The Forward Markets Commission (FMC) is expecting the Central Government to do away with the ban on futures trading on four commodities next month. In May, the government had suspended futures trading in soyoil, potato, rubber and chickpea for four months, to control the soaring inflation. FMC had convened a meeting of representatives of trade and manufacturers associations, chambers of commerce and industry, marketing federations and co-operatives, in Bangalore on August 28.
Showing posts with label Bangalore. Show all posts
Showing posts with label Bangalore. Show all posts
Friday, August 29, 2008
Monday, February 11, 2008
Firm Trend In Gold Likely To Continue
Bangalore: Gold made sideways movement last week but a fact to note is that despite dollar gaining during the last two days of the week, it continued to rule firm.
In fact, this is seen by analysts as a breakaway from the usual trend where gold tends to fall whenever the dollar strengthens.
One of the reasons for the rising trend of the gold despite dollar strengthening, perhaps, could be that investors, mainly funds, do not repose much faith in the stock market.
Otherwise, why would gold gain 10 per cent this year, whereas stock and bond markets have declined?
Certainly, gold is in for testing times but it is likely that it will overcome these hurdles since investors are looking for a safe haven to secure their income.
• Quarterly results of corporates: Check out
A crucial announcement was made in Tokyo on Sunday at the Group of Seven industrialised nations’ meeting to sell the gold from the International Monetary Fund reserves from April 1 to overcome the current crunch deficit.
Such sales, in the normal course, could lead to fall in gold prices. But April is a long way off and a fall, if that happens, will only be temporary. The fall could only be to stabilise and bounce back even sharper, possibly to higher levels and as stated earlier in these columns, banks sales will all be gulped by the bulls in the market in no time.
Certainly, gold looks like it will rule firm. And $920 an ounce is seen as a firm support level for the yellow metal.
Two factors will help it to sustain this support. One is inflation and the other, the US recession.
Inflation
There is another development that is likely to happen in view of the US recession. The weakening dollar is already spelling trouble for the euro.
No doubt, the European Union is more keen on tackling inflation but how long will it do is the key here.
US recession
A strong dollar will only make Europe go the US way in recession and, therefore, experts see it attempting to weaken its currency to stimulate growth. That could see gold fortunes not hinging on the euro, which means the yellow metal could only head up.
In the short-term, gold could witness some sideway movements but it could be only a matter of time before it resumes its journey upwards.
Other precious metals
Meanwhile, platinum is seen as one that holds promise and very bullish. Silver, too, is seen gaining in tandem with gold.
On the domestic front, silver has broken the Rs 21,000-a-kg mark and there could be a further sharp rise in its prices. But, according to Dharmesh Bhatia of Kotak Commodity Services Ltd, it may not be sustainable and a correction is around the corner. Coal prices are also seen ruling firm due to power woes and China’s cold weather. But talk of recession could keep base metals subdued.
In fact, this is seen by analysts as a breakaway from the usual trend where gold tends to fall whenever the dollar strengthens.
One of the reasons for the rising trend of the gold despite dollar strengthening, perhaps, could be that investors, mainly funds, do not repose much faith in the stock market.
Otherwise, why would gold gain 10 per cent this year, whereas stock and bond markets have declined?
Certainly, gold is in for testing times but it is likely that it will overcome these hurdles since investors are looking for a safe haven to secure their income.
• Quarterly results of corporates: Check out
A crucial announcement was made in Tokyo on Sunday at the Group of Seven industrialised nations’ meeting to sell the gold from the International Monetary Fund reserves from April 1 to overcome the current crunch deficit.
Such sales, in the normal course, could lead to fall in gold prices. But April is a long way off and a fall, if that happens, will only be temporary. The fall could only be to stabilise and bounce back even sharper, possibly to higher levels and as stated earlier in these columns, banks sales will all be gulped by the bulls in the market in no time.
Certainly, gold looks like it will rule firm. And $920 an ounce is seen as a firm support level for the yellow metal.
Two factors will help it to sustain this support. One is inflation and the other, the US recession.
Inflation
There is another development that is likely to happen in view of the US recession. The weakening dollar is already spelling trouble for the euro.
No doubt, the European Union is more keen on tackling inflation but how long will it do is the key here.
US recession
A strong dollar will only make Europe go the US way in recession and, therefore, experts see it attempting to weaken its currency to stimulate growth. That could see gold fortunes not hinging on the euro, which means the yellow metal could only head up.
In the short-term, gold could witness some sideway movements but it could be only a matter of time before it resumes its journey upwards.
Other precious metals
Meanwhile, platinum is seen as one that holds promise and very bullish. Silver, too, is seen gaining in tandem with gold.
On the domestic front, silver has broken the Rs 21,000-a-kg mark and there could be a further sharp rise in its prices. But, according to Dharmesh Bhatia of Kotak Commodity Services Ltd, it may not be sustainable and a correction is around the corner. Coal prices are also seen ruling firm due to power woes and China’s cold weather. But talk of recession could keep base metals subdued.
Friday, February 8, 2008
Global Meet To Focus On Emerging Wheat Scenario
Bangalore: A two-day international wheat seminar that kicks off here on Friday will focus and analyse eventualities that will emerge in the foodgrains production, demand, nutrition and food security in 2020.
The seminar, Vision 2020, will see good participation of delegates from Canada, France, the US, Germany and West Asia, which would create opportunities for domestic participants to interact with the former, according to Vinod Kapoor, Chairman of the organising committee of the seminar.
Stocks at 28-year low?
Kapoor said the seminar will hold brain-storming sessions on prospects of wheat with the global prices rising 70 per cent in the last 12 months.
Wheat stocks at the end of the crop year (July 2007-June 2008) was expected to be at a 28-year low of 110.9 million tonnes (mt), he said quoting the US Department of Agriculture report.
• Quarterly results of corporates: Check out
A projected record production of 75 mt this year in the country would take care of the country’s annual demand of 62 mt and buffer stocks in April was expected to be 50 lakh tonnes, he said. This would also avoid the need for imports this year.
“By 2020, India requires an annual production of 92 mt and as on date, we are short by 17 mt. We need to spruce up production to meet the anticipated demand,” he said.
Output prospects
To a question on prospects of raising production, Kapoor said the Indo-Gangetic plain held good prospects where 20 million hectares were under wheat. “Currently, we are getting 2.5 tonnes of wheat a hectare and with better seeds and crop protection measures we can raise it to four tonnes,” he said.
The Centre’s National Food Security Programme, which is currently being implemented in many States, also targeted to top 80 mt of wheat by 2001, he added. On the trade side, Kapoor said traders were looking forward to a fair opportunity to sell or buy across the country.
Bangalore has been picked as the venue to host the seminar as it has emerged as an important centre for milling and backing. “ITC and Britannia, which are major consumers, are also based here for their wheat operations,” he said.
Global scenario
M.K. Dattaraj, President, Roller Flour Mills Federation of India, said the seminar would focus on international wheat situation and the issue of increasing productivity.
“We will discuss long-term policy to meet the situation that could arise in 2020, besides the issue of using foodgrains for bio-fuel,” he said.
Ravi Krishna, President, Society of Indian Bakers, said the Government authorities should appreciate the fact that wheat-based food products such as bread and biscuits were the cheapest and exercise control.
The seminar, Vision 2020, will see good participation of delegates from Canada, France, the US, Germany and West Asia, which would create opportunities for domestic participants to interact with the former, according to Vinod Kapoor, Chairman of the organising committee of the seminar.
Stocks at 28-year low?
Kapoor said the seminar will hold brain-storming sessions on prospects of wheat with the global prices rising 70 per cent in the last 12 months.
Wheat stocks at the end of the crop year (July 2007-June 2008) was expected to be at a 28-year low of 110.9 million tonnes (mt), he said quoting the US Department of Agriculture report.
• Quarterly results of corporates: Check out
A projected record production of 75 mt this year in the country would take care of the country’s annual demand of 62 mt and buffer stocks in April was expected to be 50 lakh tonnes, he said. This would also avoid the need for imports this year.
“By 2020, India requires an annual production of 92 mt and as on date, we are short by 17 mt. We need to spruce up production to meet the anticipated demand,” he said.
Output prospects
To a question on prospects of raising production, Kapoor said the Indo-Gangetic plain held good prospects where 20 million hectares were under wheat. “Currently, we are getting 2.5 tonnes of wheat a hectare and with better seeds and crop protection measures we can raise it to four tonnes,” he said.
The Centre’s National Food Security Programme, which is currently being implemented in many States, also targeted to top 80 mt of wheat by 2001, he added. On the trade side, Kapoor said traders were looking forward to a fair opportunity to sell or buy across the country.
Bangalore has been picked as the venue to host the seminar as it has emerged as an important centre for milling and backing. “ITC and Britannia, which are major consumers, are also based here for their wheat operations,” he said.
Global scenario
M.K. Dattaraj, President, Roller Flour Mills Federation of India, said the seminar would focus on international wheat situation and the issue of increasing productivity.
“We will discuss long-term policy to meet the situation that could arise in 2020, besides the issue of using foodgrains for bio-fuel,” he said.
Ravi Krishna, President, Society of Indian Bakers, said the Government authorities should appreciate the fact that wheat-based food products such as bread and biscuits were the cheapest and exercise control.
Flour Millers See No Benefit From Futures Trade
Bangalore: Roller flour millers, the major consumers of wheat in the country, are not worried about the freezing of futures trade in food grains, particularly wheat.
“Futures trade is to hedge risk for producers and buyers. We have over 1,100 flour mills in the country and 2,000 chakkis (grinding mills) who deal in wheat. But we are dependent on our buyers. When they are hedging their positions, we do not feel compelled to take part in futures trade,” said Vinod Kapoor, Chairman of the organising committee of the fourth international seminar on wheat.
“The major deciding factor in wheat price is demand-supply. We don’t see futures market following fundamentals. There is a consensus among roller flour mills that we will not take part in futures trading,” said M.K. Dattaraj, President, Roller Flour Mills Federation of India.
Reasons
One of the reasons why the millers are not interested in futures is that apart from the procurement period, the wheat market is “fairly unregulated”. “All regulations of wheat trade are present only during the procurement between April and June. After that, the farmers are free do anything with their stocks and even sell without paying tax,” Kapoor said. “Such circumstances do not hold prospects for us in futures trading,” he said.
Dattaraj said 2007-08 did not witness any unprecedented rise in wheat prices, despite the absence of a forward market.
• Quarterly results of corporates: Check out
“We have put forth our views to the Abhijit Sen panel which is examining futures trading in foodgrains,” Kapoor said. “On the other hand, a section of growers want futures trade. We have nothing to say on that and it is entirely up to them,” he said.
The Centre, worried over rising prices of wheat and pulses, froze futures trading in wheat, rice, urad and tur in March last year. The Finance Minister, P. Chidambaram, in his budget speech, said a panel headed by Dr Abhijit Sen would go into futures trading in essential commodities. Initially, the panel was given two months time but till now, it is yet to finalise or submits its report.
Bourses such as the NCDEX and the MCX are keen on revival of futures trading in grains and pulses as the freeze has affected their turnover.
“Futures trade is to hedge risk for producers and buyers. We have over 1,100 flour mills in the country and 2,000 chakkis (grinding mills) who deal in wheat. But we are dependent on our buyers. When they are hedging their positions, we do not feel compelled to take part in futures trade,” said Vinod Kapoor, Chairman of the organising committee of the fourth international seminar on wheat.
“The major deciding factor in wheat price is demand-supply. We don’t see futures market following fundamentals. There is a consensus among roller flour mills that we will not take part in futures trading,” said M.K. Dattaraj, President, Roller Flour Mills Federation of India.
Reasons
One of the reasons why the millers are not interested in futures is that apart from the procurement period, the wheat market is “fairly unregulated”. “All regulations of wheat trade are present only during the procurement between April and June. After that, the farmers are free do anything with their stocks and even sell without paying tax,” Kapoor said. “Such circumstances do not hold prospects for us in futures trading,” he said.
Dattaraj said 2007-08 did not witness any unprecedented rise in wheat prices, despite the absence of a forward market.
• Quarterly results of corporates: Check out
“We have put forth our views to the Abhijit Sen panel which is examining futures trading in foodgrains,” Kapoor said. “On the other hand, a section of growers want futures trade. We have nothing to say on that and it is entirely up to them,” he said.
The Centre, worried over rising prices of wheat and pulses, froze futures trading in wheat, rice, urad and tur in March last year. The Finance Minister, P. Chidambaram, in his budget speech, said a panel headed by Dr Abhijit Sen would go into futures trading in essential commodities. Initially, the panel was given two months time but till now, it is yet to finalise or submits its report.
Bourses such as the NCDEX and the MCX are keen on revival of futures trading in grains and pulses as the freeze has affected their turnover.
Friday, January 18, 2008
Unit Value Of Coffee Exports Declining
Bangalore: The International Coffee Organisation (ICO) has said the unit value of exports has been falling constantly for a number of coffee producing countries including India. The ICO has also revised world coffee production from 114 million bags to 116 million bags and has expressed concern over weakness of the US dollar. Coffee exports in November 2007 were seven million bags, bringing total exports for the first 11 months of 2007 to 87.4 million bags, an increase of 4.4 per cent compared to the same period in 2006. As for the prices, they rose sharply in December 2007, particularly in the Arabica variety, with the monthly average of the ICO composite price standing at 118.16 cents a pound compared with 114.43 cents a pound in November 2007. While Robusta prices were slightly down in December, they remained firm and broke the $1 barrier on January 11, 2008, for the first time in nearly 12 years. The price of 100.35 cents for Robustas on January 11 is over 363 per cent higher than the price of 21.65 cents on October 11, 2001. The country's production in 2007-08 was 33.7 million bags, comprising 23.5 million bags of Arabicas and 10.2 million bags of Robustas.
Thursday, January 17, 2008
Global Wheat Meet To Focus On Output
Bangalore: An international seminar, “Wheat and wheat products - Visions 2020”, will be held here on February 8 and 9 to focus on strategies in production, trade distribution and consumption in a global perspective.
The meet is being organised jointly by the Wheat Products Promotion Society, the Roller Flour Milers’ Federation of India, the Karnataka Roller Flour Mills Association, the All-India Bread Manufacturers and the Society of Indian Bakers.
With the wheat markets having witnessed a price increase of more than 70 per cent in 2007, the low year ending stocks and future scenario of wheat demand and supply, and wheat perspectives have to be viewed in this context.
Change in food habits
An increasing trend in changing food habits following the robust economic growth is resulting in higher disposable income and has also brought to focus the issue of production of quality wheat for food and nutritional security.
• Check out our Yearender Special
The meet will discuss an entire gamut of issues in production, quality and distribution, with a particular focus on India’s increasing influence on international wheat trade, said the Wheat Products Promotion Society.
Separate technical sessions will be addressed by policy makers and experts, who include, T. Nanda Kumar, Secretary Department of Food, Consumer Affairs & Public Distribution, Alok Sinha, Chairman, Food Corporation of India, and other senior officials.
A large number of delegates from Canada, the US, Germany, Singapore and West Asia are also expected to participate in the meet, while farmers groups, major Indian traders in commodities, principal commercial buyers, processors at the primary level and manufacturers of wheat-based consumer products will bring out the trends in inter-relationships between the buyers and sellers.
The meet is being organised jointly by the Wheat Products Promotion Society, the Roller Flour Milers’ Federation of India, the Karnataka Roller Flour Mills Association, the All-India Bread Manufacturers and the Society of Indian Bakers.
With the wheat markets having witnessed a price increase of more than 70 per cent in 2007, the low year ending stocks and future scenario of wheat demand and supply, and wheat perspectives have to be viewed in this context.
Change in food habits
An increasing trend in changing food habits following the robust economic growth is resulting in higher disposable income and has also brought to focus the issue of production of quality wheat for food and nutritional security.
• Check out our Yearender Special
The meet will discuss an entire gamut of issues in production, quality and distribution, with a particular focus on India’s increasing influence on international wheat trade, said the Wheat Products Promotion Society.
Separate technical sessions will be addressed by policy makers and experts, who include, T. Nanda Kumar, Secretary Department of Food, Consumer Affairs & Public Distribution, Alok Sinha, Chairman, Food Corporation of India, and other senior officials.
A large number of delegates from Canada, the US, Germany, Singapore and West Asia are also expected to participate in the meet, while farmers groups, major Indian traders in commodities, principal commercial buyers, processors at the primary level and manufacturers of wheat-based consumer products will bring out the trends in inter-relationships between the buyers and sellers.
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