Agri Picks Report May 27, 2024: Geojit Financial Services

commodities

Geojit Financial Services's report on Daily Agri Picks

The International Grains Council has projected global grain production in the 2024-25 season at 2,312 mln tn, down 10 mln tn from its estimate last month. The projection was scaled down due to lower production of maize in Argentina and sub-Saharan Africa, and wheat in Russia, Ukraine, and the US, the council said in its monthly report on Thursday. However, the expected grain production in 2024-25 is 0.7% higher than the estimate of 2,297 mln tn for 2023-24, primarily due to an increase in the production of commodities such as wheat, soybean, and rice. The estimate for 2023-24 has been cut by 4 mln tn due to an expected drop in sorghum and barley output, it added. Consumption in 2024-25 is seen at 2,320 mln tn, down 1 mln tn from the last estimate, but 9 mln tn more than the previous year, the report said. The consumption estimate for 2024-25 is higher as demand for food, feed, and industrial consumption is "seen at new peaks", the council said. The estimate for closing stocks of grains has been cut by 12 mln tn to a 10-year low of 580 mln tn, owing to a fall in year-end wheat and maize stocks. The closing stocks are seen 1.4% lower than 588 mln tn in 2023-24, according to the report. Global trade of total grains is now seen at 416 mln tn, down 2 mln tn from the last estimate. Maize accounts for most of the cut in the forecast for global trade, IGC said. It projected global maize production in 2024-25 at 1,220 mln tn, down 6 mln tn from the estimate of 1,226 mln tn last month. The council has estimated maize production in 2023-24 at 1,224.8 mln tn, 200,000 tn less than the previous month's forecast of 1,225 mln tn. India's non-basmati rice exports in the year ended March plunged 28.1% to $4.57 bln, according to data collated by the Agricultural and Processed Food Products Export Development Authority from the Directorate General of Commercial Intelligence and Statistics. In volume terms, non-basmati rice exports declined 37.5% to to 11.11 mln tn in 2023-24, the data showed. India banned exports of non-basmati white rice in July on concerns about rising domestic prices. The government, however, allowed exports of white rice to meet the food security needs based on requests from foreign countries. Basmati rice exports in 2023-24 rose 21.9% on year to $5.84 bln. In terms of volume, basmati rice exports rose 14.9% to 5.24 mln tn in 2023-24, the data showed. In value terms, basmati accounted for over 23% of the total exports of agricultural products from India, while non-basmati rice accounted for over 18%. The total exports of farm products and processed foods fell 6.4% on year to $25.02 bln in 2023-24 from $26.72 bln a year earlier. Exports of buffalo meat rose 17.1% to $3.74 bln in 2023-24. Buffalo meat export is the third-highest revenue earner after basmati and nonbasmati rice. Exports of processed fruits and vegetables rose 13.8% to $2.04 bln in 2023-24. Pulses exports fell 2.7% on year to $644 mln in 2023-24, while groundnut exports rose 3.5% to $860.7 mln. Exports of guar gum fell 12.2% to $541.65 mln. India is the world's largest producer of guar gum.

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27052024 - co