WHEAT: Cold weather makes for record harvest for seventh year straight

Published: January 8, 2013

Indian farm labourers use shovels to separate grains of wheat from the husk at a grain market on the outskirts of Amritsar in 2010. Photo: Narinder NanuAFP/Getty Images

Prabhudatta Mishra
BLOOMBERG NEWS

Wheat output in India, the world’s second-biggest producer, may reach a record for a seventh year as cold weather boosts yield prospects and record domestic prices spur planting, potentially boosting exports.

Better soil moisture and below-average temperatures in the main growing states of Punjab and Haryana in the past three weeks have been beneficial for the crop, said Indu Sharma, director at the state-owned Directorate of Wheat Research.

The harvest starting from April may climb from an all-time high of 93.9 million metric tons in 2011-2012, she said.

A bigger harvest may force the government to pare stockpiles through exports and vacate warehouses for the new crop, pressuring futures in Chicago which fell to a six-month low last week.

Rising supplies from India may help partly make up for the potential crop losses from the U.S. to Argentina and Australia to dry weather and cap global food costs tracked by the United Nations’ Food & Agriculture Organization.

“With elections scheduled for next year, the government will like to buy more of the new crop,” said Faiyaz Hudani, a senior analyst at Mumbai-based Kotak Commodity Services Ltd.

“It will have to liquidate the old crop to create space. When the purchase is going to be high, the government’s only option is to export.”

India may find it easier to export after drought reduced wheat output in Australia and Argentina, while Russia and China were set for smaller crops, Hudani said.

The country may ship more than 5 million tons in the year from April, he said. Exports have surged to 5.2 million tons, including 1.23 million tons from state stockpiles, since a ban on sales was scrapped in September 2011, according to data from India’s food ministry.

DECLINING INVENTORIES

Global production may drop 5.9 per cent to 655.11 million tons in the year ending May 31, according to the U.S. Department of Agriculture.

Inventories are declining for a third year and seen at the lowest level relative to consumption since 2008, when wheat prices surged to a record $13.495 a bushel. Futures advanced 19 per cent to $7.78 in 2012 on the Chicago Board of Trade, having risen as high as $9.4725 in July.

Prices in India jumped 29 percent last year after exports rose and the government increased the minimum price paid to farmers to a record.

Farmers planted wheat in 28.6 million hectares (70.7 million acres) as of Jan. 4 compared with 28.2 million hectares a year earlier, according to the farm ministry. Weather is set to remain favorable for crop development in the coming weeks, said L.S. Rathore, director general of the India Meteorological Department.

CROP CONDITION

“The wheat crop is likely to be good this year,” Rathore said in an interview. “There is no signal of abnormal weather prevailing until March. If the area goes up, the output will increase.”

The crop is in good conditions in the main producing states of Punjab, Haryana and western parts of Uttar Pradesh, according to the wheat directorate’s Sharma. The climate during the grain formation stage from the second half of February will be key to boosting yields, she said.

State inventories of wheat totalled 34.4 million tons as of Jan. 1, more than the minimum 11.2 million tons required to be held for emergencies and strategic reserves, according to the Food Corp. of India. The government bought 38.1 million tons of wheat from farmers in 2012-2013.


Tags: , , , ,





Featured

COLD_MURDER_SENTENCE_20130410_210705138

Vancouver murder victim’s family relieved as judges reject killer’s appeal of conviction (w/ video)

KEITH FRASER VANCOUVER DESI The family and friends of murdered Vancouver teen Poonam Randhawa breathed a collective sigh of relief as the girl’s killer lost…
Continue Reading »

India weird news

Air India passenger finds half-eaten worm mixed in his breakfast on flight to Delhi

VANCOUVER DESI An Air India passenger in upper economy class was horrified when he noticed a half-eaten worm mixed in with his breakfast plate on…
Continue Reading »

New Westminster BC crime

Police investigate suspicious deaths in Surrey and New Westminster

JENNIFER SALTMAN VANCOUVER DESI Foul play is suspected in the death of a man in New Westminster. The Integrated Homicide Investigation Team was called in…
Continue Reading »

LOCAL NEWS

COLD_MURDER_SENTENCE_20130410_210705138

Vancouver murder victim’s family relieved as judges reject killer’s appeal of conviction (w/ video)

KEITH FRASER VANCOUVER DESI The family and friends of murdered Vancouver teen Poonam Randhawa breathed a collective sigh of relief as the girl’s killer lost…
Continue Reading »

New Westminster BC crime

Police investigate suspicious deaths in Surrey and New Westminster

JENNIFER SALTMAN VANCOUVER DESI Foul play is suspected in the death of a man in New Westminster. The Integrated Homicide Investigation Team was called in…
Continue Reading »

deportation-Canada

Blatchford: Pakistani woman deserves a better life in this big, empty country

CHRISTIE BLATCHFORD POSTMEDIA NEWS When I saw the picture of a weeping Jamila Bibi in the Saskatoon StarPhoenix on Tuesday, I thought of only one…
Continue Reading »

Don't Miss...

swimming

Bull makes a splash, interrupts state level swimming competition in India

VANCOUVER DESI An unlikely contestant — a bull, interrupted a state level competition in India by jumping into the pool to swim with participants, according…
Continue Reading »

Scroll Invitation

Wedding invitations – the Do’s

KIM TREHAN VANCOUVER DESI You are cordially invited…. We request the honor of your presence… Please join us… It is so difficult to decide on…
Continue Reading »

COLD_MURDER_SENTENCE_20130410_210705138

Man jailed for murder of Vancouver girlfriend wants to withdraw his guilty plea (with video)

KEITH FRASER VANCOUVER DESI A man who spent 12 years on the lam before being convicted in the fatal shooting of his teenage girlfriend wants…
Continue Reading »

calf

Villagers worship ‘miracle’ calf in India born with third eye (w/ video)

VANCOUVER DESI People are flocking to a small village in southern India to worship a “miracle” calf believed to be an incarnation of a Hindu…
Continue Reading »

INDIA_ACID_ATTACKS_PHOTO_GALLERY_217739018

Acid-attacked teen, Laxmi, chosen to model for New Delhi’s India Runway Week

IANS New Delhi  – One of India’s young acid attack victims has been chosen to walk the runway at the third edition of India Runway…
Continue Reading »


Bollywood Latest

Desi Sex

Gallery: Bollywood’s on-screen sex queens

VANCOUVER DESI When it comes to lighting fire on the silver screen, our Bollywood actresses don’t shy away from lovemaking scenes. But some are more…
Continue Reading »

Big Bang Kunal Nayyar

‘Big Bang’ star loved playing brash taxi driver in Canadian film ‘Dr. Cabbie’

SADIYA ANSARI THE CANADIAN PRESS TORONTO — Kunal Nayyar, one of TV’s favourite supernerds in “The Big Bang Theory,” jumped at the chance to play…
Continue Reading »

Hrithik Roshan Katrina Kaif

Hrithik Roshan on doing Michael Jackson’s iconic moves in Bang Bang: I added my own style

IANS Mumbai – For the title track of the forthcoming film “Bang Bang”, Hrithik Roshan has grooved a la his dance idol, the late King…
Continue Reading »