Cotton

Soy oil down; oilseeds recover
Mumbai - Indian vegetable oilseeds and oil complex was trading mixed with only soy oil quoting down Wednesday. Soybean and mustard seed are trading positively with short-covering of yesterday’s losses...

02/04 09:27 India to constantly review edible oil duties.

02/04 10:08 Mumbai edible oil prices - Apr 02

02/04 09:05 Market outlook: Edible oils

02/04 07:38 Soya bean NCDEX MAY

Dubai Al-Khaleej to import 10 lakh MT sugar from India
Mumbai - Dubai's Al-Khaleej Sugar Company has contracted to import around 10 lakh metric tons of sugar from India for the current marketing year that started in October, a senior executive said.

02/04 10:20 Gur futures trade down marginally

02/04 09:48 Sugar futures recover slightly

02/04 09:25 ISO sees record high world sugar output ...

02/04 09:10 India 2007-08 sugar exports likely at 31...

BEIJING, Apr 2, 2008 (Asia In Focus via COMTEX) -- The China Cotton Textile Association (CCTA) recently published an investigation and analysis report, showing that under the pressure of rising internal costs and the external environment, domestic textile enterprises have indicated a desire for transformation, with some 49.2 per cent of enterprises surveyed hoping to transfer to other sectors. The textile enterprises surveyed this time were mainly council units of CCTA, scattered in 17 provinces, municipalities and autonomous regions.

* According to the report, affected by such factors as the appreciation of RMB yuan, the export rebate policy adjustment and trade frictions, textiles enterprises may cut their investment in the textile sector by 15.5 per cent.

* A sample survey shows that the proportion of non-main operating income of the top 50 textile enterprises increased by a large margin in 2007 compared with 2006, and their non-main operating income mainly came from their investment in real estate, stocks, funds and other industries.

Sakuma Exports plans to export 100,000T sugar
2 Apr, 2008, 1436 hrs IST


MUMBA: Sakuma Exports Ltd plans to export about 100,000 tonnes of sugar in the first two months of 2008-09, a senior company official said on Wednesday.

"Exports (in April-May) could be better if we are able to move sugar to the ports on time," said Ramesh Mistry, vice president, agro division of Sakuma Exports Ltd. In the year ending March 2008, the company exported 400,000 tonnes of sugar, he said.

Edible oils dip on continued selling
Mumbai - Indian vegetable oilseeds and oil complex closed sharply lower with heavy losses registered from late-noon. Soy oil, which ended down by close to 4% saw heavy losses from opening itself to ma...

02/04 09:27 India to constantly review edible oil du...

02/04 10:08 Mumbai edible oil prices - Apr 02

02/04 10:51 Product: FOB Malaysian ports- Apr 02

02/04 11:26 CIF Rates: Soy dgm up

Apr 01, 2008 (Asia Pulse Data Source via COMTEX) -- After riding the "India growth story", tackling inflation has become the top priority of the UPA Government in its last year in office. But ironically, more the government tries to tame the price rise, more disturbing numbers it is getting week after week. Measured on the basis of wholesale prices, the year-on-year inflation touched an 11-month high of 5.92 per cent for the week closing March 8,2008. The day the inflation numbers were released, the government announced slashing import duties on palm oil from 45 per cent to 20 per cent and allowed rice import at zero duty.

Wheat imports are already allowed without duty, though it is not much help because the wheat prices have sky-rocketed in the world market thanks to increased demand and drought in Australia, the major grain exporting country. The duties on refined palm oil, including RBD palmolein, was cut from 52.5 per cent to 27.5 per cent. The duties were also cut in several other cooking oils including mustard, sunflower, rapeseed and canola. Customs duty on crude mustard, rapeseed, colza and canola oils stands at 20 per cent while refined varieties of these oils attract duty at 27.5 per cent. Earlier, these levies were 75 per cent. The government has been taking a lot of credit for taking the country on a growth path for the fourth year in a row. In fact, it has got a lot of macro economic data to show on its report card -be it GDP growth of between eight and nine per cent, foreign exchange reserves of over 300 billion dollars and the stock market surge all the way to about 21,000 on the Sensex from just about 4000 when the UPA assumed office in May 2004. But the irony of it all is that the common-man, whom the Congress Party treats like its mascot, does not much understand the growth story.

To put the record straight when we talk of the common man, we do not mean the middle class people living in cities. Poor both in the rural and urban areas do not understand and care about what level the Sensex is trading. They are also not impacted by the GDP growth. For a poor man, the price rise is painful and the government is not able to manage the supply side beyond a point. Experts feel that the duty cuts would help ease the price situation only if the rates in the international market are lower than those prevailing in the country. Take wheat for instance. According to Agriculture Minister Sharad Pawar, the prices of wheat in India are the lowest. Still, the atta prices at the retail store are hurting the poor.

Prices of the fruits and vegetables have also been increasing and easy imports have not really improved the situation. Besides the duty cuts, the government has taken other measures to keep a check on prices. It had announced across-the-board drop of two per cent in excise duty in the Budget. Barrinig a few sectors like the passenger cars, not many producers have announced cuts in retail prices.

Be it speculative or genuine, the demand of goods and commodities has far outpaced the supplies and the government measures have not gone too far to remedy the situation. The government has a limit to slash duties and taxes. It also has to worry about its balance-sheet, especially when fears have surfaced about the US slowdown impacting the Indian economy as well. While Finance Minister P Chidamabaram had stated recently that the government would do all it can to check inflation, he admitted in Parliament that the country is feeling the rub-off from hardening of global commodity prices. Judging from the speculative prices in crude and gold, the commodity prices may correct if not crash in the near future.

If that happens, the situation may come under control. Until then, the price rise would keep the government on tenterhooks, especially in an election year. The anti-inflationary measures are not restricted to removing duties on imports but also curbing exports. Restrictions have been imposed on rice exports with introduction of Minimum Export Price (MEP) for both basmati and non-basmati rice. The MEP for basmati rice has been fixed at 900 dollars per tonne and 650 per tonne for non-basmati variety. Besides, curbs have been imposed in regard to the shipments of rice. Only four ports of Kandla, Kakinada, Kolkata and JNPT, Mumbai have been designated for rice exports, creating in a way road-blocks for the exports, in the name of checking domestic price. Whether frequent changes in export policies are adviseable or not is a big question. Government itself admits that banning exports, now and then, does not help the country and its image as a credible long-term supplier gets a dent with regular policy interventions.

"Constant pressure from public and Parliament," compels the government to impose frequent bans although these measures were not adviseable, Agriculture Minister Sharad Pawar said recently. He said the long-term solution to check price does not lie in imports. The country needs to invest heavily in increasing yield in agriculture. While the economy has been growing at eight and nine per cent and the per capita income has also been increasing by about seven per cent, the agricultural production has not matched the domestic demand.

Part of the fault also lies with the kind of agricultural research which has concentrated on harvests from the irrigated land whereas 60 per cent of India's farm land comprise the arid areas. The supply side improvement would mean that the growth in the agricultural sector which is less than four per cent has to move up in line with the other sectors such as industry and services. Otherwise, the pressure on prices would continue and the country would become vulnerable in the area of food security. The Budget has allocated more money for agriculture including irrigation projects. But those projects would have long gestation period.

CBOT Soybean Oil (ECBOT)

Month
Click for chart Session Pr.Day Options
Open High Low Last Time Sett Chg Vol Sett OpInt
May 08 52.50 53.13 52.10 52.53 Apr 02, 09:34 - 0.38 68454 52.15 111493 n/a
Jul 08 53.38 53.83 52.82 53.23 Apr 02, 09:34 - 0.08 41991 53.15 77663 n/a
Aug 08 54.13 54.13 53.35 53.35 Apr 02, 03:59 - -0.20 1946 53.55 11600 n/a
Sep 08 53.75 54.27 53.53 53.80 Apr 02, 09:33 - 0.03 2052 53.77 9771 n/a
Oct 08 53.60 54.12 53.60 53.86 Apr 02, 09:34 - 0.01 892 53.85 8223 n/a
Dec 08 54.10 54.79 53.90 54.25 Apr 02, 09:34 - 0.13 22780 54.12 58985 n/a
Jan 09 54.57 54.64 54.42 54.42 Apr 02, 09:33 - 0.12 329 54.30 2623 n/a
Mar 09 54.71 55.00 54.71 55.21 Apr 02, 09:31 - 0.66 1157 54.55 5052 n/a
May 09 - - - 54.50 * Apr 01, 16:23 - - 152 54.50 2480 n/a
Jul 09 - - - 54.50 * Apr 01, 16:23 - - 168 54.50 1395 n/a
Aug 09 54.50 54.50 54.50 54.50 Apr 01, 22:23 - 0.19 35 54.31 110 n/a
Sep 09 - - - 53.00 * Apr 01, 16:23 - - 5 53.00 103 n/a
Oct 09 - - - 52.00 * Apr 01, 16:23 - - 7 52.00 112 n/a
Dec 09 - - - 51.75 * Apr 01, 16:23 - - 406 51.75 1597 n/a
Jul 10 - - - 51.75 * Apr 01, 16:23 - - 0 51.75 0 n/a
Oct 10 - - - 51.75 * Apr 01, 16:23 - - 0 51.75 0 n/a
Dec 10 - - - 51.75 * Apr 01, 16:23 - - 9 51.75 5 n/a

Memphis, TN Cotton Program, MNB - 01-Apr-08

Spot quotations and differences are for cotton equal to the official standards, net weight, in mixed lots. Upland quotations are
FOB car/truck, which includes compression and any brokerage charges. The upland base quality is color 41, leaf grade 4,
staple 34 (1.05 to 1.07), mike 3.5, 3.6 and 4.3 to 4.9, strength 26.5 to 28.4 grams per tex and uniformity 80.5 to 81.4.
American Pima quotations are UD free, FOB warehouse, and brokerage fees included.

UPLAND SPOT PRICE QUOTATIONS SPOT TRANSACTIONS

Color 41 Color 31 Usuable sales provided
Growth Basis Leaf 4 Leaf 3 to Cotton Programs
Area N.Y. Futures Staple 34 Staple 35 Today Season
Points Month cents/lb. cents/lb. bales bales

Southeast -525 May-08 65.20 66.45 161 129,844
North Delta -700 May-08 63.45 64.95 0 136,138
South Delta -700 May-08 63.45 64.95 0 27,660
East TX-OK -820 May-08 62.25 64.25 421 145,846
West Texas -895 May-08 61.50 64.50 974 961,511
Desert SW -975 May-08 60.70 66.20 0 29,428
SJ Valley -825 May-08 62.20 70.95 0 9,481
Upland total
Average -777 May-08 62.68 66.04 1,556 1,439,908
Previous -742 May-08 61.92 65.28


AMERICAN PIMA SPOT PRICE QUOTATIONS

Grade 2 Grade 3 Grade 3 SPOT TRANSACTIONS
Staple 46 Staple 44 Staple 46
AP total
American Pima 102.00 84.00 89.00 0 11,703




NEW YORK FUTURES - CONTRACT NO. 2 2/ 7-MARKET AVERAGE
COLOR 41 LEAF 4, STAPLE 34, MIKE 35-49, BASE QUOTATIONS
STRENGTH 25 OR GREATER. FOR UPLAND COTTON

Month Cents per pound Season high
Today Previous Change 3/5/2008 79.16
May-08 70.45 69.34 1.11 Season low
Jul-08 73.95 72.80 1.15 8/16/2007 50.34
Oct-08 78.06 76.80 1.26
Dec-08 80.99 79.12 1.87 EFFECTIVE Mar 28 - Apr 03
Mar-09 83.58 81.60 1.98 AWP 60.47
May-09 84.59 82.36 2.23 CC ADJ. 0.00
Jul-09 85.49 83.21 2.28 LDP 0.00
Oct-09 85.99 83.61 2.38 EFFECTIVE Mar 28 - Apr 03
Dec-09 86.59 84.11 2.48 PCP 7.56
Mar-10 88.19 85.81 2.38

Corn Rises to Record on Rainy Weather
Wednesday April 2, 1:33 pm

Corn Futures Jump to Record After Rain Threatens to Slow Planting

NEW YORK (AP) -- Corn prices climbed to a record just below $6 a bushel Wednesday as cold, wet weather in the U.S. corn belt threatened to slow planting, adding to concerns over tight supplies.
Other commodities traded broadly higher, with precious metals, wheat, soybeans and gasoline futures all gaining.

Heavy rains and some snowfall in corn-growing states in the Midwest and the South are expected to continue into the weekend, raising the possibility that growers will have to postpone spring planting. That would only increase an already acute supply crunch for corn, which has shot up in value amid soaring demand to make ethanol and feed livestock.

"We're going to start trading the weather here," said Jason Ward, analyst with Northstar Commodity in Minneapolis. "The rainy weekend means that some corn growers may switch acres over to beans, and it also raises the risk that there will be lower corn yields."

Corn for May delivery jumped 12.75 cents to $5.9675 a bushel on the Chicago Board of Trade, after earlier rising to a record $5.99 a bushel.

Corn has surged 25 percent this year and appears poised to keep rising after the U.S. government on Monday predicted a sharp drop in corn planting. In its annual planting report, the U.S. Department of Agriculture projected that farmers will plant 86 million acres of corn, an 8 percent drop from last year.

"The bullish planting report is bringing some new investment capital into the market," Ward said. "Corn looks to be the fundamentally safest place to put your money."

Other agriculture commodities also rose Wednesday. Wheat for May delivery jumped 31 cents to $9.26 a bushel on the CBOT, while May soybeans rose 22 cents to $12.33 a bushel.

In precious metals markets, gold prices rebounded Wednesday after a steep fall below $900 the day before attracted bargain buyers. The dollar also weakened against the euro, boosting the appeal of precious metals as a hedge against inflation.

Gold for June delivery rose $9.40 to fetch $897.20 an ounce on the New York Mercantile Exchange. On Tuesday, the metal fell closed at $887.80, its lowest level in more than two months, after a Wall Street rally and a stronger dollar diminished the appeal of hard assets.

Other precious metals also traded higher. Silver for May delivery jumped 21.5 cents to $17.105 an ounce on the Nymex, while Nymex copper rose 7.15 cents to $3.8780 a pound.

In energy markets, gasoline futures jumped Wednesday after the U.S. government reported that gasoline demand rose unexpectedly last week while gasoline supplies fell.

May gasoline futures rose 7.47 cents to $2.7139 a gallon on the Nymex after the release of the government report.

Other energy futures also rose. Crude oil for May delivery gained $1.15 to $102.13 a barrel on the Nymex, while May heating oil futures added 1.92 cents to $2.8989.

Prices of edible oils, seeds continue to fall in futures mkt....... New Delhi, Apr 02, 2008 -- Prices of oilseeds and edible oils continued to fall in futures as well as spot markets today, following government's decision to cut customs duty on all edible oils.

Prices of soyabean oil slipped by Rs 2 per kg, while mustard seed and soyabean also fell sharply.

At 1700 hours, April contract of soyabean oil fell to Rs 543.90 per 10 kg today from 564.30 per 10 kg yesterday. Soyabean prices dipped to Rs 2,041 per quintal from Rs 2,087 per quintal, while the active contract of mustard seeds for May slided to Rs 524 per 20 kg from Rs 531.90 per 20 kg.

Prices of these three commodities showed downward trend in spot market also. Prices of soyabean oil fell to Rs 544.20 per 10 kg from Rs 568 per 10 kg. Soyabean prices came down to Rs 2,048 a quintal from Rs 2.060 per quintal, while mustard seed declined to Rs 523 per 20 kg from Rs 529 per 20 kg.

The Cabinet Committee on Prices (CCP) on Monday had decided to slash customs duty on all edible oils in crude form and brought down the duty to 7.5 per cent for refined form The decision had an immediate impact on the price movement of edible oils as well as oilseeds in futures market. At NCDEX counter, prices fell significantly yesterday halting the trades.