Commodities In News Soyabean futures edged higher on NCDEX after speculators raised their bets on strong demand for oil and meal due to positive crushing margin. However, some gains were capped by improving arrivals in the physical market and expectations that the peak arrivals will be observed during the month of December. The contract for December delivery was trading at Rs 3133, up by 0.55% or Rs 17.00 from its previous closing of Rs 3116. The open interest of the contract stood at 112120 lots. The contract for January delivery was trading at Rs 3200, up by 0.57% or Rs 18.00 from its previous close of Rs 3182. The open interest of the contract stood at 78890 lots on NCDEX. Coriander futures traded higher on NCDEX as participants built up fresh positions on the back of pickup in demand in the spot market. Besides, tight stock positions following limited supply from major producing belts also fuelled the uptrend. The contract for December delivery was trading at Rs 7960.00, up by 0.68% or Rs 54.00 from its previous closing of Rs 7906.00. The open interest of the contract stood at 5350 lots. The contract for January delivery was trading at Rs 8032.00, up by 0.31% or Rs 25.00 from its previous closing of Rs 8007.00. The open interest of the contract stood at 3940 lots on NCDEX. Turmeric futures edged higher on NCDEX on receipt of some fresh demand from North India, Further, expectation of heavy rains in the Turmeric growing areas of Tamil Nadu, Andhra Pradesh and Telengana too fuelled the uptrend. The contract for December delivery was trading at Rs 7278, up by 0.33% or Rs 24 from its previous closing of Rs 7254. The open interest of the contract stood at 7180 lots. The contract for April delivery was trading at Rs 6970, up by 0.52% or Rs 36 from its previous closing of Rs 6934. The open interest of the contract stood at 6800 lots on NCDEX.
In a bid to boost export of seeds, the union government has added 42 new seed varieties to the Organisation for Economic Co-operation and Development (OECD) list after receiving recommendations from the industry taking the total number of registered varieties to 190 and 24 crops, said a top official of union ministry of agriculture. OECD is a group of 35 countries which has set up standards for seed development and the same can be traded among the member countries. Rajesh Kumar Singh, joint secretary with the Ministry of Agriculture and Farmers Welfare, said, "We have accepted the recommendation of adding new varieties to the OECD list and have added 42 new varieties subject to fulfilling of criteria. As of now, about 190 varieties and 24 crops have already been registered." "Inclusion of more varieties in this list will allow Indian companies to boost exports as it opens up a huge export market," said Singh.
Given the deficit situation in the domestic and international markets, the sugar prices are expected to remain firm in the near term, says an ICRABSE -0.66 % report. This, coupled with the moderate cane prices seen for the current sugar year across most states, augurs well for profitability in the near-term. Sabyasachi Majumdar, Head, Corporate Ratings, ICRA, said, “With recent Government estimates pegging sugar production at a 10% lower level as compared to last year, sugar prices are likely to remain firm over the three to four quarters. This apart, moderate cane price hikes effected in most states, notably UP, bode well for the industry profitability outlook in the short term.” Domestic sugar prices have remained firm, having increased from around Rs. 31,500/MT in March 2016 to Rs. 36,000/MT in August 2016. After remaining stable at Rs. 36,000/MT in September, 2016, the surge in prices continued in October 2016, with prices reaching their highest level of Rs 36,200/MT in the last five years. The prices continued to remain healthy in November 2016 at Rs 35,500/MT, albeit a marginal dip, following the demonetisation announcement.
Published on Dec 2, 2016
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