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Epic Research Daily Agri Commodity Report Of 19 JANUARY 2017



Commodity News

The effect of downward trend in Sugar price has declined the price of Gur ( Jaggery) in some parts of the country, Maharashtra Gur manufacturers have been hit hard due to high cane prices and have approached the state government seeking intervention. Request have been submitted to revenue minister to consider some kind of support as farmers cannot afford manufacturing Gur at the prevailing market rates. Kolhapur Gur manufacturers have to buy sugarcane at Rs 3,000 per tonne as sugar mills in the district pay this rate under pressure of the farmers' organisation. A rate of less than Rs 40 per kg thus becomes unaffordable.

Soybean meal exports from India is expected to fall by at least a fifth in 2017/18 from a year ago as a rally in local Soybean prices and a firmer rupee make shipments from the south Asian country pricey for overseas buyers, industry officials said. Lower exports from India will help major growers like the United States, Argentina and Brazil increase sales of the animal feed to Asian buyers like Bangladesh, Vietnam and Japan. Soybean meal prices in India have risen over 15 percent in the past two months to $405 per tonne on a free-on-board (FOB) basis following a rally in Soybean prices. Global Soybean meal prices edged up about 1 percent over the same period to $324 a tonne.

India’s basmati Rice exports to the European Union (EU) are set to take a serious hit this year as the 28-member bloc has lowered the tolerance level for tricyclazole - a fungicide used by most basmati growers in the country - to very low levels.he government, in collaboration with exporters, is now trying to help farmers switch over to another fungicide, isoprothiolane, which is an alternative to tricyclazole and is accepted in the EU. However, the fact that isoprothiolane is not accepted in the US has made the switch difficult, the government said.

Economic News

Sugar prices in Maharashtra have fallen to Rs 29.40 per kg at mill gate, hitting a level last seen in March 2016, at a time when millers are also complaining of sluggish offtake. A section of millers have expressed their inability to pay farmers as per the 70:30 revenue sharing formula and challenged the decision in the court. "Sugar prices are falling everywhere as mills are under pressure to clear the cane payment bills," said T Sarita Reddy, president of Indian Sugar Mills Association. Millers are resorting to panic selling as they are under stress to make cane payments, Reddy said. Lending banks have reduced valuation of sugar, thereby making lesser amount of advance available for cane payment. Thus the mills that have pledged their sugar with the banks are faced with short margins now, he said. Maharashtra's millers had stopped sale for about 10 days in the hope of getting higher prices. However, they started selling again and the prices have been sliding faster, declining about Re 1 per kg in the past one week.

The government will link 109 more mandis on the electronic National Agriculture Market (eNam) by next month to ensure farmers get better rates for their produce, a senior agriculture ministry official said. So far, 470 mandis in 14 states have been integrated with the eNAM platform, launched in April 2016 with an aim to help farmers with better price discovery and provide facilities for smooth marketing of their produce. The government has set a target of linking total 585 mandis on the eNAM platform in the current fiscal. "Work is in progress in additional 109 mandis. We expect these mandis to go live on the e-NAM platform by first week of February," the ministry official told PTI. Punjab, Kerala, West Bengal, Chandigarh and Puducherry are the upcoming states/union territories (UTs) which have shown interest to connect some of their mandis on the eNAM platform. That apart, Telangana, Gujarat and Maharashtra wants to connect additional mandis on the eNAM, the official added.

Trading Recommendations

SELL CORIANDER APR BELOW 5680 TARGET 5650 5610 5560 SL ABOVE 5730
BUY TURMERIC APR BELOW 7570 TARGET 7600 7640 7690 SL ABOVE 7520
BUY GUARGUM5 FEB ABOVE 9290 TARGET 9320 9360 97410 SL 9240

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News Release: Epic Research Daily Agri Commodity Report Of 19 JANUARY 2017
Submitted on: January 19, 2018 04:34:46 AM
Submitted by: EpicResearch
On behalf of: www.epicresearch.co/
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