Market Reports: India to consider allowing extra wheat exports on June 24, 2013

India could add another 2 million tonnes of wheat for export in a successful

tender scheme as private traders shun more expensive direct sales,

bringing the total offered to 6.5 million tonnes.

The decision, which could dampen global prices further and help the

world's second-biggest wheat producer cut swollen stocks, may come at a

cabinet meeting on Friday, Food Minister K.V. Thomas told Reuters on

Wednesday.

India's wheat stocks, built up to back welfare programmes to give cheap

food to the poor, hit 44 million tonnes on June 1, about a quarter of global

totals. As the monsoon starts, these are more at risk to rain as well as

rodent damage.

"We had allowed exports of 4.5 million tonnes and almost the entire

quantity has been shipped out, and now we are considering allowing

another 2 million tonnes with same floor price of $300 per tonne," Thomas

said.

Three state-owned companies - PEC, State Trading Corp. and MMTC Ltd -

have sold the grain via tenders, with the last round offering a total 290,000

tonnes this week. They would also sell the extra 2 million tonnes.

India has offered another 5 million tonnes of wheat direct to private traders

but no deals have been done here because the floor price is considered

unattractive, given the extra transportation costs.

There are also quality constraints as India's wheat is used to make flat

breads, unlike the high-protein U.S. soft white wheat which Japan and

South Korea prefer. Most of India's wheat goes to Middle East and African

buyers.

Extra supplies could nevertheless dampen global prices further. The

benchmark CBOT price continues to trade not far from 2013 lows even

though worries that wet weather would delay the U.S. winter harvest have

edged levels higher this week.

Chicago Board of Trade July wheat rose 0.66 percent to $6.85 a bushel by

0324 GMT, having closed little changed in the previous session.

The cabinet will also consider selling 10 million tonnes of wheat to

domestic bulk buyers and to states for distribution to the poor, Thomas

said. This would be priced at 15,000 rupees per tonne, down from $300 for

a previous sale of 6.5 million tonnes.

But Thomas dashed any hopes the export floor would be lowered. ………

"We have been successful in exporting about 4.5 million tonnes of wheat

despite the fact that our wheat is slightly expensive. This shows that our

wheat is gradually gaining acceptance globally," Thomas said.

"We have been able to convince foreign buyers that our wheat is fit for

human consumption," he added.

Please email your requirement of Indian wheat ...

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(International Broker for Grains, Pulses, Rice, Oil seeds, Oils, Extractions / Feed Mill Ingredients,  Sugar, Cattle Feeds & Cotton)

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India Wheat Buying Stumbles

The Indian government's wheat procurement this year has missed its estimate by nearly half, which may put pressure on Prime Minister Manmohan Singh's administration as it prepares to roll out a food-security law.

Lower purchases would also whittle surplus stocks available for exports. India has emerged as a leading exporter of wheat in the past few months.

The government is now expected to procure about 25 million metric tons from farmers this year compared with its initial estimate of 44 million tons to 45 million tons, said senior government officials who didn't wish to be named.

Enlarge Image

"We really don't know why the procurement is so low. Maybe private companies bought more from farmers this year," a food ministry official said. "We are not worried as we have abundant stocks."

Wheat and rice are India's top two grain staples. Although the country has sufficient stocks of food grains, the government might find itself in a corner if summer-sown rice output declines.

Stocks will likely come under pressure as soon as the government pushes ahead with its ambitious food-security law that promises the right to nearly free grains to about 70% of the country's more than 1.2 billion people.

The government is debating if it should implement the law through an executive decision or after a general debate in Parliament.

Government officials said the lower purchase wasn't due to a drop in production. Initial estimates have pegged output at 93.6 million tons this year, near a record high.

"The production is going to be around that level," said Indu Sharma, director of the state-run Directorate of Wheat Research.

Excessive winter rains hurt output in the breadbasket northern states of Punjab and Haryana, but that had been offset by a bigger crop in states such as Madhya Pradesh and Uttar Pradesh, she said.

However, private traders said the government's production estimates may be wide off the mark.

"I think the overall crop production is low this year," said a senior Mumbai-based executive of an international commodities trading firm. It is probably much below 90 million tons, said the executive.

"We are close to the end of the procurement season, but there is just no wheat available in the market," the executive said. "It's a lie that private traders are buying up all the wheat."

Traders also said it didn't make sense to compete with government agencies to buy aggressively as state-fixed prices are much higher than international rates.

India's government pays a minimum price to farmers for certain staples such as wheat and rice to ensure there is no supply shortage

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Indian wheat seen higher as arrivals fall

Indian wheat futures are likely to stay higher this week as arrivals of the new season wheat are gradually winding down, with the government buying up the bulk of the grain brought to wholesale markets by farmers.

n Wednesday, the most-active wheat contract for June delivery ended 0.57 percent up at 1,593 rupees per 100 kg on the National Commodity and Derivatives Exchange.

India is set to produce 93.62 million tonnes of wheat in 2013, the farm ministry said in a forecast earlier this month. State-run Food Corporation of India, the main grain procurement agency, will buy about 30 million tonnes of the total output, government officials said.

"Arrivals are slowly falling and the FCI will buy at least 30 million tonnes of wheat so the open market will have only the rest of the total production," said Chowda Reddy, a senior analyst at JRG Wealth Management.

The latest output estimate after the harvest season is lower than last year's record 94.88 million tonnes, but more than the annual consumption of about 76 million tonnes.

India has offered a total of 9.5 million tonnes of wheat for export as it tries to cut stocks. The government needs some stockpiles to supply its programme of subsidised food for the poor but incentives to farmers have boosted outputs.

This is the sixth straight year when wheat production is seen exceeding demand.

India grows wheat once a year with planting in October and harvesting in March-April.

India's May 1 wheat stocks at government warehouses surged more than 76 percent to 42.7 million tonnes from April, increasing pressure on the world's No. 2 producer to boost exports and cut down huge stocks. (Reporting by Pankaj Katba)

Dear All Exporter and Importer of wheat, Sugar, Rice, & Cotton exports. Today govt of India announce new exports policy for above commodities.

Important Point:

1. Indian exporter requires to take Registration certificate (R.C) before every export trade for above commodities

2. For exports trade must be done in LC or Advance payment. Its requires to take RC.

we will email you official DGFT notification on your request by sms or email

Regards 
Pankaj Katba feed Grain Agri Brokers 

Cell No : +91-88-6666-3400, +91-98246 -01900, +91 99251-77699

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World Grain Outlook Raised by IGC on China Corn, India Wheat 

The world’s grain harvest will be bigger in the 2013-14 season than predicted a month ago on increased estimates for corn in China and larger wheat crops in India and Canada, the International Grains Council said.

Output of grains excluding rice may rise to 1.92 billion metric tons from an estimated 1.79 billion tons in 2012-13, the London-based IGC wrote in its monthly market report today, raising its outlook for the new harvest by 10.3 million tons.

The outlook for rising grain production in the U.S., Europe and the Black Sea region has hurt corn and wheat prices. Corn is the second-worst performer on the S&P GSCI Commodity gauge behind silver this year, sliding 19 percent.

For corn, “carryovers in 2013-14 will be much more comfortable compared to the previous year, especially in the U.S., where stocks are expected to more than double,” the grains council wrote.

World corn production may jump 10 percent to 944.6 million tons from 855.7 million tons in 2012-13, the IGC forecast, raising the outlook by 5.7 million tons. That will boost ending stocks to 149 million tons from 122 million tons, it said.

The outlook for China’s corn crop was lifted by 4 million tons to 214 million tons, climbing from production of 208 million tons in the previous season. U.S. farmers may gather 355 million tons of corn from 273.8 million tons in 2012, the IGC forecast, cutting its outlook by 2 million tons.

The European Union’s corn harvest may jump to 64.4 million tons from 54.8 million tons on production gains in Romania and Hungary, which suffered from drought last year, while Brazil’s output may fall to 72 million tons from 78 million tons.

Corn

Global trade in corn may climb to 97.5 million tons from 94.5 million tons, with imports by China advancing to 7 million tons from 4 million tons. EU overseas purchases are predicted to fall to 6.5 million tons from 10 million tons.

The U.S. is expected to reclaim its spot as the world’s biggest corn exporter from Brazil, with shipments climbing to 32 million tons from 21.5 million tons. Brazil’s corn exports are seen falling to 20.5 million tons from 27 million tons.

Farmers across the world are forecast to reap 682.1 tons of wheat, 4.1 percent more than a 2012-13 crop estimated at 655.1 million tons and 2.2 million tons more than predicted last month, according to the IGC.

Stocks of the world’s most-traded grain are seen climbing to 180 million tons from 178 million tons.

Wheat production in the EU may climb to 137.1 million tons from 130.3 million tons on bigger crops in Spain and Romania, even as the U.K.’s harvest is predicted to slide to 11.8 million tons from 13.3 million tons.

Production Up

Russia, Ukraine and Kazakhstan are all forecast by the IGC to boost wheat production, with farmers in the former Soviet Union lifting output to 99.9 million tons from 77.2 million tons.

The U.S. wheat crop will probably decline to 52 million tons from 61.8 million tons, while Canada’s may rise to 29 million tons from 27.2 million tons, according to the IGC, which raised the forecast for the latter by 1 million tons.

“Although there is continued uncertainty about harvest prospects in some major producers, global wheat availabilities are still set to be ample over the year ahead,” the IGC said.

China’s harvest, the world’s biggest, may drop to 118 million tons from 120.6 million tons, the IGC forecast. India may produce 93.5 million tons of wheat, down from 94.9 million in 2012 and 1 million tons more than predicted a month ago.

Global wheat trade is expected to fall to 136.8 million tons in 2013-14 from 138.5 million tons in the previous season, with Russia cutting imports to 100,000 tons from 1.2 million tons on a bigger domestic harvest.

Barley production worldwide is forecast to climb to 137.7 million tons from 129.7 million tons, lifted by bigger crops in Russia, Ukraine, Turkey and Morocco, according to the IGC.

Thanks & Best Regards

Pankaj Katba

Feed Grain Agri Brokers  

(International Broker for Grains, Pulses, Rice, Oil seeds, Oils, Extractions / Feed Mill Ingredients,  Sugar, Cattle Feeds & Cotton)

905, Star Plaza,  Phulchhab Chowk , Rajkot 360 001 Gujarat – INDIA

Tel       : +91 -281- 3065002 Fax: +91 -281- 3065002

Cell No : +91-88-6666-3400, +91-98246 -01900, +91 99251-77699

E-mail  :  Pankaj@FeedGrainAgri.com  & FeedGrainAgri@Gmail.com

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