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SPICES

* A mixed trend was seen in NCDEX spices complex on Thursday. Jeera August futures hit its highest level in more than three months before retreating to end the session in red. Coriander and turmeric futures declined on tepid demand.

• The National Commodity & Derivatives Exchange has received approval from the Securities and Exchange Board of India to launch options in goods contracts on turmeric, jeera and coriander, it said in a circular issued late Wednesday. The options in goods contract on the three commodities expiring in Aug-Nov will be available for trading from Friday. The transaction charge will be 30 rupees per 100,000 rupees of premium value. As per the contract specifications, the trading and delivery unit for turmeric and coriander is 5 tn each, while for jeera it is 3 tn. The options contract will be launched a day after the futures contract with the same underlying is launched. Upon the expiry of the contract, the outstanding open position shall result in compulsory delivery. The final settlement price and the expiry date are the same as the corresponding futures contract.

• The export of spices from India during 2021-22 declined nearly 13 per cent on year to 1,531,154 ton, according to data from the Spices Board India. In terms of value, exports dipped by about 1.25 per cent to 3,057,644.24 rupees. Export of chilli, turmeric, jeera, coriander, fenugreek declined, while that of pepper, cardamom, ginger and fennel rose.

• India exported 153,154 ton of turmeric in in FY 2021-22, down 16.70% on year. Coriander exports were down 15.16% on year at 48,658-ton, data showed.

• The exports of jeera during declined 27.28% on year to 216,996 ton. Export of small cardamom jumped by 63 per cent to 10,572 ton year on, while that of pepper rose 9.5 per cent.

• The export of spices from India during Apr-Dec declined 7.5% on year to 1.2 mln tn, according to data from the Spices Board India. In terms of value, exports rose marginally to 230.7 bln rupees. Sluggish demand for chilli, jeera, turmeric, coriander and fenugreek weighed on exports.

• The exports of jeera during Apr-Dec declined 24.5% on year to 173,796 tn, from 230,120 tn a year ago. • India exported 116,408 tn of turmeric in Apr-Dec, down 20.6% on year. Coriander exports were down 12.8% on year at 37,566 tn, data showed.

• Exports of small cardamom rose 68.3% on year to 7,337 tn. The huge rise was also seen in ginger exports, which rose 57.5% on year at 130,091 tn.

• Exports of chilli in Apr-Dec were down 7.6% on year at 435,725 tn, while mint product exports were at 21,386 tn, up 4.8% on year, according to the data.

• According to the second advance estimates by Gujarat state agriculture department, jeera production is seen declining to 236980 tons in 2021-22, down 41 per cent year on year. Area is seen at 289000 ha as against 473800 ha a year ago. Coriander production is seen declining as well to 211680 tons compared to 221240 tons in 2020-21.

COTTON

• Farmers have sown kharif crops over 40.66 mln ha so far in the 2022-23 (Jul-Jun) season, down 9.3% from the previous year due to slow pace of the monsoon, farm ministry data showed. The area under cotton across the country in the 2022-23 (Jul-Jun) season was over 8.46 mln ha, marginally lower than a year ago.

• UK-based Cotton Outlook has revised downward its estimate for global cotton production in 2022-23 (Aug-Jul) by 108,000 tn to 26.3 mln tn, the agency said in a report. The revision has been made as production in the US is expected to be lower due to severe drought, which is likely to affect the yield. Production in the US is seen at 3.5 mln tn, compared with 3.6 mln tn projected in May. Production of cotton in India and China is seen steady at 6.0 mln tn and 5.8 mln tn, respectively. The agency has also lowered its estimate for global consumption in 2022-23 by 755,000 tn to 25.2 mln tn due to fall in demand from most major consuming countries.

• The Cotton Association of India has revised downward its production estimate for the 2021-22 (Oct-Sep) marketing season to 31.5 mln bales (1 bale = 170 kg), from 32.4 mln bales projected a month ago, it said in a release. The cut in estimate can be attributed to some crop loss because of excess rains in November in the key producing states that hit quality of the crop. Of the total crop, 28.8 mln bales had arrived in markets across India till May. Estimate for exports in the current marketing year has been maintained at 4.0 mln bales. India shipped around 3.8 mln bales of cotton till May, the association said.The association has also lowered its estimate for domestic cotton consumption to 31.5 mln bales, while imports for the season are pegged at 1.5 mln bales. The ending stock for the 2021-22 season has now been estimated at 4.7 mln bales, as against 5.4 mln bales projected a month ago, the release said.

• The area under cotton in northern parts of India, mainly in key producers Haryana and Punjab, is expected to decline in the 2022-23(Jul-Jun) season, according to back-of-the-envelope calculation based on government data from state farm departments.

• The US Department of Agriculture has raised its estimate for global cotton production to 121.3 mln bales (1 US bale = 218 kg) for 2022-23 (Aug-Jul), from 121.1 mln bales projected a month ago. The increase in estimate is attributed to rise in production in Egypt and West Africa, the agency said in its World Agricultural Supply and Demand Estimates report for June. Global cotton consumption is seen lower at 121.5 mln bales in 2022-23, compared with 121.9 mln bales a month ago, due to fall in demand from Mexico, Bangladesh, and Vietnam. Global exports are estimated at 47.5 mln bales, as against 47.6 mln bales a month ago. The agency has maintained its 2022-23 global ending stocks estimate at 82.8 mln bales. For India, the agency has maintained its estimate for production and domestic consumption for 2022-23 at 27.5 mln bales and 25.5 mln bales, respectively. Exports for the coming season are seen at 4.0 mln bales. Cotton ending stock in India is seen at 7.5 mln bales for 2022-23, marginally lower from 7.6 mln bales projected a month ago. The average price for US upland cotton during 2022-23 season is seen at 95 cents per pound, up by 5 cents from the previous month.

• Global cotton production for 2022-23 (Aug-Jul) is seen at 26.13 mln tn, around 1% higher compared to ongoing season, the International Cotton Advisory Committee has said in a report. The increase in production is led by a 25% rise in Pakistan's cotton production. Cotton production in the US is estimated at 3.6 mln tn in the coming season, as against 3.8 mln tn in 2021-22. The fall in production is attributed to lower acreage and unfavourable weather. The National Weather Service in the US is currently reporting the West Texas area as being in the "exceptional drought" category, it said. Global cotton area in 2022-23 season is estimated to decline by 1% on year to 32.8 mln ha. Area under cotton in the US is seen declining by 11%, followed by 5% in Australia and 1% in Brazil. Elsewhere, India is once again the global leader in area followed by the US, China, Pakistan and Brazil. "The high price of fertilisers and the high cost of fuel is undoubtedly influencing planting decisions all over the globe.The committee sees global consumption a tad lower at 26.09 mln tn in 2022-23. Global production is currently projected to outpace consumption, putting downward pressure on prices and potentially stabilising the volatility in prices. However, the production surplus is marginal and could likely change as the season matures. If production falls significantly below consumption, prices are very likely to remain elevated and the volatility will continue.

• The committee sees global exports for the 2022-23 season at around 10.03 mln tn, as against 10.09 mln tn in 2021- 22. Global ending stocks are estimated at 20.38 mln tn, slightly higher than 20.34 mln tn in 2021-22.

• India's cotton imports have gathered pace after the government exempted customs duty on the commodity on Apr 13. Indian traders and mills have bought 400,000-500,000 bales (1 bale = 170 kg) of cotton after the duty removal, trade officials said. .

• India's cotton acreage in 2022-23 (Jul-Jun) is expected to rise 9% on year to 13.2 mln ha, as per the median of the estimates of 10 prominent players in the cotton value chain polled by Informist.

• Stakeholders in the textile industry have urged the government to extend duty-free cotton imports till Dec 31 to boost textile exports and help address the dearth of raw material in the market.

• India's cotton output in the 2021-22 (Oct-Sep) marketing year is seen at 36.2 mln bales (1 bale = 170 kg), as per the median of estimates of 13 prominent players in the cotton value chain polled by Informist.

OTHERS

• As per official sources, National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) has procured 24,18,016 MT Chana as of 9th June, 2022. The States where procurement has been done are: Gujarat (558,642 MT, procurement closed), Maharashtra (NAFED-6,62,484 MT, procurement closed & FCI72,466 MT), Madhya Pradesh (8,05,000 MT), Rajasthan (1,60,586 MT), Karnataka (73,867 MT, procurement closed), Andhra Pradesh (71,353 MT) and UP (13,618 MT). Chana procurement is being done at the MSP of INR 5,230 per quintal. Total procurement target is 29 lakh MT.

• According to the recent report by Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), Chickpea sowing area in the country is estimated to decrease to mere 4,43,000 hectare, down by 28% from 616,000 hectares while production is likely to fall by 43% to 606,000 MT from 1.062 MMT this year. • Latest data by Australia Bureau of Statistics reveals that Chickpea export from Australia has increased marginally to 31,499 MT, up by 3.67% in April from 30,383 MT previous month. However, total volume of export during the Marketing Year has reduced by 38% to mere 3,50,951 MT compared to same period last year. Bangladesh emerged as a major buyer for Chickpea with buying 15,941 MT followed by Nepal (4,933 MT) and United Arab Emirates (2,418 MT).

• The Securities and Exchange Board of India has asked the National Commodity and Derivatives Exchange to not launch any new chana contracts on its platform till further notice, the market regulator said in a release on August 16, 2021.

• India’s guar gum exports increased in the month of May’2022 by 36.42% to 27,748 MT compared to 18,971 MT during previous month. However, the gum shipments were up by 46.27 % in May’2022 compared to the same period last year. Out of the total exported quantity, around 8541 MT (30.78%) bought by US, Russia bought 4,686 MT (16.89%), China 3,618 MT (13.04%), Germany 3,408 MT (12.28%). Export demand was driven by bullish crude oil prices. We expect Guar export in June’22 at 25,000-28,000 tonnes.

• India’s Guar split exports increased in the month of May’2022 by 731% to 5,347 MT as compared to 643 MT previous month. However, the guar split shipments down by 50.66% in May’22 compared to the same period last year at 10,838 MT. Out of the total exports, around 3,800 MT (71.07%) bought by China, US 860 MT (16.08%), We expect guar split export in June at 4,000-5,000 tonnes. Total guar exports in May’22 recorded up by 6% to 33,095 MT as compared to 31,178 MT previous year same period amid bullish crude oil prices and increase in oil rig count. However, cumulative exports till May’22 still up by 12% to 200284 MT as compared to previous year same period at 179386.

• According to ANRPC, the global supply of natural rubber (NR) has further improved to 991,000 tons in May 2022 and resulted to a lower supply shortage to 198,000 tons with global demand estimated at 1.189 million tons during the same reference period.

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