Commodity

EDIBLE OIL PRODUCERS WORRIED OVER 5PC GST

Oilseeds will attract 5 percent tax under goods and services tax, unlike most other agricultural produce such as grains and pulses that have been exempted under the new regime that is set to be rolled out from July.

This has led to worry among edible oil manufacturers over locking up large funds as they will be able to only partially recover the tax they pay on inputs from the output, edible oil and de-oiled cake or DOC, a byproduct of edible oil manufacturing used as animal feed.

As per the indication given earlier, industry was expecting that oilseeds will be included under nil rate of tax like grains and pulses.

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COLOMBIAN COFFEE PRODUCTION UP 4.8PC

Colombia, the world’s leading producer of mild washed Arabica coffee, produced a total of 4.4 million 60-kg bags between January and April, a 4.8 percent increase compared to the 4.2 million bags produced between January and April 2016.

As a result of delayed flowerings, coffee production in April dropped 20 percent by reaching a total 834 thousand 60-kilogram bags. Harvest peaks are, however, expected to arrive starting mid-May. During the last 12 months (May 2016-April 2017), Colombian coffee production reached 14.4 million 60-kilogram bags, a 0.8 percent fall compared to the 14.5 million bags produced during the same previous period.

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GOLD, SILVER TRADE HIGHER

Precious metals gold and silver were trading higher in early trade on Thursday following weakness in the dollar after minutes of the US Federal Reserve’s last policy meeting downplayed the chance of more aggressive interest rate hikes.

MCX Gold was trading 0.11 percent or Rs 32 up at Rs 28,745 around 10.40 am (IST), while MCX Silver was up 0.27 percent or Rs 107 at Rs 39,939 per kg.

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URANIUM PRICES SET TO RISE IN 2017

Uranium prices have rebounded a little in recent months. With spot rates rising to a current $22.75/lb — after falling as low as $18 in late 2016. But a new plan from the world’s top producer could help get prices moving upward again. As this major plans to increase its presence in buying and selling uranium around the world.

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PETROLEUM PRICES IN PAKISTAN (Rs/Ltr)
Date	HOBC	Premium	HS Diesel	LS Diesel	Kerosene
3-Apr-17	72.68	74.0	84.0	44.0	44.0
1-Mar-17	72.68	73.0	83.0	44.0	44.0
1-Feb-17	72.68	70.29	79.48	43.35	43.25
16-Jan-17	72.68	68.04	77.22	43.35	43.25
2-Jan-17	72.68	66.27	75.22	43.35	43.25
1-Dec-16	72.68	66.27	75.22	43.35	43.25
1-Nov-16	72.68	64.27	72.52	43.35	43.25
1-Oct-16	72.68	64.27	72.52	43.35	43.25
1-Sep-16	72.68	64.27	72.52	43.35	43.25
1-Aug-16	72.68	64.27	72.52	43.35	43.25
1-Jul-16	72.68	64.27	72.52	43.35	43.25
1-Jun-16	72.62	64.27	75.86	40.2	45.23

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EU MILK PRODUCTION LIKELY TO GO UP IN 2017

Despite the fact that EU milk production for the first quarter of the year was 2 percent lower than the same period in 2016, the European Commission expects an overall increase of 0.6 percent this year compared to last year.

Some of the major EU milk producing countries have had lower collections so far this year but the same can be said in South America, Australia and New Zealand. Irish milk production for the year is forecast to be 5 percent ahead of 2016. EU exports of dairy products are good and the remunerative prices for butter bode well for the milk price.

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NIGERIAN OIL PRODUCTION TO STAND 2.2M BPD BY JUNE

The CEO of Nigerian oil company Oando says the worst of the west African country’s output disruptions are over as the twice-attacked Forcados pipeline returns to full capacity by the end of June. National production will touch 2.2 million barrels per day by June as well. The first cargo from the 400,000 bpd Forcados export line loaded on the 15th of May.

Separatists operating from the Niger Delta spent the better half of 2016 attacking oil facilities in the region to protest Lagos’ negligent attitude towards the residents of the land used to generate a majority of government revenues.

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WHEAT FUTURES KEEP CLIMBING

Chicago wheat futures rose for a second straight session on Thursday with short-covering by funds and concerns over excessive moisture in the US grain growing areas underpinning the market.

Corn gained more ground while soybeans rose after closing largely unchanged in the previous session. The Chicago Board of Trade most-active wheat contract rose 0.6 percent to $4.35 a bushel by 0332 GMT, having added 0.7 percent on Wednesday.

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POWER PLANTS IN CHINA, BURNING HALF THE WORLD’S COAL

With factories and power plants across China burning half the world’s coal, the government’s latest targets for using more natural gas to ease the country’s worsening air pollution seemed too ambitious.

Though gas remains a small and expensive component in China’s fuel mix, demand is rising faster than expected for domestic and imported supplies. In April, consumption was 22 percent higher than the same month in 2016, and the total for the first four months of the year is up more than 12 percent.

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RUSSIAN SOYBEAN OIL PRODUCTION SET RECORD

43.5 KMT of soybean oil was produced in Russia in March 2017 that is 4.5 percent more than in the previous month (41.6 KMT) and up 5 percent from March 2016 (41.4 KMT). As expected, the current 2016-17 season continue going the way of new highs. So, soybean oil production reached 370.4 KMT in September-March, up 1.7 percent year-over-year (364.1 KMT in the same period in 2015-16).

This product accounts for 9.4 percent of total vegoil output. Assessing the current season’s trends, UkrAgroConsult expects soybean oil producers to end the marketing year with a new production record of least 630 KMT.