be 386 lakh quintals compared with 576 lakh quintals last year.

With cane crushing exercise put in operational mode by state few days back, the sugar mills are expecting substantial drop in crushing days. According to the millers, Last year, the sugar mills crushed cane for 350 days but this year we feel that the cane crushing will fall to 120 days due to less availability of cane. However, prices of sugar are expected to remain firm this year due to low sugarcane output in the state.

Therefore in order to encourage farmers to bring more area under cultivation, Punjab government has raised State Advised Price for sugarcane to Rs 165, Rs 160 and Rs 155 per quintal for advanced, medium and late varieties respectively for 2008-09.

Malaysian CPO Futures Ended Mixed Far Losses - Nov 21, 2008

2008-11-21T15:40:00.001+05:30

Malaysian CPO futures ended mixed today, with the benchmark futures closing on a flat note. However, a selloff in the far month futures continued to ensure that a well-entrenched syndrome in the commodity stays around. The benchmark February futures ended at MYR 1469 per tonne, up MYR 1 from the previous closing price, recovering in intraday moves after plummeting to a low of MYR 1386 initially on a breathtaking slide in the crude oil prices.

The other far month contracts ended in red though, giving away MYR 12 and MYR 65 for the March and April delivers to close at MYR 1468 per tonne and MYR 1417 per tonne respectively.

Eurozone Services And Feverish Plummet Abroad - Nov 21, 2008

2008-11-21T15:38:00.000+05:30

Euro zone services and manufacturing business contracted at a feverish pace and faster than expected in November to new record lows as consumer and business demand collapsed at home and abroad. The Services PMI sunk to 43.3 from previous 54.1 while Manufacturing PMI plummeted to 36.2 from 52.8 and the Composite PMI tanked to 39.7 from 54.1. All three indices hit lows not seen in the survey history.

Market Of Maize In Most Of The North Indian Poultry - Nov 20, 2008

2008-11-20T13:47:00.001+05:30

Owing to remunerative prices of maize crop coupled with introduction of hybrid quality seed for maize might deliver record maize production in Punjab during the current kharif season.As per market sources, the total production of maize in Punjab is likely to be around 4.5 lakh tones during the kharif season , up almost 21% from last three year's average production. Higher production was mainly on the account of introduction of hybrid seed in almost 80-85% of the total area.

This might enhance the productivity of maize from 32 quintalsl to 35 quintals per hectare. Moreover, lower cost of production as it doesn't requires irrigation has also provoked the framers towards maize crop.Farmers are also benefited from ready market of maize in Punjab as most of the north Indian poultry industries are available in the same state.

Market Sources Most Of The Malting Companies - Nov 20, 2008

2008-11-20T13:40:00.001+05:30

Amidst lower offtake by malting companies and exporters against comfortable stock position in physical Market has kept the barley market silent from last one month.As per market sources, most of the malting companies were sidelined from last one month as most of the companies are sitting with hefty inventories. In Rajasthan mandies, the daily arrivals of barley are at around 2000-3000 bags with the price range of Rs 1080-1100 per quintal (exclusive of all taxes).

Moreover, lower prices of other feed items such Jowar ( Rs 880 per quintal ) and Bajra ( Rs 725 per quintal) have kept the feed demand silent.Sturdy sowing progress of barley crop during the current rabi season has also maintained bearish sentiments in spot market . As per latest data released by Department of Agriculture, the total sowing acreage of barley crop was at 1.23 lakh hectares against 0.30 lakh hectares.

Reported last year in same period. Strong sowing has been seen in states such as Rajasthan and Madhya Pradesh , swelled by 40% and 33% respectively.Therefore, the prices of barley are likely to remain under check in the coming days.

Saudi Arabia During The Favorable Macro India - Nov 20, 2008

2008-11-20T13:37:00.000+05:30

Exports of Cardamom are likely to move up this fiscal on account of softening domestic prices and reports of crop failure in other origins. Domestic prices have come down during the recent auctions due to increased arrivals and reduced demand from north Indian market. According to the figures of the Spices Board, Indian exports fell to 500 tones in 2007-08 as against 650 tones in 2006-07. India has lost traditional markets such as Kuwait, Japan and Oman to Guatemala while retaining Saudi Arabia.

During the current fiscal (April-September), favorable macro situation has facilitated India to increase cardamom exports by 10% in volume and 74% in value, as compared with performance of the same period of last fiscal. The target fixed by the Spices Board for the current fiscal is 550 tones valued around Rs 25 crore. However, the average auction prices have shown a declining trend with some late harvest in the crop bringing in increased volumes to the auctions.

Furthermore Rubber Tokyo Came Red Territory - Nov 20, 2008

2008-11-20T13:35:00.000+05:30

Kottayam: Rubber prices in the domestic market have further declined on Nov 19 as the major consuming industries kept their quotes much lower than Tuesday's closing levels. They withdrew from the market during the afternoon session as trend setting global indices finished in red. RSS 4 slipped sharply to Rs 70 from Rs 75.5 a kg while more and more growers and dealers joined the seller's row.

Furthermore, rubber futures on the Tokyo Commodity Exchange came down sharply into red territory on Nov 19 afternoon. The futures were mixed at the opening but sellers dominated the market from late morning to afternoon. The December futures was the only gainer on early trades, but the contract also slipped into negative zone in the afternoon.

RSS 3 declined further at its November contract to Yen149 (Rs 76.77) from Yen 156.2, December to Yen 147.5 (157.3), January to Yen 149.6 (161.5), February to Yen 151.5 (164.9), March to Yen 155.4 (166.6) and April to Yen 157.4 (168.5) a kg at TOCOM. But it (spot) firmed up marginally to Rs 88.81 (88.62) a kg at Bangkok.

World Food Prize Backs Up Cultivation In Jamaica - Nov 19, 2008

2008-11-19T14:41:00.001+05:30

Rice could be grown very well in Jamaica on positive rainfall and climate conditions and it is possible to get two crops per season in a given year, according to the acclaimed African agricultural scientist Dr Monty Jones, reports http://www.jamaicaobserver.com. While rice and peas is a famous Jamaican dish, Jamaica remains dependent on importing our staple food rather than local cultivation.

Dr Monty Jones has been grappling (since the 1970s) with the challenge of producing new, tougher and more productive rice varieties, helping subsistence farmers grow themselves out of poverty and his continent further away from the threat of famine.The visit of Sierra Leonean Jones, executive director of the Forum for Agricultural Research in Africa (FARA), winner of the 2004.

World Food Prize with his New Rice for Africa (NERICA) project and was included by Time magazine in it's list of the worlds 'Most Influential' in 2007, comes at a time when the Government of Jamaica is experimenting with rice growing to help meet its objective of raising agricultural productivity and food security. The government has already enlisted the help of China and Japan (both co-funded the development of NERICA) both have agreed in principle to provide grant funding and technical assistance, among other international partners.

Various rice varieties are being tested by the Ministry of Agriculture at its research facility in Bodles, St Catherine (which is being refurbished to house the planned Centre of Excellence) with lands earmarked for cultivation in that parish and St Elizabeth, should it prove feasible.

World Freight Prices Fall Off A Cliff Baltic Lowest - Nov 19, 2008

2008-11-19T14:34:00.001+05:30

Freight shipping prices for transporting dry raw materials collapsed in November slammed by the global financial crisis, slowing economic growth and falling commodity prices, industry experts said. The Baltic Dry Index, an indicator of economic trends which tracks the cost of moving goods such as coal, iron ore and grain across the oceans, has slumped over the past five months.

The index hit a record high of 11,793 points in May but has since fallen back to earth, hitting just 815 points last week -- the lowest level since the end of 1999.

Mustard Seed Futures Swell On Hike In Custom - Nov 19, 2008

2008-11-19T14:31:00.001+05:30

Bargain buying seen in mustard seed futures in today's trading on the account of steady movement in other oilseeds. Prices have been augmented by almost 1% in today's trading.In order to stimulate domestic edible oil industry from the steep decline in edible oil prices, finance ministry has levied a 20% custom duty on crude soyabean oil. This has prompted some buoyancy in oilseeds such as Soyabean and Crude palm oil.

Similar trend was also observed in mustard seed market as well. Prices of January Benchmark Furture have been augmented by almost 1% in today's trading and were trading at Rs 435 per 20 kg.However, bearish sentiments are still languishing in mustard market. As per latest sowing acreage released by Directorate of Oilseed, the total sowing acreage of mustard seed was stood at 46.89 lakh hectares against 31.84 hectares reported last year in the same period.

Major sowing acreage spurted in states like Rajasthan,Madhya Pradesh and Haryana as their sowing acreage swelled by 173% , 180% and 131% against the previous year's sowing acreage of the same period. The major rise was primarily on the account of higher prices of mustard seed throughout the year along with strong rainfall received during the kharif season.

On Account Of Heavy Selling Pressure Slipped - Nov 19, 2008

2008-11-19T12:36:00.001+05:30

Physical rubber prices slipped further on Nov 18 as major consuming industries withdrew from the market letting the prices to fall freely on an almost panic selling from dealers and growers. Further, sheet rubber RSS 4 closed extremely lower at Rs 75.50 a kg against Rs 79 a kg and the market made all-round declines along with moderate volumes. A sizeable portion of the NR produced in India is consumed by the automobile industry. According to Mr Sibi J Monippally General Secretary, Indian Rubber Growers' Association, any weakness to this industry will have adverse effect to the rubber sector as a whole, said.

The November contract for RSS 3 meltdown to Yen 156.2 (Rs 80.45) from Yen 158, December to Yen 157.3 (162), January to Yen 161.5 (166), February to Yen 164.9 (169.4), March to Yen 166.6 (171.6) and April to Yen 168.5 (174.3) a kg at TOCOM. The grade (spot) closed weak at Rs 88.62 (89.85) a kg at Bangkok.Spot rates were (Rs/kg): RSS-4: 75.50 (79); RSS-5: 73.50 (76); ungraded: 69.50 (72); ISNR 20: 74 (76.50) and latex 60 per cent: 56.50 (57).

Geera Prices Are More To Trigger Importers - Nov 18, 2008

2008-11-18T12:50:00.001+05:30

The Jeera futures near month contract slumped further on Tuesday morning trading on long position liquidation ahead of the expiry on weak demand. The NCDEX Jeera near month November contract ended the last session with loss of 0.82% at Rs 10,500 per 100 kg. On Tuesday morning trading, November futures contract slumped Rs 183 or 1.74% to the session low of Rs 10,317 per 100 kg and the open interest dropped 10.67% to 1,581 lots from 1,770 lots as on last day, indicating long liquidation ahead of expiry.

The counter currently trades at Rs 10,365, down Rs 135 or 1.29% from the last close. The volume traded as of now stood at 438 lots. The next support for the contract is at Rs 10300 and Rs 10,220 and resistance at Rs 10,550 per 100 kg.

The benchmark January contract traded in the ranges of Rs 10124-Rs 9900 per 100 kg and the counter currently trades at Rs 10060, up Rs 4 from the last close. The open interest added 2.89% to 6,882 lots from 6,690 lots as on last day.

The Benchmark Unjha mandi price slumped further on yesterday on weak demand. The commodity ended the last week with loss of 3.09% over the previous week. The jeera prices slumped further nearly Rs 56.25 or 0.55% over the last session to Rs 10618.75 per 100 kg on Monday.

The indicative Cumin Seed - Jeera (fob Kandla/Mundra) Prices in US$ PMT FOB port, India stood at Cumin Seed - Jeera (fob Kandla/Mundra) Machine Cleaned 99% - US$ 2275-2350 and Machine Cleaned - US$ 2550-2625. With the falling spot and futures prices of cumin and once again depreciating rupee, the jeera prices are more competitive to trigger the buying interest of overseas importers.

Commodity Should Edge Up From Hereon With A Target - Nov 18, 2008

2008-11-18T12:46:00.001+05:30

Crude oil futures neared $56 a barrel today, after falling initially in the early Asian trades. The commodity was getting influenced by bargain hunting and signs that the sharp pullback in the commodity off late might have been overdone. Yesterday, the U.S. Navy confirmed that a Saudi oil tanker was taken by Somali pirates off the coast of Kenya. Pirates also took a Japanese chemical tanker off the coast of Yemen.

OPEC's Monthly Oil Report said yesterday that they expect world oil demand to average 86.2 million barrels per day (mbd) in 2008 and 86.7 mbd in 2009. That is a little more than the U.S. Energy Department's estimate of 85.9 mbd in 2009.

In the commodity market, crude oil settled down $2.09 at $54.95 on Monday, the lowest settlement since late January 2007 as worries about the economic outlook in the United States and Japan stoked concerns about global fuel demand.

The commodity trades at $55.74 a barrel right now, gaining 79 cents from the previous close as the rebounded extended. The commodity had dipped to $55.93 earlier in the day and $56.10 and $56.70 should prove to be tough barriers on the upside.

MCX Oil trades at Rs 2840, down Rs 38 a barrel or 1.32% from the previous closing price. The commodity should edge up from hereon with a target of Rs 2865 –equivalent to its days highs. A break above would bring in Rs 2889 in picture.

Philippines National Food Authority 1 Million Tonnes - Nov 18, 2008

2008-11-18T12:42:00.001+05:30

The Philippines National Food Authority, NFA, is planning to procure 1 million MT of palay from local farmers in the year 2009 in order to further boost the country's buffer of the grain.The NFA buys clean and dry palay at P17 a kilo. For this year's main harvest, farmers get a cash incentive of P1,800 for every 50 bags of palay sold to the NFA.

According to the latest data from the Bureau of Agricultural Statistics showed that the NFA still holds the biggest volume at 933,400 MT, enough to last 28 days. Of the volume stocked in NFA warehouses, imported rice accounted for 90 %.

Rubber Sentiments Were Also Strike By A Closing - Nov 18, 2008

2008-11-18T12:39:00.000+05:30

Kottayam: Rubber prices have declined further on 17 Nov'08. The sentiments were also strike by a weak closing in global rubber futures and rumor that sheet rubber may hit Rs 70 a kg level shortly. Meanwhile, the grade declined to Rs 79 from Rs 81 a kg on last Saturday. Sources have informed that, the fresh quote from the tyre sector was even below at Rs 78 a kg for RSS 4. The rubber futures on the Tokyo Commodity Exchange slipped back on long liquidation at the opening amidst declines in oil futures and Yen's strength against dollar.

But covering purchases became active subsequently reflecting Yen's weakness on late trading. However, the market recovered the early losses partially towards the morning close.Prices moved in a narrow range during the afternoon. In futures, RSS 3 weakened at its November contract to Yen 158 (Rs 80.47) from Yen 164.5, December to Yen 162 (165), January to Yen 166 (167.2), February to Yen 169.4 (169.7), March to Yen 171.6 (172.3) and April to Yen 174.3 (174.7) a kg at TOCOM.

The grade finished marginally higher at Rs 89.85 (89.70) a kg at Bangkok.Spot rates were (Rs/kg): RSS-4: 79 (81); RSS-5: 76 (78.50); ungraded: 72 (74); ISNR 20: 76.50 (78) and latex 60 per cent: 57 (57).

Markets Was Still Stained After World Leaders - Nov 17, 2008

2008-11-17T13:45:00.001+05:30

NCDEX Sugar futures slipped by about a percent today as the market participants continued to track eh frail global cues and a sense of well entrenched weakness in the global risky assets arena. Oil prices tumbled under $56 a barrel today, providing traders much more impetus to sell the sugar futures. The activity in the global financial markets was still stained after world leaders laid out detailed proposals for restructuring the global financial.

system at an historic summit in Washington on Saturday, but fell short of offering concrete or coordinated fiscal action aimed at pulling the world economy out of its tailspin.The domestic sugar futures, meanwhile, hurtled down to a low of Rs 1772 a quintal – succumbing to selling pressure for a this consecutive session and recording its two week low on an intraday basis.

The counter trades at Rs 1780 per quintal right now, down Rs 13 a quintal or 0.73% with 6% decline in the open interest. The downside supports are around Rs 1770 and 1764 from hereon.