Agri Commodity Technical Report 15 December 2023 - Geojit Financial Services
MARKET NEWS/UPDATES
* Farmers in Telangana have sown rabi crops over 797,479 acres as of Wednesday, up 3.6% from 769,348 acres a year ago, according to data from the state government. One acre is about 0.40 ha. So far, nearly 14.5% of the average rabi crop area of 5.5 mln acres in the state has been covered, the data showed. The area under pulses fell 21.6% on year to 251,984 acres so far. Acreage of Bengal gram was down 22.2% on year at 223,409 acres. The acreage under black gram was at 23,624 acres compared to 25,308 acres a year ago, the data showed. Telangana has received deficient rainfall at 52.8 mm in the northeast monsoon season so far, the data showed. The state receives 14% of its annual rainfall in the northeast monsoon season. Farmers have sown paddy over 76,043 acres so far, up from 11,746 acres a year ago. The season's normal area for the crop is 4.05 mln acres. The acreage under coarse grain rose 22% on year to 237,688 acres, while maize acreage rose to 2,02,691 acres from 1,64,870 acres and accounted for 85.3% of the area under coarse grains. The season's normal area for maize is 511,521 acres, as per the data. Sowing of foxtail millet or korra, and cotton is yet to start, the data showed. The season's normal area for cotton is 643 acres and that of foxtail millet is 305 acres.The area under food grains rose to 568,230 acres from 530,559 acres a year ago. Oilseed acreage was at 184,929 acres, down from 201,642 acres a year ago. The normal area for oilseeds in the season is 371,037 acres. The water level in major reservoirs in the state as of Wednesday was 429.29 bln cu ft, down from 769.51 bln cu ft during the corresponding period a year ago, according to government data.
* The area under rabi crops in Maharashtra has fallen nearly 17.4% on year to 3.72 mln ha in the current season as of Monday from 4.50 mln ha a year ago, according to data published by the state agriculture department. So far, 69% of the average rabi crop area of 5.4 mln ha in the state has been covered. Wheat, a key rabi crop, was sown across 470,549 ha, down from 671,489 ha a year ago. The area under jowar rose nearly 3.1% on year to 1.21 mln ha. The total area covered under cereals also fell 11% on year to 1.86 mln ha.The area under pulses was 1.81 mln ha, down from 2.37 mln ha a year ago. Among pulses, acreage of gram fell 23% on year to 1.75 mln ha, data showed. The total area under food grains was 3.68 mln ha, down from 4.46 mln ha from a year ago, the data showed. Oilseed acreage rose to 40,732 ha from 37,963 ha a year ago, according to the report. Safflower was sown across 30,593 ha, up from 23,117 ha a year ago. However, sunflower acreage fell to 1,028 ha from 2,753 ha last year.
* The National Commodity and Derivatives Exchange Ltd is set to launch trading in mini futures contracts of jeera from Tuesday, the exchange said in an official release. Initially, the jeera mini contracts will be launched for three months--January, March and April--the exchange said. Trading will be available in all three contracts from Tuesday. The jeera mini futures would be of 1 tn each, against the current 3 tn for normal futures contract of the spice, NCDEX said. NCDEX said that the maximum order size for the mini jeera futures would be 50 tn, while the quotation would be in rupees per 100 kg. In terms of quality specifications, the contracts will have to adhere to certain norms. For the mini contracts, jeera of Indian origin can have foreign matter of up to 1%, and seeds with stalks of up to 8%,the exchange said in the release. Foreign matter includes anything other than jeera seeds such as sand, silica, pebbles, and other edible and non-edible seeds. Damaged, discoloured, shrivelled and immature seeds matter can be up to 4.5%, while insect damaged matter should not be more than 0.5%, it said. The main delivery centre for the jeera mini futures would be Unjha in Gujarat, and the additional centre would be Jodhpur in Rajasthan, the exchange said. For all the contracts, delivery will be compulsory, NCDEX said. The expiry date of the contracts will be on the 20th of the delivery month, the exchange said. "If 20th date happens to be a holiday, a Saturday or a Sunday, then the due date shall be the immediately preceding trading day of the Exchange, which is other than a Saturday," it said. "Upon expiry of the contracts all the outstanding open positions shall result in compulsory delivery." The daily price limit for these mini futures contracts will be plus or minus 4%, and if the limit is breached, then after a period of 15 minutes, it will be increased by a further 2%, NCDEX said. Jeera is grown only during the rabi season, and Gujarat and Rajasthan together account for nearly 99% of the country's overall output.
* A lull phase after the departure of severe cyclone Michaung is likely to end with an increase in rainfall activity in south India from Saturday, the India Meteorological Department said in a release. As a cyclonic circulation lies over southwest Arabian Sea and the adjoining equatorial Indian Ocean, heavy rainfall is likely over some places in south Tamil Nadu on Sat-Sun and over Kerala on Sunday, the weather bureau said. A cyclonic circulation brings heavy rainfall to a particular region near which it is located. Light to moderate rainfall is also expected over parts of Tamil Nadu during the weekend, over Kerala and Mahe during Sat-Mon and over Lakshadweep on Sun-Mon, the bureau said. Since Oct 1 till Wednesday, Tamil Nadu has received 385.4 mm of rainfall, 4% lower than the normal of 403.4 mm for the period, while Kerala received 26% more than normal rainfall at 605.8 mm, the India Meteorological Department data showed. Overall, India received 7.8 mm of rainfall in the week ended Wednesday, 81% above the normal weighted average of 4.3 mm for the period, data from the weather bureau showed. As winter peaks in December, some pockets in Punjab and Haryana are going to experience dense fog on Friday, the bureau said. Minimum temperatures during the last 24 hours till 0830 IST today are in the range of 5-10 degree Celsius over most parts of Punjab, Haryana, Chandigarh, Delhi, north Rajasthan, and Uttar Pradesh, the weather bureau said. Moreover, as western disturbance is likely to affect the western Himalayan Region, Jammu, Kashmir, Ladakh, Gilgit, Baltistan, and Muzaffarabad may receive rainfall and snowfall on Sat-Sun, the agency said.
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