WEEKLY AGRI REPORT-15 Sep To 20 Sep 2014

CHANA

Chana fell on hopes of bumper production from the winter-sown crop due to good rainfall in the top producing state of Madhya Pradesh, comfortable supplies in the physical markets. However, lower level demand and festive buying cushioned the downside. According to the Ministry of Agriculture, sowing of kharif pulses as on 4th September stands at 9.72 mn ha as against 10.37 mn ha last year.

TURMERIC

The NCDEX Turmeric futures eased amid higher sowing in Telangana and huge carryover stocks and demand worries as spot prices continued to decline from a six month highs. Arrivals are steady but the demand from North Indian traders is thin and only good quality produce is witnessing some pick up. Sowing of Turmeric in AP for the 2014-15 season is reported at 0.113 lakh ha, as against 0.09 lakh ha last year and a normal sowing of 0.15 lakh ha. The area in Telanaga stood at 0.444 lakh ha against 0.42 lakh ha last year.

JEERA

Jeera futures scaled new contract lows on record stocks in local mandies along with limited buying by traders and exporters. Heavy stocks of around 61 lakh bags in local mandies will encourage stockiest selling at every spurt in local prices. The total stocks in local mandies were almost double of the previous year's level of 30 lakh bags due to record production in the last season. Fresh supplies in international market have reduced the traders demand in local mandies.

SOYBEAN & SOY COMPLEX

Indian vegetable oils and oilseeds futures rose, propelled by overseas markets, and palm oil futures surged on signs that demand may jump after a rise in exports. Malaysian palm oil futures edged up to touch their highest in over three weeks on Friday, with prices recording a second straight weekly gain.Indian soymeal exports plummeted in August and are expected to remain weak until the yearend when the new crop arrives, as poor supplies and high prices of the animal feed drive traditional buyers away from the leading Asian supplier.As per the latest release from the United States Department of Agriculture (USDA),global oilseed production for 2014/15 is projected at 528 million tons, up 6.20 million from last month. Total world crushing demand is estimated at 428.87 million tonnes, up 2.03 million tonnes from August month. Global ending stocks projected higher by 4.07 million tonnes to 103.66 million tonnes. The global soyabean supplies are estimated higher at 311.25 million tonnes in 2014/15, up 6.56 million tonnes due to strong production in US. The data has reduced the Indian soyabean production estimated unchanged at 11 million tonnes in 2014-15.

CASTOR SEED

Castor seed to decline due to recovery in kharif sowing coupled with weak export demand of castor meal in local mandies. The latest data release by Ministry of Agriculture stated that castor seed kharif oilseeds have been sown only on 5.52 lakh hectares compared with 4.89 lakh hectares last year. This was mainly due to strong sowing in Gujarat. The prices will also dampened by weak export demand of castor meal in local mandies. The Solvent Extractors' Association of India overall export of oil meals during July 2014 is reported at 0.20 lakh tons compared to 0..25 lakh tons in April 2013 i.e. down 4 percent.

SUGAR

Sugar futures fell on large domestic supplies and lower-than-expected demand. Food Minister Ram Vilas Paswan said on Wednesday India's 2014/15 sugar output will not be less than the annual demand despite apprehensions that mills in the biggest cane producing state of Uttar Pradesh will not start operations in the new season beginning October. In the next few weeks, India will celebrate the festivals of Dussehra and Diwali, a time when sugar demand goes up.

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