Mumbai: Chana futures prices on the national commodity bourses may remain weak over the next few days on higher stocks with exchange warehouses supported by continued imported inflows of pulses. Overall demand from local buyers is limited.
Chana futures on NCDEX fell by nearly 12% to trade at Rs 2,119 per quintal on Monday over last month mainly on increased supplies amid restricted buying from basan mills.
Chana prices also fell by Rs 20 to 2,125 per quintal on Monday at Delhi market with daily inflows of about 3,500-4,000 bags.
“Rising stocks in exchange warehouses and higher output estimates by the government pushed the chana futures prices lower,” analyst with Bonanza Commodity Broker said. Demand from millers remained steady, he said.
Warehouse stocks in the NCDEX has risen around 56% in the month of May and stood at 84,154 tonne, as per latest exchange data.
Sowing of kharif pulses including tur, urad and moong may commence in the coming weeks and given the higher prices of these pulses, a higher acreage this season could not be denied.
Spot prices of urad, tur and masoor are ruling higher than chana prices in the northern markets. It can be noted that only yellow peas’ prices are ruling lower than chana due to government intervention. “A stronger rupee that made imports cheaper was nullifying impact of lower arrivals. State run agencies have contracted to import of 64,000 tonne of pulses for 2009-10,” Anand James, senior analyst with Geojit Comtrade, said.
Government agencies had contracted 1.03 million tonne of pulses in the previous year and 9.28 lakh tonne have landed in the country, according to government agencies. “We expect chana prices to remain weak in the coming weeks as stockists may not like to hold for long time when the availability in the open market is good enough. I think prices may slip to below Rs 2,000 levels,” a local trader said.
Chana output may rise to 13.7% to 6.54 million tonne in 2008-09 against the 5.75 million tonne a year ago, according to government estimates. (Source: Financial Express)
Wednesday, June 3, 2009
Wheat futures to remain weak
Mumbai: Wheat futures prices may remain weak over the next few days mainly on restricted buying interest amid huge stocks with Food Corporation of India (FCI) and state government agencies
Wheat June 2009 futures on the National Commodity & Derivatives Exchange (NCDEX) fell by nearly Rs 35 over eight trading session to trade at Rs 1,105 a quintal on limited buying support.
On Wednesday, prices quoted below Rs 1,100 mark a quintal. Significant volumes were witnessed with an increase in the open interest at 17,350 tonne compared with 6,610 tonne two days back.
“Futures prices are still higher than the spot markets. I think prices may remain under pressure amid slow trades. Buyers have reserved their buying thanks to huge stock base with government agencies. Other hand, spot prices are also weakening slowly on lack of fresh buying. Big MNCs are currently away from the market,” a local trader said.
Spot prices in the northern India also declined gradually and are quoting below minimum support price (MSP) level in some part of Uttar Pradesh and Rajasthan mainly due to restricted buying. Spot price in Delhi market was quoted at Rs 1,088 a quintal as against MSP level of Rs 1,080.
Among the major trading in north India, spot prices were quoted lower at Rs 1,045 at Kanpur mandi, Rs 1,020 at Bareilly mandi and Rs 1,074 a quintal in Kota market.
“Fundamentally, there is a supply glut in both the Indian and global wheat markets. Thus, from the longer term perspective, wheat prices are expected to remain bearish,” analyst with Angel Commodities said.
The government is not in hurry to lift wheat exports curbs which will keep price under check. The quantitative restriction of 20 lakh tonne on wheat export may soon be waived by allowing free trade as there is a record procurement of the food grain this year, trade sources said.
In the short to medium term, prices are likely to fall further due to bumper crop in the current season and government agencies have procured huge stocks in the domestic market due to a record production, analyst said.
It can be noted that huge wheat stocks (13-14 million tonnes as on 1 April) with the government against the normal 4 million tonnes and higher procurement target 24.4 million tonnes ensures that wheat prices in the domestic market are unlikely to shoot up in the longer term. (Source: Financial Express)
Wheat June 2009 futures on the National Commodity & Derivatives Exchange (NCDEX) fell by nearly Rs 35 over eight trading session to trade at Rs 1,105 a quintal on limited buying support.
On Wednesday, prices quoted below Rs 1,100 mark a quintal. Significant volumes were witnessed with an increase in the open interest at 17,350 tonne compared with 6,610 tonne two days back.
“Futures prices are still higher than the spot markets. I think prices may remain under pressure amid slow trades. Buyers have reserved their buying thanks to huge stock base with government agencies. Other hand, spot prices are also weakening slowly on lack of fresh buying. Big MNCs are currently away from the market,” a local trader said.
Spot prices in the northern India also declined gradually and are quoting below minimum support price (MSP) level in some part of Uttar Pradesh and Rajasthan mainly due to restricted buying. Spot price in Delhi market was quoted at Rs 1,088 a quintal as against MSP level of Rs 1,080.
Among the major trading in north India, spot prices were quoted lower at Rs 1,045 at Kanpur mandi, Rs 1,020 at Bareilly mandi and Rs 1,074 a quintal in Kota market.
“Fundamentally, there is a supply glut in both the Indian and global wheat markets. Thus, from the longer term perspective, wheat prices are expected to remain bearish,” analyst with Angel Commodities said.
The government is not in hurry to lift wheat exports curbs which will keep price under check. The quantitative restriction of 20 lakh tonne on wheat export may soon be waived by allowing free trade as there is a record procurement of the food grain this year, trade sources said.
In the short to medium term, prices are likely to fall further due to bumper crop in the current season and government agencies have procured huge stocks in the domestic market due to a record production, analyst said.
It can be noted that huge wheat stocks (13-14 million tonnes as on 1 April) with the government against the normal 4 million tonnes and higher procurement target 24.4 million tonnes ensures that wheat prices in the domestic market are unlikely to shoot up in the longer term. (Source: Financial Express)
Turmeric price to remain bearish
Mumbai: Futures and spot prices of turmeric on the national bourses may continue to remain weak over next few days in anticipation that the production of turmeric in the coming season would be better due to early onset of monsoon.
Last week, turmeric June contracts on the National Commodity & Derivatives Exchange (NCDEX) fell sharply by nearly Rs 590 per quintal or 11% to trade at Rs 4,927 per quintal on Monday over the last week on some profit-taking on reports of weak overseas demand and rise acreage in coming season in Andhra Pradesh.
“Turmeric prices went down by near 4% over past few days extending the losses on weak demand and rise acreage in coming season led the traders to book profits and come out of their long positions,” Anand James, senior analyst, Geojit Comtrade said.
Early onset of the monsoon may induce farmers to go for sowing of turmeric. Sowing of turmeric is expected to increase as they earned better prices in the current year, he added.
Spot prices at the Nizambad mandi also declined by Rs 250 per quintal on scattered buying interest from local buyers. However, spot markets at Nizamabad and Erode remained closed on Saturday due to weekly off. Price gap between spot and futures markets has widened to over Rs 300 per quintal, trade sources said.
“In the long term, prices may take cues from the availability of turmeric in 2009 and demand from the domestic as well as overseas market,” Nalini Rao, analyst with Angel Commodities said.
Physical stocks with the farmers and stockists are at lower levels which include Nizamabad-4 lakh bags, Erode-8 lakh bags, Sangli and Duggiralla-1.5lakh bags each and Warrangal-1 lakh bag.
“Sowing of turmeric is expected to grow in Nizamabad and Erode by around 20% and 40% respectively. Sowing commences with the onset of monsoon in the month of June. Demand from the domestic and overseas market is present in small quantity due to appreciation in rupee and subsequent decline in overseas orders,” she said. (Source: Financial Express)
Last week, turmeric June contracts on the National Commodity & Derivatives Exchange (NCDEX) fell sharply by nearly Rs 590 per quintal or 11% to trade at Rs 4,927 per quintal on Monday over the last week on some profit-taking on reports of weak overseas demand and rise acreage in coming season in Andhra Pradesh.
“Turmeric prices went down by near 4% over past few days extending the losses on weak demand and rise acreage in coming season led the traders to book profits and come out of their long positions,” Anand James, senior analyst, Geojit Comtrade said.
Early onset of the monsoon may induce farmers to go for sowing of turmeric. Sowing of turmeric is expected to increase as they earned better prices in the current year, he added.
Spot prices at the Nizambad mandi also declined by Rs 250 per quintal on scattered buying interest from local buyers. However, spot markets at Nizamabad and Erode remained closed on Saturday due to weekly off. Price gap between spot and futures markets has widened to over Rs 300 per quintal, trade sources said.
“In the long term, prices may take cues from the availability of turmeric in 2009 and demand from the domestic as well as overseas market,” Nalini Rao, analyst with Angel Commodities said.
Physical stocks with the farmers and stockists are at lower levels which include Nizamabad-4 lakh bags, Erode-8 lakh bags, Sangli and Duggiralla-1.5lakh bags each and Warrangal-1 lakh bag.
“Sowing of turmeric is expected to grow in Nizamabad and Erode by around 20% and 40% respectively. Sowing commences with the onset of monsoon in the month of June. Demand from the domestic and overseas market is present in small quantity due to appreciation in rupee and subsequent decline in overseas orders,” she said. (Source: Financial Express)
Appreciating rupee likely to keep guarseed futures weak
Mumbai: Guarseed futures prices may remain weak over the next few days on reports of appreciating rupee and forecast of early arrival of monsoon.
Thanks to strong rupee value against dollar, demand from overseas market was low and will depend on the currency movement. Also, forecast of early arrival of monsoon will play important role for guarseed output.
“The rupee value had appreciated about 4.25% in past four days. This strong movement was unexpected and unusual, after the ruling coalition won a comfortable victory in the elections. Hence, demand for export is limited as strong rupee may hit exporters’ margin. Futures prices are also ruling lower than spot prices,” a leading trader at Jodhpur said.
Guargum exports were initially estimated to touch 2.25 lakh tonne this fiscal, but now the industry expects it to be 1.75 lakh tonne only.
The NCDEX June 2009 contracts (ex-Jodhpur) fell nearly Rs 50 to trade at Rs 1,757 per quintal on Thursday over past one week while spot price at Jodhpur market was quoted at Rs 1,772.75 per quintal.
“Indian Metrological department (IMD) would give its second long range weather forecast by mid-June. This would decide the further trend in guar complex. If the initial forecast of normal monsoon hold well, guar output may be expected good next year,” analyst with Angel Commodities said.
“Besides output forecast, other factors like demand from the overseas market, rupee movement and trend in crude oil prices would also have an influence on the prices in the long term,” he added. (Source: Finanicial Express)
Thanks to strong rupee value against dollar, demand from overseas market was low and will depend on the currency movement. Also, forecast of early arrival of monsoon will play important role for guarseed output.
“The rupee value had appreciated about 4.25% in past four days. This strong movement was unexpected and unusual, after the ruling coalition won a comfortable victory in the elections. Hence, demand for export is limited as strong rupee may hit exporters’ margin. Futures prices are also ruling lower than spot prices,” a leading trader at Jodhpur said.
Guargum exports were initially estimated to touch 2.25 lakh tonne this fiscal, but now the industry expects it to be 1.75 lakh tonne only.
The NCDEX June 2009 contracts (ex-Jodhpur) fell nearly Rs 50 to trade at Rs 1,757 per quintal on Thursday over past one week while spot price at Jodhpur market was quoted at Rs 1,772.75 per quintal.
“Indian Metrological department (IMD) would give its second long range weather forecast by mid-June. This would decide the further trend in guar complex. If the initial forecast of normal monsoon hold well, guar output may be expected good next year,” analyst with Angel Commodities said.
“Besides output forecast, other factors like demand from the overseas market, rupee movement and trend in crude oil prices would also have an influence on the prices in the long term,” he added. (Source: Finanicial Express)
Diamond supplies rise, gold exports continue to fall
Mumbai: At the time when global supplies of rough diamond is improving, the demand for gold jewellery globally has not yet picked up any momentum in the first four months of current calendar year due to the economic downturn that dramatically impacted demand for gold jewellery and rough diamonds.
Gold and rough diamonds are the major raw materials for the gem and jewellery sector. The Diamond Trading Company’s (DTC), marketing arm of DeBeers group and a major global supplier of rough diamonds, last week increased its supply of rough diamond in May 2009 sight by 25% higher which is more than the March/April 2009 sight estimate, but it is still 62% lower than one year ago. May 2009 sight held an estimated value of $250 million.
“It is definitely good news for our domestic market as we import rough diamond in large quantity from global market but there is no fresh buying from major buyers like USA and Hong Kong,” a leading sight-holder who did not wish to be quoted said.
“Demand for diamond jewellery has not yet picked up any momentum and the diamond industry is still stagnant under the pressure of the global economic slowdown,” he added.
Net US rough diamond imports in March totalled $8.31 million, averaging $1,242 per carat. The US imported a net of 6,689 carats of gem quality rough diamonds during the month, according to latest figures available. Compared to March 2008, net imports fell 58.9% in value and 32.4% in volume. Gross imports of 32,944 carats carried a declared value of $19.25 million, averaging $584.50 per carat. On year-on-year basis, gross imports declined 73.9% in volume and 69.2% in value.
“I believe there is good demand for roughs but it is scattered. The overall availability of roughs is less because DTC has cut production. There is stronger demand for 3 carats that yield polished stone of 1-1.5 carats,” said another sight-holder. In April, India’s rough imports decreased 41.91% to $557.98 million, while exports decreased 23% to $765.74 million.
“Demand has not grown much during the last month and it will continue to remain stagnant or low as far as gems and jewellery sector is concerned,”Rajesh Mehta, MD of Rajesh Exports told FE. He said downturn in this sector may continue for over the next three quarters. Gold import has also gone down substantially and it may remain stagnant.”
Among the major global players, Israel’s polished diamond exports fell 28% to $269.1 million in April 2009 while roughs export dropped 59% to $108.3 million in April 2009. Belgium’s rough imports also decreased 58% to $399 million, while exports decreased 37% to $609.8 million. Net rough imports (rough import less export) widened their deficit for the month to $210.8 million, from negative $21.2 million a year earlier. (Source: Financial Express)
Gold and rough diamonds are the major raw materials for the gem and jewellery sector. The Diamond Trading Company’s (DTC), marketing arm of DeBeers group and a major global supplier of rough diamonds, last week increased its supply of rough diamond in May 2009 sight by 25% higher which is more than the March/April 2009 sight estimate, but it is still 62% lower than one year ago. May 2009 sight held an estimated value of $250 million.
“It is definitely good news for our domestic market as we import rough diamond in large quantity from global market but there is no fresh buying from major buyers like USA and Hong Kong,” a leading sight-holder who did not wish to be quoted said.
“Demand for diamond jewellery has not yet picked up any momentum and the diamond industry is still stagnant under the pressure of the global economic slowdown,” he added.
Net US rough diamond imports in March totalled $8.31 million, averaging $1,242 per carat. The US imported a net of 6,689 carats of gem quality rough diamonds during the month, according to latest figures available. Compared to March 2008, net imports fell 58.9% in value and 32.4% in volume. Gross imports of 32,944 carats carried a declared value of $19.25 million, averaging $584.50 per carat. On year-on-year basis, gross imports declined 73.9% in volume and 69.2% in value.
“I believe there is good demand for roughs but it is scattered. The overall availability of roughs is less because DTC has cut production. There is stronger demand for 3 carats that yield polished stone of 1-1.5 carats,” said another sight-holder. In April, India’s rough imports decreased 41.91% to $557.98 million, while exports decreased 23% to $765.74 million.
“Demand has not grown much during the last month and it will continue to remain stagnant or low as far as gems and jewellery sector is concerned,”Rajesh Mehta, MD of Rajesh Exports told FE. He said downturn in this sector may continue for over the next three quarters. Gold import has also gone down substantially and it may remain stagnant.”
Among the major global players, Israel’s polished diamond exports fell 28% to $269.1 million in April 2009 while roughs export dropped 59% to $108.3 million in April 2009. Belgium’s rough imports also decreased 58% to $399 million, while exports decreased 37% to $609.8 million. Net rough imports (rough import less export) widened their deficit for the month to $210.8 million, from negative $21.2 million a year earlier. (Source: Financial Express)
FMC lifts 2-year ban on futures trade in wheat
Mumbai, New Delhi: In a significant development on the eve of the general election results, commodities regulator Forward Markets Commission (FMC) has overturned a major decision of the outgoing UPA government and allowed exchanges to resume futures trade in wheat, one of the country’s main foodgrains. “The National Commodity Exchange can now apply afresh for new contracts. Once they do so, we will grant permission within two or three days,” FMC chairman BC Khatua told FE.
The FMC is believed to have taken the decision to lift the futures trade ban last month, but its announcement was delayed due to imposition of the model code of conduct. It also comes ahead of the government’s move, probably next week, to ease a more than two-year ban on wheat exports.
The outgoing UPA government banned futures trade in wheat, rice, tur and urad in March 2007 under pressure from its then communist allies, who blamed the futures market for a spike in retail prices of food commodities.
However, a high-level committee constituted under the chairmanship of Planning Commission member Abhijit Sen in 2008 to study the impact of futures trading on spot prices failed to identify any direct correlation between the two. Instead, the panel recommended enlarging the futures trade as volumes for most agricultural commodities was relatively low compared to international norms.
Notwithstanding the conclusions made in the Sen report, the government in May 2008 went ahead and suspended futures trade in potato, rubber, refined soy oil and chana (chikpea) for four months to curb the spurt in retail prices. The suspension was later extended for another two months, after which it was allowed to lapse as prices of all four commodities showed a declining trend.
Friday’s decision to lift the futures ban paves the way for the resumption of trading in one of highest volume grossing commodities on the exchanges. Of the three national bourses, wheat was largely traded on the National Commodity & Derivatives Exchange (NCDEX), the country’s largest agriculture exchange.
Armed with the FMC order, NCDEX immediately submitted its request for new wheat contracts for trading. Exchange sources said it would be ‘compulsory contracts’ and trading could resume as early as next month.
MCX is also expected to file for resumption of trading in wheat futures on Monday and hopes to start trading by Tuesday. Asked about the lifting of the trading ban, MCX CEO & MD Joseph Massey said, “This is a positive development, which will benefit farmers as well as industry.”
“The price of a commodity depends on fundamentals and, therefore, there was no justification in continuing with the ban,” said Debjyoti Chatterjee, associate vice-president at Mape Admisi Commodities, a Mumbai-based brokerage firm.
Comfortable wheat stocks and also a massive surge in procurement during the current harvest season that started in April had also made continuing the ban redundant. India’s wheat production in 2007-08 is estimated to be around 78 million tonne (mt).
In 2008-09, according to the government’s third advanced estimate, wheat output is estimated to be more than 77 mt. Stocks on April 1 are estimated to more than 14 mt, almost 9 mt more than the buffer requirement. (Source: Financial Express)
The FMC is believed to have taken the decision to lift the futures trade ban last month, but its announcement was delayed due to imposition of the model code of conduct. It also comes ahead of the government’s move, probably next week, to ease a more than two-year ban on wheat exports.
The outgoing UPA government banned futures trade in wheat, rice, tur and urad in March 2007 under pressure from its then communist allies, who blamed the futures market for a spike in retail prices of food commodities.
However, a high-level committee constituted under the chairmanship of Planning Commission member Abhijit Sen in 2008 to study the impact of futures trading on spot prices failed to identify any direct correlation between the two. Instead, the panel recommended enlarging the futures trade as volumes for most agricultural commodities was relatively low compared to international norms.
Notwithstanding the conclusions made in the Sen report, the government in May 2008 went ahead and suspended futures trade in potato, rubber, refined soy oil and chana (chikpea) for four months to curb the spurt in retail prices. The suspension was later extended for another two months, after which it was allowed to lapse as prices of all four commodities showed a declining trend.
Friday’s decision to lift the futures ban paves the way for the resumption of trading in one of highest volume grossing commodities on the exchanges. Of the three national bourses, wheat was largely traded on the National Commodity & Derivatives Exchange (NCDEX), the country’s largest agriculture exchange.
Armed with the FMC order, NCDEX immediately submitted its request for new wheat contracts for trading. Exchange sources said it would be ‘compulsory contracts’ and trading could resume as early as next month.
MCX is also expected to file for resumption of trading in wheat futures on Monday and hopes to start trading by Tuesday. Asked about the lifting of the trading ban, MCX CEO & MD Joseph Massey said, “This is a positive development, which will benefit farmers as well as industry.”
“The price of a commodity depends on fundamentals and, therefore, there was no justification in continuing with the ban,” said Debjyoti Chatterjee, associate vice-president at Mape Admisi Commodities, a Mumbai-based brokerage firm.
Comfortable wheat stocks and also a massive surge in procurement during the current harvest season that started in April had also made continuing the ban redundant. India’s wheat production in 2007-08 is estimated to be around 78 million tonne (mt).
In 2008-09, according to the government’s third advanced estimate, wheat output is estimated to be more than 77 mt. Stocks on April 1 are estimated to more than 14 mt, almost 9 mt more than the buffer requirement. (Source: Financial Express)
Kotak may cut stake in Ahd Commex to 40%
Mumbai: The Kotak group will have to reduce its equity stake from current 51% to 40% in the Ahmedabad Commodity Exchange (ACE) within a year from the date of in-principle approval, as per the new guidelines issued for formation of national commodity exchange.
The forward markets commission (FMC) has accorded an in-principle approval to the ACE to upgrade and convert itself into a national multicommodity exchange on the basis of an application made in 2008.
With this in-principle approval, ACE has become the first regional commodity exchange to get the status. The permission has been granted on condition that ACE upgrades itself by replacing its “open outcry” system with online trading.
After getting approval for status of national commodity exchange by regulator, the Kotak Group will soon initiate the acquisition process of the ACE in-line with FMC guidelines.
As part of its plan to become corporatised and demutualised national exchange, ACE had offered 51% equity stake to Kotak Mahindra Bank in January 2008. The acquisition price per equity share of ACE was decided at Rs 321.
“We have proposed to acquire equity stake of 51% in the exchange but as per the new guidelines, we will have to reduce our stake to 40% as an anchor promoter. Firstly, we will complete our acquisition process. We will also go for the demutualisation as per the guidelines,” T Raghunath, head of group strategy for Kotak told FE.
“I think it will take atleast one or two months to complete the process of acquisition and demutualisation,” he said.
There are three major national commodities exchanges in the country, Multi-Commodity Exchange (MCX), National Commodity and Derivative Exchange (NCDEX) and National Multi Commodity Exchange (NMCE).
Apart from these three commodity bourses, India Bulls and MMTC are also jointly setting up new exchange.
“It is an important milestone in the history of commodity exchange. We would transform ourselves from a regional to national player by undertaking demutulisation process and implementing online trading system,” Pravin Thakkar, president, ACE said.
ACE, which currently trades in castor seed and cotton seed with a daily turnover of Rs 25 crore, may introduce all permitted commodities including bullion on its platform in a phase manner, he added. The exchange currently has 212 members.
As per the new guidelines, the regional commodity exchanges are not permitted to list more commodities unless the trading system is online.
In 2008, the exchange passed a resolution and proposed to issue and allot to Kotak Mahindra Bank and/or its associates or subsidiaries up to 1.02 lakh equity shares at a price of Rs 321 per equity share and up to 10.50 lakh share warrants. ACE convened an extraordinary general meeting on February 2008 to seek its shareholders approval for offering stake to Kotak Mahindra Bank. (Source: Financial Express)
The forward markets commission (FMC) has accorded an in-principle approval to the ACE to upgrade and convert itself into a national multicommodity exchange on the basis of an application made in 2008.
With this in-principle approval, ACE has become the first regional commodity exchange to get the status. The permission has been granted on condition that ACE upgrades itself by replacing its “open outcry” system with online trading.
After getting approval for status of national commodity exchange by regulator, the Kotak Group will soon initiate the acquisition process of the ACE in-line with FMC guidelines.
As part of its plan to become corporatised and demutualised national exchange, ACE had offered 51% equity stake to Kotak Mahindra Bank in January 2008. The acquisition price per equity share of ACE was decided at Rs 321.
“We have proposed to acquire equity stake of 51% in the exchange but as per the new guidelines, we will have to reduce our stake to 40% as an anchor promoter. Firstly, we will complete our acquisition process. We will also go for the demutualisation as per the guidelines,” T Raghunath, head of group strategy for Kotak told FE.
“I think it will take atleast one or two months to complete the process of acquisition and demutualisation,” he said.
There are three major national commodities exchanges in the country, Multi-Commodity Exchange (MCX), National Commodity and Derivative Exchange (NCDEX) and National Multi Commodity Exchange (NMCE).
Apart from these three commodity bourses, India Bulls and MMTC are also jointly setting up new exchange.
“It is an important milestone in the history of commodity exchange. We would transform ourselves from a regional to national player by undertaking demutulisation process and implementing online trading system,” Pravin Thakkar, president, ACE said.
ACE, which currently trades in castor seed and cotton seed with a daily turnover of Rs 25 crore, may introduce all permitted commodities including bullion on its platform in a phase manner, he added. The exchange currently has 212 members.
As per the new guidelines, the regional commodity exchanges are not permitted to list more commodities unless the trading system is online.
In 2008, the exchange passed a resolution and proposed to issue and allot to Kotak Mahindra Bank and/or its associates or subsidiaries up to 1.02 lakh equity shares at a price of Rs 321 per equity share and up to 10.50 lakh share warrants. ACE convened an extraordinary general meeting on February 2008 to seek its shareholders approval for offering stake to Kotak Mahindra Bank. (Source: Financial Express)
Diamond industry likely to recover in H2
Mumbai: Global diamond industry may start recovering from the second half of 2009 as positive signals have begun to emerge from main consuming markets, especially the US.
As other global markets show signs of bottoming, it is likely that prices of polished diamonds will firm up and perhaps a gradual recovery will ensue. The recovery is reasonably likely to begin in the second half of 2009, according to latest online survey conducted by International Diamond Exchange (IDEX).
Global polished diamond prices dipped by 10.8% in April 2009 compared to the same month a year ago. It was the fourth month that year-on-year prices dipped for polished diamonds.
All key diamond sizes experienced price deflation. The seven stone sizes represent about one-third of the trading market by value. On a year-on-year comparison, polished diamond prices for the key sizes and qualities fell from the prior year. Almost all sizes of diamonds showed a double-digit loss in April. Comparisons were difficult, since there were a string of double-digit price gains for the larger diamond sizes in 2008.
For the month of April 2009, average global polished diamond prices declined by 1.4% over average diamond prices during March 2009. The IDEX Online Polished Diamond Price Index stood at 108.40 in April 2009 against 121.51 in April a year ago, according survey report.
“Polished diamond prices globally may continue to decline, though at a more modest rate. They have dipped below the historical trend line inflation rate of 3-4% annually, though we believe that they will eventually return to this historic rate of annual inflation,” IDEX report says.
Polished diamond prices appear to have nearly leveled out, ending a free-fall that began in late 2008 and continued into early 2009 as panic selling by diamond dealers has abated.
“We believe that diamond demand and diamond prices are more likely to remain relatively untouched by potential commodity market volatility in the future, once the US and the global economies stabilise. Further, based on 50,000 or more years of demand trends, we do not expect to see any major shift in consumer demand for diamonds or other jewellery as the global economy emerges from the current recession,” report says.
There are some positive factors that that suggest polished diamond demand is firming, and polished diamond prices could stabilise, prior to potentially moving higher.
One of the key factors is that US jewelry retail sales have stabilised, so there is some optimism in the air. Rough diamond suppliers cut back on mining activities, but some appear poised to restart mining operations due to increased demand. Rough diamond suppliers have played a major role in stabilising polished diamond prices and bringing balance to the polished diamond market. Recent sales forecasts also suggest that global diamond sales will be down by only low double-digit levels in 2009. (source: Financial Express)
As other global markets show signs of bottoming, it is likely that prices of polished diamonds will firm up and perhaps a gradual recovery will ensue. The recovery is reasonably likely to begin in the second half of 2009, according to latest online survey conducted by International Diamond Exchange (IDEX).
Global polished diamond prices dipped by 10.8% in April 2009 compared to the same month a year ago. It was the fourth month that year-on-year prices dipped for polished diamonds.
All key diamond sizes experienced price deflation. The seven stone sizes represent about one-third of the trading market by value. On a year-on-year comparison, polished diamond prices for the key sizes and qualities fell from the prior year. Almost all sizes of diamonds showed a double-digit loss in April. Comparisons were difficult, since there were a string of double-digit price gains for the larger diamond sizes in 2008.
For the month of April 2009, average global polished diamond prices declined by 1.4% over average diamond prices during March 2009. The IDEX Online Polished Diamond Price Index stood at 108.40 in April 2009 against 121.51 in April a year ago, according survey report.
“Polished diamond prices globally may continue to decline, though at a more modest rate. They have dipped below the historical trend line inflation rate of 3-4% annually, though we believe that they will eventually return to this historic rate of annual inflation,” IDEX report says.
Polished diamond prices appear to have nearly leveled out, ending a free-fall that began in late 2008 and continued into early 2009 as panic selling by diamond dealers has abated.
“We believe that diamond demand and diamond prices are more likely to remain relatively untouched by potential commodity market volatility in the future, once the US and the global economies stabilise. Further, based on 50,000 or more years of demand trends, we do not expect to see any major shift in consumer demand for diamonds or other jewellery as the global economy emerges from the current recession,” report says.
There are some positive factors that that suggest polished diamond demand is firming, and polished diamond prices could stabilise, prior to potentially moving higher.
One of the key factors is that US jewelry retail sales have stabilised, so there is some optimism in the air. Rough diamond suppliers cut back on mining activities, but some appear poised to restart mining operations due to increased demand. Rough diamond suppliers have played a major role in stabilising polished diamond prices and bringing balance to the polished diamond market. Recent sales forecasts also suggest that global diamond sales will be down by only low double-digit levels in 2009. (source: Financial Express)
Sugar prices to stay firm on global cues
Mumbai: Sugar prices, spot and futures, may continue to remain firm over the next few days mainly on reports of unviable imports, firm overseas markets and reports of lower domestic supplies.
Sugar M grade 200 (Kolhapur) prices were quoted Rs 50-60 higher to trade at Rs 2,281 for May contracts and Rs 2,408 per quintal for June contracts on NCDEX over previous week due to drop in domestic output and strong international prices.
Global prices rose by 2.5% to trade over 15 cents per pound in past two weeks. Thus, landing cost of raw sugar is higher than the domestic prices. The landed cost of raw sugar in Indian ports will be in the range of $395 a tonne, whereas till now, no mill has contracted at above $330-340. London August white sugar contract moved $8 per tonne higher at $427 per tonne on Saturday.
The ex-factory cost of the processed white (imported) sugar at these rates would be around Rs 24,500 a tonne for mills close to ports and Rs 26,000 for those in Uttar Pradesh, sources said.
Spot prices were quoting higher around Rs 2,236 per quintal in Kolhapur market and Rs 2,490 per quintal in Muzaffar nagar. “Though domestic futures market showed some weakness last week, prices may continue to trade higher during the current week. Rising international prices are making the imports unviable. Talks of lower yield from Brazil’s central South crop have led New York and Liffe sugar to recover in the past few weeks, an analyst with Angel Commodities said.
“Lower output and unviable imports at current prices are likely to support the domestic sugar prices in the short to medium term with expected target of Rs 2600 per quintal,” analyst said.
Sugar M grade 200 (Kolhapur) prices were quoted Rs 50-60 higher to trade at Rs 2,281 for May contracts and Rs 2,408 per quintal for June contracts on NCDEX over previous week due to drop in domestic output and strong international prices.
Global prices rose by 2.5% to trade over 15 cents per pound in past two weeks. Thus, landing cost of raw sugar is higher than the domestic prices. The landed cost of raw sugar in Indian ports will be in the range of $395 a tonne, whereas till now, no mill has contracted at above $330-340. London August white sugar contract moved $8 per tonne higher at $427 per tonne on Saturday.
The ex-factory cost of the processed white (imported) sugar at these rates would be around Rs 24,500 a tonne for mills close to ports and Rs 26,000 for those in Uttar Pradesh, sources said.
Spot prices were quoting higher around Rs 2,236 per quintal in Kolhapur market and Rs 2,490 per quintal in Muzaffar nagar. “Though domestic futures market showed some weakness last week, prices may continue to trade higher during the current week. Rising international prices are making the imports unviable. Talks of lower yield from Brazil’s central South crop have led New York and Liffe sugar to recover in the past few weeks, an analyst with Angel Commodities said.
“Lower output and unviable imports at current prices are likely to support the domestic sugar prices in the short to medium term with expected target of Rs 2600 per quintal,” analyst said.
Castor oil export crosses 3 lakh tonne in 2008-09
Mumbai: At the time when the country’s overall growth of export started showing negative trend in some agri-commodities due to the impact of global economic crisis, export of castor oil has not only buck the trend but also registered a significant growth of 74% during the fiscal year 2008-09.
Annual exports were below 2 lakh tonne over the past five years. Castor oil is the substitute of petroleum products.
For the first time in the recent years, the total export of castor oil has crossed 3 lakh tonne mark in financial year 2008-09. Total export increased to 3.08 lakh tonne in 2008-09 from 1.76 lakh tonnes in 2007-08, up by 74% thanks to good buying from China.
“There are some enquires from China. I think the country exports about 8,000 tonne castor oil per month to China as Chinese buyers prefers small lots in containers,” said Wamanbhai Udeshi, director, Jayant Agro-Organics, a leading exporter of castor oil products.
“Shippers are offering castor oil around $1,020-1,030 per tonne (C&F basis) ex-Kandla for next month shipment,” a local broker said.
The country has so far exported about 75,000 tonne of castor oil till April during the current calendar year as fresh arrivals of new crop started in last January. Daily arrivals reached to one lakh bags (each of 75 kgs).
Traders expect export demand to continue from China. However, there are some enquiries from Europe and the US but hardly any major deals heard, sources said. The country expects 10.5-11 lakh tonne of castorseed crop for the current season. Of which, about 2.5 lakh tonne have already arrived in the major market yards of Gujarat and Rajasthan.
Shippers and stockists are major buyers in the market as they feel prices to remain firm over the next few days, a broker said.
Castorseed May contracts on NCDEX platform were up Rs 14-15 to trade at Rs 501 per 10 kg on Monday on continued buying support.
Annual exports were below 2 lakh tonne over the past five years. Castor oil is the substitute of petroleum products.
For the first time in the recent years, the total export of castor oil has crossed 3 lakh tonne mark in financial year 2008-09. Total export increased to 3.08 lakh tonne in 2008-09 from 1.76 lakh tonnes in 2007-08, up by 74% thanks to good buying from China.
“There are some enquires from China. I think the country exports about 8,000 tonne castor oil per month to China as Chinese buyers prefers small lots in containers,” said Wamanbhai Udeshi, director, Jayant Agro-Organics, a leading exporter of castor oil products.
“Shippers are offering castor oil around $1,020-1,030 per tonne (C&F basis) ex-Kandla for next month shipment,” a local broker said.
The country has so far exported about 75,000 tonne of castor oil till April during the current calendar year as fresh arrivals of new crop started in last January. Daily arrivals reached to one lakh bags (each of 75 kgs).
Traders expect export demand to continue from China. However, there are some enquiries from Europe and the US but hardly any major deals heard, sources said. The country expects 10.5-11 lakh tonne of castorseed crop for the current season. Of which, about 2.5 lakh tonne have already arrived in the major market yards of Gujarat and Rajasthan.
Shippers and stockists are major buyers in the market as they feel prices to remain firm over the next few days, a broker said.
Castorseed May contracts on NCDEX platform were up Rs 14-15 to trade at Rs 501 per 10 kg on Monday on continued buying support.
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