Agri Picks Report November 10, 2023: Geojit

commodities

Geojit's report on Agri Picks

The National Commodity and Derivatives Exchange released specifications for the crude sunflower oil futures contracts on Wednesday. Futures contracts of crude sunflower oil will be available for trading on NCDEX from the Muhurat trading session on Sunday, the domestic bourse said in a release. Contracts expiring in the months of December, January, and February will be launched on the same day. The open interest threshold of the crude sunflower oil futures contract is 59,500 tn and the contract symbol is SUNOIL, said the release. The basis centre is Chennai and trades are settled in cash. "Upon expiry of the contract, the positions would be cash settled and there will be no physical delivery," according to the release. Contracts will be opened on the first trading day of the month and expiry is set on the last trading day of the same. The trading unit is 5 tn, and the maximum order size is 500 tn. Tick size is 10 paise, and the contracts will be quoted in rupees per 10 kg, the bourse said. "Once the price limit of 4% (+/-) is reached, then after a period of 15 minutes this limit shall be increased further by 2%," said the release. After the daily price limit is enhanced, trade will be permitted throughout the day within the enhanced total daily price limit of 6%, it added. Member-wise position limit is set at 210,000 tn or 15% of the market-wide open interest in the commodity, whichever is higher. For clients, it is set at 21,000 tn. The Food and Agriculture Organization of the United Nations expects sowing of wheat in India to be higher in 2024 than in 2023, driven by high local prices and increase in the government's minimum support price. "Adequate water availability for irrigation is also supporting favourable yield prospects," FAO said in its 'Crop Prospects and Food Situation' report for November. The government, on Oct 18, increased the minimum support price for wheat by 150 rupees per 100 kg, or 7%, to 2,275 rupees per 100 kg. The UN agency has projected India's wheat production in 2023 at 363.8 mln tn, 1% higher than in 2022. Under its world cereal stocks data, FAO has pegged India's cereals stock in 2024 at 70.4 mln tn, up 6.2 mln tn from the previous year. Wheat shipments in 2023-24 are seen below average due to restrictions on exports imposed by the government since May 2022, the report said. Currently, winter wheat planting is underway across the northern hemisphere but growth in acreage is expected to be limited because of softer crop prices this year. The global food agency has raised the 2024 wheat crop forecast as preliminary data points to an increase in planting in mainland China, India and Pakistan, which are the main producing countries in Asia. In 2023, global wheat output is projected at 785.1 mln tn, down 2.2% from 803.1 mln tn last year because of downward revision in production in Europe and Kazakhstan, where prolonged periods of unfavourable weather late in the season led to lower yields relative to earlier prospects, it said. Global ending stocks of wheat in 2023-24 are pegged at 198.9 mln tn and global exports are seen at 52.8 mln tn, as per the latest FAO Cereal Supply and Demand Brief report.

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