European wheat prices mostly lower

Western European wheat prices were mostly flat to lower on Monday as export-boosting weakness in the euro partly offset broad losses in commodities linked to a controversial bailout plan for euro-zone member Cyprus. Worries over the consequences of a proposed bailout for Cyprus, which would tax bank deposits, sent the euro sliding to a lowest level in more than three months against the dollar, and also led to selling in equities and most commodities. 

May milling wheat on the Paris futures market edged up 0.25 euros or 0.11 percent at 234.75 euros a tonne by 1228 GMT in thin trading. It was still close to a one-week high of 235.00 euros seen on Friday. US wheat fell about 1 percent to add to a slight drop on Friday, with the stronger dollar encouraging more selling after a two-week high last week.

"We're adjusting to movements in Chicago and the euro since Friday's close," a French dealer said. The Paris benchmark contract remained in a consolidation range between 230 and 236 euros, with operators already looking ahead to end-of-month US government stock and planting estimates for firmer fundamental direction, dealers said.

The weakness in the euro was underpinning export prospects as importing countries Jordan and Tunisia launched tenders. European Union wheat export licences have remained brisk this month despite competition from cheaper US wheat, with last week's volume well above the average pace this season. German wheat was again quoted over Paris, underpinned by expectations of low supplies before the large new 2013 crop arrives, with the weaker euro also seen as helpful for EU exports.

Standard milling wheat for March delivery on Hamburg was offered for sale down 1 euro at 249 euros a tonne with buyers at around 247 euros. "The weaker euro seen today because of the Cyprus rescue will be a help for EU exporters and will help erode US competitiveness in the latest tenders announced today from Jordan and Tunisia," one German trader said. Snow cover was helping protect grains from a cold snap in Germany.

"There is a bit of concern about high winds blowing snow cover off fields but, I think plants in the north and east generally have good snow cover," another trader said. Continued demand and tight supplies kept feed wheat prices close or above milling wheat in parts of Germany. 

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Palm oil moves up

Malaysian palm oil futures rose to a one-week high on Thursday, drawing support from expectations of a bullish industry report and a lower palm oil inventory level, although gains were curbed by investor caution. Traders are looking ahead to Friday's US Department of Agriculture (USDA) report, which is expected to trim its outlook for soybean supplies, according to a Reuters poll.

The Malaysian Palm Oil Board's report on the country's February inventory level due on Monday may also sway the market, with a Reuters survey of five plantation companies showing stocks may drop to a 6-month low on seasonal slowing output. But investor caution remained after leading analysts presented differing price forecasts for the year at the biggest annual meeting on the edible oil, which ended on Wednesday.

"The palm market is still undecided on which direction to go yet. Now we're all looking at the soy side and the USDA data tomorrow," said a Singapore-based trader with a global commodities house. The benchmark May contract on the Bursa Malaysia Derivatives Exchange closed up 1.5 percent at 2,435 ringgit ($785) per tonne, slightly below its intraday high at 2,442 ringgit, a level unseen since February 27.

Total traded volume stood at 28,800 lots of 25 tonnes each, slightly higher than the usual 25,000 lots. Price forecasts from six speakers at the Bursa Malaysia palm oil conference in the Malaysian capital ranged from 1,800 to 3,200 ringgit, with the main focus on top analysts James Fry and Dorab Mistry.

Mistry was neutral on near-term prices, saying prices should range between 2,300 and 2,500 ringgit until the end of April but might fall after that, while a more bullish Fry expected prices to climb to 2,625 ringgit by mid-year on biodiesel demand. In competing vegetable oil markets, US soyoil for May delivery gained 0.1 percent in late Asian trade. The most-active September soybean oil contract on the Dalian Commodity Exchange was down 1 percent.
Source of Article: http://www.brecorder.com/

Exploitation of Sugarcane growers

Over the past few weeks, sugarcane growers in Sindh have become desperate. In the past, the sugarcane crushing season began in November but unfortunately, in recent years, mill owners of 36 sugar mills in the province — a major ratio of these owners in the corridors of power — are using delaying tactics, exploiting the inflation and disaster-hit growers and also trying to ravage the agricultural economy of the province with their devilish design to invest less and earn exorbitant profits.

The sugarcane commissioner and other relevant authorities seem to be in a deep slumber and there is no one to take notice of this anti-economic behaviour of the sugar mill owners. It is high time that the provincial government took some concrete steps to protect sugarcane growers. Is there anyone in power who could come forward and protect the growers from the exploitation of the mill-owners?

I am confident that if the growers and workers are protected from exploitation at the hands of mill owners, given enhanced rates and ensured timely payments, it would have a positive impact on the agriculture sector of Sindh. If this does not happen, Sindh’s rural economy will undergo massive damage because the growers will not have the resources to purchase agricultural inputs, which will in turn lead to food insecurity and inflation.

Hashim Abro

Published in The Express Tribune, November 7^th, 2012.

FAP for Rs 1400 per 40kg wheat support price

November 16, 2012


Farmers Associates Pakistan (FAP) has recommended the government to fix the wheat support price around Rs 1,400 per 40 kilograms for the next crop, warning that in other case farmers may go for other crops which fetch more profit. This was disclosed at FAP's 121st meeting held here the other day chaired by Afaq Ahmad Tiwana (CEO) along with President Dr Tariq Bucha.

The meeting basically discussed the emerging importance of Biotech crops to resolve future requirements of food and feeds and solid solution pertaining to land and water needs thereby the introduction of drought and salinity resistant crops. During other discussions, FAP members were informed that FAP has taken up wheat support price issue with the government and recommended that it should be around Rs 1,400 per maund for the next crop otherwise many farmers will not sow wheat as they would rather go for other crops, which fetch more profit like Canola, etc.

The House was also given the costing of wheat by the FAP leadership claiming that the international wheat price US 290 Dollars per ton. The price FOB Karachi, the meeting stated would be Rs 27,840 per ton. After including import expenses plus withholding tax this rate would come to Rs 30,624 per ton or Rs 30.624 per kilogram. Thus landed cost of the 40 kilograms wheat would come to Rs 1,224 (Ex-Karachi) and after adding transportation charges (at the rate of Rs 5 per kilograms) it would come to Rs 1,425 per 40 kilograms for the consumers.

The House also raised question regarding MFN Status to India where both insensitive and negative list there is no mention of any agricultural products. The House demanded to take up with government to make a special MFN regarding agriculture sector as heavy subsidies are given to agriculture products in India whereas no subsidies are practically available for farmers in Pakistan.

The farmers unanimously voiced their concern and offered full support to FAP management under whose leadership all the farmers are ready and if needed they will initiate a march to Islamabad in December 2012 and if not listened to by the government, then, maybe, they physically stop the agricultural products from India till the resolution of this matter. Discussing the prevailing rice prices in the market, the meeting was informed that at the moment Basmati is selling at Rs 1,800 and if farmers are ready to hold till December, it might touch Rs 2,000.

The meeting observed that the situation is more or less satisfied. The House is very vocal about local support price announced by the government regarding to sugar cane crop. The member said that at present the production cost is Rs 195 and the price should have been fixed around Rs 220 to make a reasonable profit. The members also agitated the cold attitude both in Punjab and Sindh where the farmers are not paying on time and refusing to buy on declared support price.

The meeting further observed that according to a recent report as against the set target of 14 million bales in view of rain it was now reassessed to be around 12.5 million bales. The House was informed that FAP has asked the government to intervene and stop import of cotton from Brazil and India, which is hurting the farmer as price of cotton is much lower than the cost incurred.