- NCDEX Nov wheat prices advanced by 1.99 per cent to Rs 1,845 per quintal in futures trading today as participants engaged in enlarging their positions, tracking a firm trend at spot market on rising demand from flour mills.
- Concerns over reduced output for the second consecutive year and rapidly depleting stocks have set a firm tone for wheat prices in India over the last five months
- The Centre has estimated domestic wheat output at 93.5 million tonnes (mt) for FY2015-16 against the demand of 88 mt. However, the market estimates are far lower at 84-85 mt due to fall in acreage to 29 million hectares from 31 million hectares a year ago. Moreover, unfavorable weather and successive droughts will keep yield and output depressed.
- Lower output for 2015-16 prompted the Food Corporation of India (FCI) to procure 22.93 mt as on June 30 against an initial target of 29 mt and 18 per cent lower than 2014-15. In FY 2016-17, the FCI has sold 2.35 mt of wheat under open market sale scheme (OMSS) till September end, while holding 24.24 mt, down 32 per cent from a year ago. As per buffer norms, the central pool should have a minimum stock of 20.5 mt by October 1.
- With PDS monthly requirement of 2-2.5 mt before the arrival of new season wheat, there is expectation of likely shortage in the central reserve. Thus, the government is considering restricting the sales under OMSS in view of the falling procurement and inadequate stock levels.
- However,The USDA estimates the US to produce 63.15 mt in 2016-17 against 55.84 mt a year ago — primarily due to favorable weather and thus high yield as, despite 6 per cent lower acreage, wheat output is expected to go up 13 per cent
- Consultancy Strategie Grains lowered again its estimate of European Union soft wheat production and exports this season due to adverse crop weather, but raised its outlook for the ongoing EU maize harvest.
- And It put EU soft wheat production in 2016/17 at 135.8 million tonnes, down 600,000 tonnes from its previous monthly estimate and 10 percent below a record 2015 crop.
|
No comments:
Post a Comment