SANDIP DAS
Posted: Thursday, Jul 26, 2012
Financial Express
The drought-like condition prevailing in the United States and Australia, the world’s top grain exporters, have started to push up the price of soybean, corn, wheat and crude palm oil in the global commodities market.
Referred as the ‘worst drought in 25 years’, as much as 61 per cent of the United States’ agricultural land is facing deficient rains which has adversely impacted 78 per cent of the corn crop and 77 per cent of the soybean crop.
With the US exporting more than half of all world corn shipments and also the top exporter of wheat and soy, prices are on a boil. The Chicago Board of Trade (CBOT) August soybeans last week rose 0.5 per cent to $16.91 a bushel (1 bushel = 27.21 kg), just below the record it had reached earlier at $16.92-1/2 a bushel.
The futures price of wheat at CBOT rose by 0.3 per cent to $9.05 a bushel. It had risen to $9.08 a bushel last week, its highest level since 2008, before sliding back at the close. September wheat futures on Wednesday was reported at $8.69-3/4 a bushel.
However, the futures prices of corn declined marginally to $7.72 a bushel, while actively traded November soy lost 1.5 per cent to $15.46 a bushel.
Meanwhile, India, the second biggest producer of rice, wheat and sugar, will review its export rules shortly as monsoon rains have been deficient by 22 per cent till Wednesday.
Agriculture minister Sharad Pawar earlier this week said, “With the monsoon playing hide and seek, it is a challenge for our farmers and scientists to maintain the food-grain output achieved in the last two years.” Pawar said the country won’t ban exports of rice and wheat as food grains stocks with the government are in excess of 80 million tonne, which is far above the strategic reserve and buffer stocks norms.
India is closely watching the palm oil price as Malaysian crude palm oil futures rebounded from a 3-week low last week, as US drought is expected to hit global oilseed supplies. India is the biggest consumer of palm oil, accounting for around 17 per cent of total world consumption.
Monsoon worries have started to push up agri-commodities prices, which have already shot up 19 per cent on the commexes since the beginning of July.
Posted: Thursday, Jul 26, 2012
Financial Express
The drought-like condition prevailing in the United States and Australia, the world’s top grain exporters, have started to push up the price of soybean, corn, wheat and crude palm oil in the global commodities market.
Referred as the ‘worst drought in 25 years’, as much as 61 per cent of the United States’ agricultural land is facing deficient rains which has adversely impacted 78 per cent of the corn crop and 77 per cent of the soybean crop.
With the US exporting more than half of all world corn shipments and also the top exporter of wheat and soy, prices are on a boil. The Chicago Board of Trade (CBOT) August soybeans last week rose 0.5 per cent to $16.91 a bushel (1 bushel = 27.21 kg), just below the record it had reached earlier at $16.92-1/2 a bushel.
The futures price of wheat at CBOT rose by 0.3 per cent to $9.05 a bushel. It had risen to $9.08 a bushel last week, its highest level since 2008, before sliding back at the close. September wheat futures on Wednesday was reported at $8.69-3/4 a bushel.
However, the futures prices of corn declined marginally to $7.72 a bushel, while actively traded November soy lost 1.5 per cent to $15.46 a bushel.
Meanwhile, India, the second biggest producer of rice, wheat and sugar, will review its export rules shortly as monsoon rains have been deficient by 22 per cent till Wednesday.
Agriculture minister Sharad Pawar earlier this week said, “With the monsoon playing hide and seek, it is a challenge for our farmers and scientists to maintain the food-grain output achieved in the last two years.” Pawar said the country won’t ban exports of rice and wheat as food grains stocks with the government are in excess of 80 million tonne, which is far above the strategic reserve and buffer stocks norms.
India is closely watching the palm oil price as Malaysian crude palm oil futures rebounded from a 3-week low last week, as US drought is expected to hit global oilseed supplies. India is the biggest consumer of palm oil, accounting for around 17 per cent of total world consumption.
Monsoon worries have started to push up agri-commodities prices, which have already shot up 19 per cent on the commexes since the beginning of July.
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