MMTC invites bids for importing pulses

News digest

State-owned trading firm MMTC Ltd has invited bids from global suppliers for import of 15,000 tonnes of pulses to meet the domestic shortfall. MMTC intends to import 5,000 tonne each of urad, tur and green moong by February 2007, a company official said today.

The company has stipulated that 3,000 tonne each of urad, tur and moong should be delivered at Mumbai. Besides, 1,000 tonne each have to be delivered at Kolkata and Chennai ports.

The last date for submission of bid has been fixed as December 19, according to the tender document which was notified in the company's website on December 8.

MMTC, a public sector undertaking under the Ministry of Commerece, has been authorised by government to import pulses after customs duty was brought down to zero as part of steps to rein in the rising prices of essential commodities.

The government had recently extended duty-free import of pulses by four months till August 2007 from April earlier.

Import of pulses was allowed in order to meet the gap created due to lower output and higher domestic demand.

Select edible oils remain down

There was no change in the pattern of trading on the wholesale oils and oilseeds market as select edible and non-edible oil prices declined further on increased selling by stockists amidst sluggish demand and registered further losses.

Marketmen said increased selling by stockists along with sluggish demand mainly dampened the trading sentiments. In the edible section, mustard expeller oil remained weak at Rs.4520 from previous closing of Rs.4580 a quintal on poor offtake by local parties.

Sesame mill delivery followed suit and down by Rs.50 at Rs.4650 a quintal on lack of buying support from vanaspati units.

In the non-edible sector, linseed, mahuwa and castor oils also eased to Rs.4575, Rs.4325 and Rs.4160 per quintal respectively on poor demand from consuming industries.

Sugar down on sluggish demand

Prices continued to decline on the wholesale sugar market today owing to considerable fall in demand from bulk consumers against increased supplies and closed with another losses.

Marketmen said reduced offtake by bulk consumers and stockists in the face of increased supplies mainly pulled prices further down. At wholesale market, sugar ready medium and second grade prices fell by Rs.30 each at Rs.1700-1800 and Rs.1690-1790 a quintal respectively.

March cotton down in US futures market

March cotton futures fell modestly, as bearish options trades and light commercial sales pressured prices, sources said. Most-active March lost 14 points to settle at 54.34 cents a pound, and May eased 12 points to 55.50 cents.

"The market's just trading around looking for news, and maybe we'll get it tomorrow with the export sales report," said Jeff Driver, cott on broker with Iamhedged.Com in Memphis. Traders and analysts are expecting the U.S. Agriculture Department to report anywhere from 100,000 to 150,000 running bales in Thursday's weekly export sales report.

Driver believes the U.S. May have sold cotton to China last week, which would show up on this week's data.

Wednesday's session was relatively quiet. Bullish traders pushed March cotton to a new 2 1/2-month high of 54.75, but bearish options trades knocked the market down to settle beneath the key 54.50-cents area.

Technically, traders and analysts continue to watch 54.50 to see if prices can push and close above that level. If prices can muster enough strength to break that barrier, then further gains are possible, an analyst said.

Total futures volume was estimated at 10,578 contracts, with 3,579 calls and 6,472 put options traded.