Indian Agri Market Snapshot:
Last week remained volatile on the pricing as well as news outcomes front, meanwhile the week was short on trading front. During the week, Indian Agriculture Minister said many states and territories expressed their willingness to join NAM (National Agriculture Market). However, 21 mandis from 8 states have been selected for the pilot launch of NAM e-market platform. The following are the list of commodities to be traded in NAM – Wheat, Maize, Chana, Castor Seed, Jowar, Bajra, Barley, Groundnut, Soybean, Mustard Seed, Red Chilli, Cumin Seed, Cotton, Potato, Onion, Apple, Turmeric, Shelling Peas and Mahua Flower.
On Exports front during the week, good demand of Indian spices seen in overseas market, wherein enquiries in Cumin, Coriander, turmeric and chilli has increased as compare to previous month. Major traders were expecting prices to remain in pressure on back of arrival of new crop. While, according to Spice Board of India, exports remained 10% higher in comparison to 2015 same period last year.
TOP NEWS
- The United States department of agriculture (USDA) maintained 2015-16 United States soybean production forecast for April while trimmed its forecast for ending stockpiles, the department said in its World Agriculture Supply and Demand Estimates report Wednesday.
- USDA trims US cotton production – The United States department of agriculture (USDA) trimmed US and world production estimates for 2015-16, the USDA said in its World’s Agriculture Supply and Demand Estimates (WASDE). USDA slashed 2015-16 output estimates at 12.87 million bales, lower as compared 12.94 million bales previous forecast.
Cumin Seed
Prices of Cumin seed remain volatile during the week on back of arrival news in local markets and lower than expected exports demand. Prices of Cumin seed corrected during the week on profit booking from the higher levels while on dollar terms prices of cumin seed corrected nearly $50 from $2450 to the levels of $2400 FOB levels.
Prices dropped sharply in the first two days of the week started while during the last few days seen some recovery, while according to traders chances of prices to trade lower is less as good demand in domestic and international market to come in the upcoming weeks would support the lower prices.
Physical market arrivals during week were totaled to 45,000 bags in Unjha. According to physical market people downside would be limited due to lower crop of nearly 45 lakh bags (40 kg bag) this season.
Soybean
Prices of soybran remained muted during the first two days of the week while huge spike seen on Wednesday after USDA (United States Department of Agriculture) trimmed US soybean ending stockpiles estimation and also maintained output forecast and strong demand from China (World’s biggest soybean consumer). USDA trimmed its forecast for 2015-16 ending stockpiles to 445 million bushels in April compared to 460 million bushels in the previous month and 191 million bushels a year ago.
Soybean prices in International market hits fresh 8 month high in US on back of better than expected demand from importing country China, and outcome of stockpile report from USDA. Price of Soybean May Futures contract, in International market touched $9.49 ¼ a bushel in early trades.
China Import data suggest that country has imported nearly 6.1 million tons of soybeans last month – up 36% on yearly basis and record for March. China’s import rose strongly in March, demand from both feed and vegetable oil markets has increased the imports.
Cotton
Cotton prices rose to 18 month high during the week after USDA reports falling outputs for 2015-16 and raised Indian export estimates. According to the traders, Cotton prices been supported by strong demand and lower supplies are supporting the cotton prices domestically and internationally. CAI (Cotton Association of India) has further revised its production estimates downwardly to 34.5 million bales in its latest forecast, which were 35.3 million bales earlier. Latest, arrival reports show cotton arrivals across India have fallen below to 100,000 levels and its expected to fall further as per seasonality of the commodity.
According to the data released by IBIS and compiled by Agriwatch, Bangladesh imported 0.40 lakh bales of cotton from India in the past week (04 -10 Apr 2016). Other major importers were Pakistan, Vietnam, China and Indonesia and their imported volumes were 0.07 lakh bales, 0.10 lakh bales, 0.08 lakh bales and 0.07 lakh bales respectively.
SUGARM
Sugar Prices again started to elevate higher after profit booking seen last week. Prices traded higher on robust demand from bulk consumers and lower output estimates for 2015-16. Indian 2015-16 sugar production until Mar 
31 slumped 4% to 23.7 million tons on lower output from Maharashtra, India Sugar Mills Association (ISMA) said in press release. Indian sugar production up-till Mar 31 stood at 23.7 million tons as compared to 24.8 million tons same periods last year.
Some field reports suggest that due to less rainfall and lower water availability in reservoirs in some Districts in Maharashtra and North Karnataka, the acreage of sugarcane available for harvesting in 2016-17 sugar season will be lower. Therefore, there is a general expectation that sugar production during 2016-17 sugar season from the States of Maharashtra and Karnataka, due to lower acreage in some of their districts, will be lower than the current sugar season. Indian sugar production stood at 23.7 million tons as compared to 24.8 million tons same periods last year.
