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SPICES

* Spices rallied in NCDEX on Tuesday. Jeera September futures jumped more five per cent to hit its highest level since January 2020. Firm demand prior to the festival season lend support. In the meantime, Coriander jumped to its highest level since September 2016 on robust demand. In the meantime, Turmeric rose to three month highs.

* Production of spices in India is likely to have risen 3.5% on year to 10.5 million ton in 2020-21 (Jul-Jun), according to data from Spices Board India.

* Jeera production is seen at 856,505 ton in FY 2020-21, down 6.1% on year according to the Spices Board.

* India exported 299,000 tn of jeera in 2020-21, up 40% on year according to the Spices Board.

* According to a survey conducted by the Federation of Indian Spice Stakeholders, jeera production in India is likely to be 478520 tons in 2020-21 (Oct-Sep), down by 11 per cent yoy.

* The Spices Board has pegged coriander production at 822,210 tn, up 17.3% on year.

* According to Spices Board, Coriander exports from India were up 21% on year at 57,000 ton.

* Government sees 2020-21 coriander output at 720000 tons compared to 701000 tons a year ago.

* Coriander production in Gujarat is expected to rise 55 per cent to 216680 tonnes in 2020-21 season (Jul-Jun) due to sharp rise in acreage according to the state’s farm department’s second advance estimates.

* Spices Board sees exports of turmeric up 33% to 183000 tonnes in FY 2020-21 on yoy basis.

* Government sees 2020-21 turmeric output at 1.11 million tonnes compared to 1.15 million tons a year ago.

* Spices Board pegs FY21 small cardamom export 6,500 ton, up 251% on year.

* Output of small cardamom is seen rising by 100% on year to 22520 tons according to the Spices Board.

OILSEED

* All commodities in the oilseed complex rose yesterday. Sep RM seed prices extended higher on improved demand for mustard oil in the spot market amid lower supply. Sep Soybean futures prices extended its positive momentum on concerns overall fall in output during this season along with tight supply in the domestic market. CPO MCX Aug futures traded higher tracking gains in International BMD Malaysian palm oil futures prices along with improved domestic demand ahead of upcoming festivals. While, Refined Soy oil Sep futures prices up on rise in domestic demand.

* The government allowed the import of 1.2 mln tn of genetically-modified soymeal till Oct 31 to augment supply in domestic markets, the Directorate General of Foreign Trade said in a notification.

* The government has slashed duty on import of both crude and refined soyoil and sunflower oil till Sep 30 to boost supply, according to an official notification issued. The government has cut import duty on crude soyoil and sunflower oil to 7.5% from 15%. It also slashed duty on imports of refined versions of both soyoil and sunflower oil to 37.5% from 45%, as per the notification.

* Area under soybean in the 2021-22 (Jul-Jun) kharif season was up by 1% on year at 12.1 mln ha so far, according to data released by the farm ministry.

* India's vegetable oil imports fell 35.4% on year to 980,624 tn in July, the Solvent Extractors' Association of India. During Nov-Jul, the country imported nearly 9.7 mln tn of vegetable oil, down 2% from the year-ago period.

* The farm ministry in its fourth advance estimates cut the output estimate of soybean crop to 12.6 mln tn from 13.4 mln tn pegged in the third advance estimates.

* India's oilmeal exports declined 11% on year to 203,612 tn in June, according to data from The Solvent Extractors' Association of India today. For Apr-Jun, overall exports of oilmeal rose 27% on year to 735,312 tn.

* India's 2020-21 (Jul-Jun) mustard output is seen rising 22.6% on year to 8.95 mln tn, according to a joint survey by the Central Organisation for Oil Industry and Trade and the Mustard Oil Producers' Association.

* The government has slashed import duty on crude palm oil, refined, bleached and deodorised palm oil, palmolein, palm stearin and other palm oils with effect from Wednesday until Sep 30. Govt cuts import duty on crude palm oil to 10% and RBD palm oil & RBD palmolein to 37.5%.

* Soymeal exports in July declined 73.1% on year to 25,000 tn, according to a release from the Soybean Processors Association of India. Overseas shipments of soymeal fell because of tepid demand from traditional buyers. Importers are turning to South American countries for cheaper soymeal. Higher domestic soybean prices due to paucity of stocks in spot markets jacked up export prices. During Oct-Jul, soymeal exports were at 1.93 mln tn against 687,000 tn during same period last year.

* India's 2020-21 (Jul-Jun) mustard output is seen rising to 22.6% on year to 8.95 mln tn, according to a joint survey by the Central Organisation for Oil Industry and Trade and the Mustard Oil Producers' Association.

* The US Department of Agriculture has scaled down its estimate for global oilseed production in 2021-22 to 629.5 mln tn from 635.4 mln tn projected in July. The downward revision is due to lower production of canola in Canada and sunflower seed in Russia. Canada's canola crop estimate has been lowered by 4.2 mln tn to 16 mln tn due to drought in the Canadian Prairies. The estimate for Russia's sunflower seed crop has been cut by 1.0 mln tn to 15.5 mln tn due to dry weather conditions. However, the US agency has scaled up its forecast for Ukraine's sunflower seed output, as a wet spring followed by good rains in southern Ukraine in June and July improved yield potential. The agency also scaled down its global soybean output view to 383.6 mln tn from 385.2 mln tn in July. Global soybean ending stocks are now pegged higher at 96.2 mln tn, against the previous estimate of 94.5 mln tn. The agency cut its soybean output estimate for the US to 118.1 mln tn from 119.9 mln tn in July.

* Crushing of mustard seeds by oil millers declined over 31% on year to 550,000 tn in July, data from Marudhar Trading Agency. Mills had crushed 800,000 tn of the oilseed during the same period last year, and in June this year, they crushed 600,000 tn of mustard. Low arrivals in physical markets hit crushing operations. Arrivals of the oilseed fell to almost 500,000 tn in July from 640,000 tn a year ago.

* India is likely to produce around 10 mln tn of mustard in 2020-21 (Jul-Jun), up 35% from a year ago, due to higher acreage and favourable weather conditions, according to the Solvent Extractors' Association of India.

* Farmers in the country have sown mustard across 6.9 mln ha, up 10.6% on year, in 2020-21 (Jul-Jun) season so far, data from the farm ministry.

* Indian government slashed import duty of crude palm oil. The government cut import duty on crude palm oil by 10% to 27.5%, in the last week, to cool off soaring edible oil prices in domestic markets.

* India is likely to grow a record 10 mln tn mustard crop in 2020-21 (Jul-Jun), mainly due to the likelihood of a sharp rise in acreage, according to Solvent Extractors' Association of India. The government has targeted an alltime high crop of 12.5 mln tn for this rabi season. The government has fixed the minimum support price at 4,650 rupees per 100 kg for 2020-21 (Apr-Mar) marketing season against 4,425 rupees per 100 kg the previous year.

* According to the first advance estimates for 2020-21 (Jul-Jun), castor seed output is seen at 1.7 mln tn compared with 1.8 mln tn in the fourth advance estimates for 2019-20, according to the data released by the farm ministry. While, according to traders, crop is seen at 1.5-1.6 mln tn. Farmers have sown castor seed across 792,000 ha in 2020-21 (Jul-Jun), down 16% from a year ago.

* India's exports of castor oil rose 18.7% on year to nearly 650,000 tn in 2020-21 (Apr-Mar), said B.V. Mehta, executive president, The Solvent Extractors' Association of India. Exports were at 547,646 tn in 2019-20.

* Malaysia's crude palm oil output fell 5.2% on month to a little over 1.5 mln tn in July, data from the Malaysian Palm Oil Board showed. Total palm oil stocks in the country decreased 7.3% on month to around 1.5 mln tn. The export of palm oil in July fell 0.8% on month to 1.4 mln tn, while that of biodiesel fell 40.2% on month to 23,838 tn. Palm oil is used to make biofuel.

* During Aug 1-20, exports of palm oil from Malaysia fell 8.7% on month to 788,211 tn, according to the latest data by cargo surveyor AmSpec

COTTON

* The area under cotton across the country in the 2021-22 (Jul-Jun) season was at 11.7 mln ha as of Thursday, down by 8.3% from a year ago, data from the farm ministry showed.

* The US Department of Agriculture has scaled down its estimate for global production of cotton in 2021-22 (Aug-Jul) to 118.8 mln bales (1 US bale = 218 kg) from 119.4 mln bales projected a month ago. The downward revision in global production estimate is mainly due to a likely lower crop in the US, Brazil and Uzbekistan. In the US, production is seen at 17.3 mln bales in 2021-22 compared with 17.8 mln bales estimated earlier. Global cotton consumption is seen a tad higher at 123.3 mln bales in 2021-22, driven by a likely rise in demand from Bangladesh and Pakistan. Global exports are estimated at 46.3 mln bales, higher than the earlier projection of 45.9 mln. The agency has lowered its 2021-22 global ending stocks estimate to 87.2 mln bales from 87.7 mln bales. The output estimate for India, the top producer, is maintained at 29.0 mln bales for 2021-222. Consumption for the country is seen at 25.5 mln bales. The average price for US upland cotton is expected to rise by 5 cents per pound to 80 cents during the current season, highest since 2011-12, the agency said.

* The Cotton Association of India has scaled up its export estimate for 2020-21 (Oct-Sep) to 7.7 mln bales (1 bale = 17 kg) from 7.2 mln bales projected earlier. In the current marketing year, India shipped around 7.0 mln bales till July. The association has also raised its domestic consumption view to 33.0 mln bales, from 32.5 mln bales estimated earlier. It has lowered its ending stock estimate to 8.3 mln bales, against 9.4 mln bales. Production and import estimates for the year are seen at 35.5 mln bales and 1.0 mln bales, respectively. Production in the northern region, which includes Punjab, Haryana and Rajasthan, is seen at 6.6 mln bales. In the central zone, which includes Gujarat, Maharashtra and Madhya Pradesh, the output is estimated at 19.4 mln bales. In the southern region, production is pegged at 9.1 mln bales. Of the total crop, around 34.9 mln bales had arrived in markets across India till July.

* The USDA has maintained its estimate for cotton output in India at 29.0 mln bales (1 US bale = 218 kg) in 2021-22 (Aug-Jul). The estimated production is up 2.5% on year, the agency said in a monthly report. The area under cotton is seen at 12.9 mln ha in 2021-22, compared with an estimated 13.0 mln ha the previous year. As of Aug 5, farmers in India had sown cotton across 11.6 mln ha in the 2021-22 (Jul-Jun) season, down 6% on year. India's cotton consumption in 2021-22 is projected at 25.5 mln bales, 6% higher on year. Export estimate is seen at 6.2 mln bales, down 1.5% on year. Bangladesh, China, Vietnam and Indonesia are top cotton export destinations. Imports for India in the 2021-22 crop year are also maintained at 1.0 mln bales. The closing stock of cotton for the country has been pegged at 14.0 mln bales, compared with 14.3 mln bales estimated in the previous month.

* A slow progress of the southwest monsoon in the first half of July and unequal spread subsequently may prompt farmers to shift to cotton and maize from oilseeds in 2021-22 (Jul-Jun), CRISIL Research said in a report.

* India's cotton exports remained subdued in July as record high prices in the domestic markets made Indian product uncompetitive, trade officials said. India exported 350,000-400,000 bales (1 bale = 170 kg) of cotton in July, largely steady from June, but almost half of the 700,000-800,000 bales exported each in March and April.

* The International Cotton Advisory Committee has scaled up its forecast for global prices in 2021-22 (AugJul) as ending stocks for the ongoing season are estimated to be lower. The committee has reported that the overall economic recovery, a rejuvenated textile and apparel sector and a demand-led increase in cotton exports have resulted in a lower beginning stocks for 2021-22 season at 20.9 mln tn. In 2021-22 season, the committee has estimated global consumption at 25.8 mln tn, compared with 25.6 mln tn last. Global exports are seen marginally lower at 10.2 mln tn, compared with 10.4 mln tn a year ago. Global ending stocks for the season are estimated at 20.2 mln tn, compared with 20.9 mln tn in the previous season. Global production for the ongoing season is estimated at 25.1 mln tn, up 3% from the previous season. The rise in estimate has largely been attributed to a sharp rise of around 22% in production in the US. Production in India, is expected to be 5.9 mln tn, compared with 6.1 mln tn in the previous year. In the US, cotton production is estimated at 3.9 mln tn, against 3.2 mln tn a year ago.

* The UK-based Cotton Outlook has scaled up its estimate for global production in 2021-22 (Aug-Jul) by 520,000 tn to 25.8 mln tn in its July report. The estimate has been revised upwards as production in the US and Australia is expected to be higher due to favourable weather conditions. Output in US has been scaled upwards by 330,000 tn to 3.9 mln tn. Cotton production in India, is seen at 6.3 mln tn. The agency has also scaled up its estimate for global consumption in 2021-22 by 100,000 tn to 26.0 mln tn owing to strong demand from Bangladesh and Turkey.

* In the Union Budget for 2021-22 (Apr-Mar), Finance Minister Nirmala Sitharaman proposed customs duty of 5% on cotton and 10% on cotton waste. She also proposed an Agriculture Infrastructure and Development Cess of 5% on cotton, taking the overall customs duty to 10%. Customs duty on raw silk and silk yarn or yarn spun from silk waste has been increased to 15% from 10% earlier.

* The area under major kharif crops so far in 2020-21 (Jul-Jun) was at 111.7 mln ha, up nearly 5% from a year ago, farm ministry data showed. Farmers have sown cotton across 13.04 mln ha in the 2020-21 (JulJun) season, up by 2.1% from a year ago, as of 25th Sept., farm ministry.

* India's cotton output in the 2020-21 (Oct-Sep) marketing year is seen at 38.0 mln bales (1 bale = 170 kg), up 4% on year, according to traders' pegs 2020-21 cotton crop at 37.1 mln bales vs 35.5 mln bales.

OTHERS

* 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.

* NCDEX has also been directed to not take any new positions for the running contracts, and only squaring up of positions will be allowed on the platform with immediate effect, according to the official release.

* Govt. procures nearly 700000 tons of chana in 2021-22 rabi marketing season

* The government exempted pulse importers from stockholding limits, but they are still required to declare their stocks on the Department of Consumer Affairs portal, an official release said. On Jul 2, the government imposed stockholding limits on pulses, barring moong, to curb the rise in prices. The limits, which were to be effective till Oct 31, had been applied on wholesalers, millers, retailers and importers. The government has also revised upwards the stockholding limits for wholesalers to 500 tn, provided there isn't more than 200 tn of one variety, the release said. The limit that had been imposed on wholesalers earlier was 200 tn, provided there was not more than 100 tn of one variety of pulse. For millers, the limit now will be the last six months of production or 50% of annual installed capacity, whichever is higher, the release said. Earlier, the limit was three months of production or 25% of annual installed capacity, whichever was higher. All the stakeholders--wholesalers, retailers, millers, and importers--are required to reduce the stocks with them to the prescribed limit within 30 days after they declare excess stocks, the release said. The government has procured 545980 tons of chana harvested in 2020-21 rabi season.

* Rally in guar complex continued on Tuesday as well. Guarseed September futures climbed to its highest level since September 2014, while guargum September futures hit its highest level since November 2018. Amidst lower acreage in the major growing state of Rajasthan, unfavourable weather and robust demand from the poultry sector lend support.

* As of 17 Aug 2021, the area under guar stood at 2012.45 thousand hectares compared to 2389.10 thousand hectares sown during the same period last year in the major growing state of Rajasthan, according to the data released by Rajasthan state agriculture department.

* According to Gujarat State farm department, area under guar stood at 1,05,704 hectares as of August 17, 2021 compared to 1,07,584 hectares during the same period last year.

* India’s guar gum exports declined in the month of June 2021 by 8.03% to 18,707 tonnes compared to 20,340 tonnes during June 2021 at an average FoB of US $ 1589 per tonne in the month of May 2021 as compared to US $ 1676 per tonne in the month of May 2021. Further, the gum shipments were up by 30.29% in June 2021 compared to the same period last year. Of the total exported quantity, around 4,152 tonnes is bought US, Russia (6,042 tonnes), Germany (1,551 tonnes) and China 1033 tonnes.

* Firm moves were witnessed in MCX rubber futures on Tuesday, while RSS4 grade rubber in the spot market traded steady near Rs.179.50 a kg.

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