Friday, February 11, 2011
Canada regains favour among Egypt's wheat buyers
Canada, which has got into difficulty meeting Japanese wheat import term, has regained favour with the world's top buyer, winning its first shipments to Egypt through tender in four months.
Egypt's main state-run grain buyer, the General Authority for Supply Commodities (Gasc), said after its second wheat tender in less than a week that it was to take 170,000 tonnes of the cereal, with origin split between Australia, Canada and the US.
The awards to Australia and the US followed the recent pattern, since dwindling stocks accelerated price rises in wheat from France - Egypt's default grain trade partner thanks to its position at the other end of the Mediterranean.
However, Canadian wheat has not won at an Egyptian tender since October.
Indeed, Canada triggered doubts over its ability to compete on quality last month when it failed to fill a tender from Japan, its fourth-largest customer, because of concerns over whether wheat protein levels would reach the circa-13.5% required.
East vs west
Canada's ability to meet the cut with Gasc, which also enforces stringent protein requirements, appeared to reflect the Jekyll and Hyde nature of the country's harvest last year, Macquarie analyst Alex Bos said.
The grain which missed out on Japan was spring-sown wheat from the west of Canada, the home to the main agricultural states such as Saskatchewan, where both the quality and the quantity of last year's crop were damaged by heavy rains.
However, Egypt had purchased soft red winter wheat from the east of the country, which had missed out on weather damage.
"They had a greater winter wheat crop in Ontario," Mr Bos said.
"They have the supply just when the world is calling out for wheat," he said.
Priced out
The winning Canadian wheat was offered, by Nidera, at $358.50 a tonne, excluding shipping costs of $27-28 a tonne.
The cheapest French wheat was tendered by Louis Dreyfus at $378.74 a tonne, without freight costs.
Gasc has not bought French wheat at tender since early December, when it paid Glencore $324.50 a tonne, excluding shipping.
Japan a week ago resumed purchases of west Canadian wheat, with the Canadian Wheat Board offering 37,000 tonnes with a guaranteed minimum protein level of 13.3%.
(Source: http://www.agrimoney.com/news/canada-regains-favour-among-egypts-wheat-buyers---2814.html)
Wheat and corn futures rise on the CBOT; beef and pork prices mixed
CHICAGO (AP) - Grains futures traded mixed Friday on the Chicago Board of Trade.
Wheat for March delivery gained 4.25 cents at $8.67 a bushel; March corn added 8 cents at $7.0650 a bushel; March oats fell 1 cent at $4.18 a bushel; while soybeans for March delivery fell 17 cents at $14.16 a bushel.
Beef and pork traded mixed on the Chicago Mercantile Exchange.
April live cattle fell 0.37 cent to $1.1270 a pound; March feeder cattle was up 1.20 cent at $1.2602 a pound; April lean hogs fell 1.33 cent at 92.37 cents a pound; while February pork bellies were unchanged at $1.1700 a pound.
(Source: http://www.canadianbusiness.com/markets/market_news/article.jsp?content=D9LAQNE00)
Govt lifts export ban on non-basmati rice
The government today allowed the export of three varieties of non-basmati rice grown in the southern states in anticipation of bumper crop production this year.
Partially lifting a three-year old ban, the government has permitted exports of 'Ponni Samba' and 'Matta' varieties of basmati, subject to a cap of 25,000 tonnes each, while shipments of 'Sona Masuri' have been permitted with a cap of 1,00,000 tonnes, the Directorate General of Foreign Trade (DGFT) said in a notification.
"Certain varieties of rice (Sona Masuri, Ponni Samba and Matta) are permitted to be exported with a limit on quantity of export for the KMS (Kharif Marketing Season), 2010-11," the DGFT said, adding that the export ban continues on other varieties.
Exemptions from the export ban would also be contingent upon the value of shipments exceeding $850 per tonne.
These varieties are grown in Tamil Nadu, Kerala, Andhra Pradesh and Karnataka.
According to the Agriculture Ministry, rice production will rise to 94 million tonnes in the 2010-11 crop year from 89 million tonnes in the previous year.
The DGFT, an arm of the Commerce Ministry responsible for export and import-related matters, said that overseas shipment of two varieties of onions has also been permitted, subject to a licence.
"The export of Bangalore Rose onions and Krishnapuram onions is now restricted and their export shall be permitted under licence," it said, adding that the ban on exports of other varieties of onions will continue.
The government had banned the export of onions early this January to rein in soaring onion prices, which touched Rs 70-85 per kg on December 21, 2010, in retail markets of major metros.
The decisions were taken on Wednesday by an Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee.
(Source: http://www.business-standard.com/india/news/govt-lifts-export-bannon-basmati-rice/125434/on)
Wheat tumbles on production estimates
Wheat futures traded slightly positive on Thursday in a very narrow range. The movement was restricted by the revised production estimates and the sluggish spot market activities. This kept the prices away from any steep losses or gains.
U.S. wheat futures declined towards the yesterdays closing due to the strong dollar and the liquidation f the positions. There are no fundamentals which is supporting the fall.
The fundamentals are strengthened due to demand potential from North Africa and Middle East countries. UN reports of the potential crisis in china due to drought in the wheat growing areas supported the CBOT wheat futures to rally.
The increase in the prices and volume while the open interest is decreasing indicates that the prices be subjected to correction which might be good buy point for the uptrend. The basis of the wheat prices is recovering which is expected to continue for the day.
Outlook
The wheat futures are anticipated to open positive and resume the down trend as the prices don’t find any support from the spot markets. Currently the CBOT prices are trading negative by 0.4%.
Fundamentals
The demand and the arrivals across the spot markets are not much prominent. The acreage under wheat has in-creased by 9 lakh ha in the current rabi season. According to second advance estimates the production of wheat is estimated at 81.47 million tons compared to 80.80 million tons last year.
Wheat drops on ample supply
Wheat yesterday traded with the negative node and settled -0.06% down at 1306 on reduced offtake against adequate stocks.
We are likely to achieve record production of wheat (81.47 MT), pulses (16.51MT) and cotton (33.9 million bales of 170 kg each) this year," agriculture minister Sharad Pawar told. In Delhi wheat prices gained 4.4 rupee to end at 1330 rupees per 10 kg.
In yesterday's trading session Wheat has touched the low of 1301.8 after opening at 1306.6, and finally settled at 1306.
For today's session market is looking to take support at 1301, a break below could see a test of 1296 and where as resistance is now likely to be seen at 1311.8, a move above could see prices testing 1317.6.
Trading Ideas:
Wheat trading range is 1295.9-1317.5.
Wheat settled down on reduced offtake against adequate stocks. We
Wheat is having resistance at 1312 and support at 1301 level.
The total sowing acreage of wheat reported at 291.80 lakh hectares on 04th, February 2011.
In Delhi wheat prices gained4.4 rupee to end at 1330 rupees per 10 kg.
(Source: http://www.commodityonline.com/futures-trading/tradingtips/Wheat-drops-on-ample-supply-11645.html)
Vietnam to stockpile 1 million tons of rice
Hanoi - Vietnam, the world's second-largest rice exporter, plans to stockpile 1 million tons of rice to help sustain the market for farmers amid low prices, authorities said Friday.
Truong Thanh Phong, chairman of Vietnam Food Association said the plan was agreed between the association and its 60 members Thursday.
Exporters have not been eager to buy rice from farmers because they have signed few contracts with importers, so the price of rice has been low as farmers in the Mekong Delta begin harvesting.
Under the association's plan, exporters would begin buying and the price would increase.
Those companies are to offer prices that would allow farmers to make a profit of at least 30 per cent, Phong said.
Vietnam's biggest rice importer, the Philippines, has not signed any contracts with Vietnam this year. However, the country, which has imported 1.5 million to 2 million tons of Vietnamese rice in recent years, was expected to again buy at least 1.5 million tons this year, the association said.
Instead of focusing its exports on the Philippines, Vietnam has signed contracts with Indonesia and Bangladesh, which allowed Vietnam to export 485,000 tons of rice in January, up 36 per cent from the same month last year, the association said.
Phong reassured companies that the price of rice this year would be higher than last year so companies should be confident to stockpile the crop.
In 2010, Vietnam exported 6.75 million tons of rice for 3.23 billion dollars, second only to Thailand.
The Vietnamese government plans to export 6 million tons of rice this year, a little bit lower than last year because stockpiles are lower than last year.
(Source: http://www.earthtimes.org/articles/news/366817,stockpile-million-tons-rice.html)
Govt lifts export ban on non-basmati rice
The government today allowed the export of three varieties of non-basmati rice grown in the southern states in anticipation of bumper crop production this year.
Partially lifting a three-year old ban, the government has permitted exports of 'Ponni Samba' and 'Matta' varieties of basmati, subject to a cap of 25,000 tonnes each, while shipments of 'Sona Masuri' have been permitted with a cap of 1,00,000 tonnes, the Directorate General of Foreign Trade (DGFT) said in a notification.
"Certain varieties of rice (Sona Masuri, Ponni Samba and Matta) are permitted to be exported with a limit on quantity of export for the KMS (Kharif Marketing Season), 2010-11," the DGFT said, adding that the export ban continues on other varieties.
Exemptions from the export ban would also be contingent upon the value of shipments exceeding $850 per tonne.
These varieties are grown in Tamil Nadu, Kerala, Andhra Pradesh and Karnataka.
According to the Agriculture Ministry, rice production will rise to 94 million tonnes in the 2010-11 crop year from 89 million tonnes in the previous year.
The DGFT, an arm of the Commerce Ministry responsible for export and import-related matters, said that overseas shipment of two varieties of onions has also been permitted, subject to a licence.
"The export of Bangalore Rose onions and Krishnapuram onions is now restricted and their export shall be permitted under licence," it said, adding that the ban on exports of other varieties of onions will continue.
The government had banned the export of onions early this January to rein in soaring onion prices, which touched Rs 70-85 per kg on December 21, 2010, in retail markets of major metros.
The decisions were taken on Wednesday by an Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee.
Vietnam to increase rice exports
Vietnam plans to increase its rice exports this year in a move to assist farmers.
Truong Thanh Phong, chairman of the Vietnam Food Association (VFA), told yesterday meeting that besides exporting to Indonesia and Bangladesh, VFA would try to secure orders from Cuba, Iraq, Malaysia and the Philippines.
Mr. Phong stated that Vietnamese rice has an advantage over Thai and Pakistani rice as it is cheaper.
Philippine is expected to import 1.5 million tons of rice this year and Indonesia too will be importing a large volume by mid-year. Vietnam must therefore gear itself to avail of this export market at the appropriate time.
VFA is hence preparing to assign its members of 65 companies to purchase one million tons of rice at the market price, but no less than VND5, 000 per kilogram, for storage from early March to mid April.
These enterprises will be given preferential loans at low interest rates to buy rice stocks.
Le Minh Truong, director of Song Hau Food Company, said that VFA must clearly instruct and monitor companies to buy rice from farmers at reasonable rates otherwise they will buy and export at very low rates causing a stiff competition amongst local exporters.
According to VFA, Vietnam exported over 485,000 tons of rice by January 31, 350,000-400,000 tons more than their set target. The average export rate was US$503.46 per ton (FOB price), showing a US$39.54 hike per ton.
The country plans to export a further 700,000 tons in February and 500,000-600,000 tons in March. In total, the rice exports will touch around 1.8 million tons in the first quarter.
Local rice firms have registered to export 1.515 million tons of rice to Indonesia and Bangladesh, of which 4.484 million tons has already been sent and the remaining 1.031 million tons will be delivered this month.
(Source: http://www.saigon-gpdaily.com.vn/Business/2011/2/89582/)
Thursday, February 10, 2011
Wheat May Witness Selling Pressure
U.S. wheat futures stumbled on a strong dollar and profit taking after Wednesday's gains. The Wednesday rally was due more to corn's strength rather than a fundamental change in the outlook for wheat. While supplies for grains generally are tight, analysts add that wheat appears to have the least upside.
KCBT wheat ended down 20 cents to $9.68 and MGEX wheat settled down 12 1/4 cents to $10.14 3/4.March CBOT wheat closed down 23 1/4 cents, or 2.6%, to $8.62 3/4 per bushel and the contract is currently trading higher at $8.67, up 42 points.
Indian wheat futures for the March contract ended the last session down by 0.08% at Rs 1305.8 per 100 kg and the open interest added 6.54%.
March contract on NCDEX is likely to move lower with support at Rs 1,300 and resistance at Rs 1,310.
(Source: http://www.indiainfoline.com/Markets/News/Wheat-May-Witness-Selling-Pressure/3546926383)
Wheat’s Rally to Fuel Gains in Rice, Zeigler Predicts
Rice, the staple food for half the world, may advance following a rally in wheat prices as consumers seek alternatives, according to Robert Zeigler, director general of the International Rice Research Institute.
“If wheat production falls, people will have to substitute with something in their diet: rice is the easiest one,” Zeigler said in an interview on Bloomberg Television today. There are no signs of panic buying at this stage, Zeigler said.
Wheat climbed to the highest level in more than two years this week on concern drought inChina may curb output, boosting competition for dwindling global supplies. The jump may fuel further gains in global food costs, which reached a record last month. The world’s neediest people are most affected by rising food costs, World Bank President Robert Zoellick said yesterday.
Wheat on the Chicago Board of Trade, the global benchmark, touched $8.9325 a bushel on Feb. 9, the highest level since Aug. 25, 2008. The grain has surged 71 percent over the past year afterRussia banned exports and floods hurt crops in Canada and Australia. Rough-rice futures, trading today at $16.07 per 100 pounds in Chicago, have gained 12 percent in the past year.
China, the top wheat consumer, is having a prolonged drought in its main growing region, according to Minister of Agriculture Han Changfu. The nation will spend 12.9 billion yuan ($1.96 billion) to bolster grain production and fight the drought, Premier Wen Jiabao has said.
The International Rice Research Institute, or IRRI, is a research center in the Philippines that develops crop varieties and farm techniques to help growers to improve yields and quality, according to its website. Zeigler has more than three decades experience in agricultural research.
