Search This Blog

Wednesday, April 4, 2007

Korean Tender 20th Nov

KOREAN TENDER :-
20th NOV-2006

The Korean tender was declared today , please find the details as below :
2000 Mt @ $ 806 to Sudan
1000 Mt @ $ 827 to Pakistan
1000 Mt @ $ 821 to India
1000 Mt @ $ 829 to India
500 Mt @ $ 829 to India
500 Mt @ $ 833 to India
700 Mt @ $ 831 to India
Interesting facts to note is the price difference between India and Sudan's price, for the past 5-6 Tenders we always saw that Sudan was 4-5 $ above India but this time its the opposite way round so it seems that Sudan got rid of its old stock at low prices and since they did not bid a huge quantity seems like they don't have a big carry forward either.
Now it would be interesting to see if with their new crop Sudan decides to sell at lower price than India or do they
Increase their prices in line with Indian prices knowing well that India also does not have a big crop to offer discount prices.
Another point to note is the absence of Chinese Bid's , which clearly states that although they have a big crop its still not enough for exportsso there is always a chance of them buying little from Africa later.Pakistan is not all that competitive either.
Markets have not risen today after a panic increase we saw in the past 2 weeks,but they have not fallen either mostly due to strong domestic demand and should remain stable and firm in the coming weeks.
I think we are very near the bottom line now and with bad news of weak Mustard Crop , high prices of Groundnut and Soya bean already floating in the market i don't see the markets going down by a lot even with weaker
demand and soft international prices in months to come.

No comments: