El Niño News

Rice prices in Asia edged lower after rallying to the highest level in almost 15 years last week as major buyers seek to build domestic stockpiles amid persistent concerns over global supplies. Thai white rice 5% broken — an Asian benchmark — slipped to $612 a ton on Wednesday, according to data from the Thai Rice Exporters Association. Prices are still up 20% this year after surging to the highest since 2008 last week.

Andrew Holland, CEO, Avendus Capital, says “I do not think we are out of the woods yet. I would not be surprised if the Nifty was to go downward to around 19,000, it would be a good point to relook again. But at the moment, even though we remain in this small trading range, the risks are more to the downside, particularly because of the banking index.”Many are questioning whether the market is getting overheated or not. Some of the froth has definitely come off from the top. But do you think there is still a meaningful correction in store or this is just a temporary blip that one has seen and maybe the worst of it got over last week? I am not sure that the worst of it is over yet but it is a temporary blip in terms of the market fall.

NEW DELHI : ITC Ltd on Monday outperformed Street expectations with a 17.5% rise in standalone net profit for June quarter, helped by lower exp-enses. However, an ongoing ban on wheat export and a more recent ban on rice export hurt standalone revenue for the quarter that fell 7.2% to ₹16,995.49 crore from ₹18,320.16 crore a year ago. The company, known for its Gold Flake cigarettes and Bingo chips, posted net profit of ₹4,902.74 crore for the quarter ended 30 June, up from ₹4,169.38 crore a year ago.

El Nino's dry weather threatens to further dent coffee production in Indonesia, the world's fourth largest grower, after excessive rains dragged down output to its lowest in more than a decade, driving global prices to all-time highs. Lower coffee output in Indonesia, which mainly produces robusta beans — having a bolder and more bitter flavour than the arabica variety — could trigger more gains in prices which have climbed more than 40% in 2023 and hit a record high in June.

ITC has been welcomed by the investors and the direction for the company will probably continue to remain positive, says Mahantesh Sabarad, Market Expert. Edited excerpts.We have seen a bit of a comeback in terms of inflation. Whether it is tomatoes, wheat prices, rice prices and of course sugar prices are also expected to inch higher. Does all of this put a bit of a question mark in terms of where inflation is headed. And do you think that is the nervousness that the market is dealing with right now? I think you are probably right.

global warming, could extend beyond mere weather fluctuations. The warming trend resulting from El Nino could have significant health implications. Vector-borne diseases, like malaria and dengue, have been observed to spread as temperatures rise.

manufacturing output owing to pressures from the global slowdown and lower domestic demand pushed industrial growth to a three-month low of 3.7% in June compared with 5.3% in May, belying hopes of a broad-based recovery, according to experts. “The sequential slowdown was led by the manufacturing sector, while the mining and electricity sectors witnessed an improvement in their growth performance amid deficient rainfall in the month,” said Aditi Nayar, chief economist, Icra.

Mint poll of 19 economists. The poll predicts consumer price inflation (CPI) in the range of 5.5-7.5%, with all but two economists expecting inflation to exceed the Reserve Bank of India’s upper tolerance limit of 6%. Official data is scheduled to be released on 14 August.

Reserve Bank of India (RBI) left its key policy rates unchanged for a third straight meeting but signalled tighter policy if food prices drive inflation higher. The monetary policy committee (MPC), which has three members from the central bank and a similar number of external members, held the benchmark repurchase rate (repo) at 6.50 per cent in a unanimous decision.

inflation projection for the current fiscal by the Reserve Bank of India (RBI) on Thursday, while highlighting the global economic conditions, has dashed Dalal Street investors’ hope of a rate cut any time in the near future. Until the last policy meet, expectations were building for a longer pause and possibly, a rate cut later in FY24.

RBI MPC Meeting: Growth resilient but inflation remains a risk; key takeaways from RBI policy decision RBI is concerned due to uneven monsoon in some parts of the country which has contributed to an increase in vegetable prices. The central bank expects that headline inflation will increase in the next couple of months. That is why the RBI raised the CPI (consumer price index) inflation, also known as retail inflation, targets to 5.4 per cent for FY24 versus an earlier projection of 5.1 per cent.

Insurers are the unlikely stars of this profit season, prized by investors for their ability to push higher premiums on to policyholders, after years in the equity market wilderness.

inflation as it believes that soaring vegetable prices, likely transient, could ease soon after monsoon rains subside. It raised the inflation forecast for the financial year to 5.4 percent, from 5.1 percent earlier, as vegetable prices could keep the headline numbers high even though core inflation may be reasonable.

The Reserve Bank of India has raised inflation aim to 5.4% from 5.1% forecast in June policy. The central bank today also held the benchmark rate steady for a third straight time at 6.5% and also retained stance by five-to-one vote to focus on withdrawal of accommodation. El Nino weather conditions and global food prices need to be watched closely and these developments warrant a heighetned vigil, RBI Governor and MPC Chair Shaktikanta Das said while announcing the policy decisions.

rice prices to the highest level in almost 15 years is renewing fears that food costs are going to get a lot more expensive for the world’s poorest people. The grain is vital to the diets of billions in Asia and Africa. Rice contributes as much as 60% of total calorie intake for people in parts of Southeast Asia and Africa, and that rises to 70% in countries like Bangladesh.

Rice prices soared to the highest levels in almost 15 years in Asia on mounting concerns over global supplies as dry weather threatens production in Thailand and after top shipper India banned some exports, media reports said. Thai white rice 5 per cent broken, an Asian benchmark, jumped to $648 a tonne, the most expensive since October 2008, according to data from the Thai Rice Exporters Association, Bloomberg reported.

-Isolated heavy rainfall activity very likely over West Bengal & Sikkim on 7 and 8 August, Bihar and Jharkhand during 7-9 August. -Isolated very heavy rainfall is also likely over Bihar on 7 and 8 August.

CPI rose to a three-month high in June. And, going by the sharp run-up in vegetable prices since it is likely to cross the 6% danger mark in July. Meanwhile, WPI contracted to an eight-year low.

Agricultural economist and member of NITI Aayog Ramesh Chand says that as long as India exports 20-22 million metric tonnes (MMT) of rice a year, there will be no impact on domestic food security. In an interview with Shantanu Nandan Sharma, he says India had to ban non-basmati white rice as the global demand had skyrocketed, with policymakers estimating that India may end up exporting over 30 million tonnes if no restriction was imposed. Edited excerpts:Why did the government ban the export of non-basmati white rice?After the outbreak of the Russia-Ukraine war last year, food prices started rising.

GST tax and income tax revenue growth was strong, but corporate tax growth was weak," the report said. "We believe this is reflective of a k-shaped recovery - stronger demand for luxury goods where prices and tax rates are higher driving GST, and improved formal sector prospects driving income tax," it added India's Q1FY24 GDP growth is expected to clock 7.9%, according to the Reserve Bank of India (RBI).

Shaktikanta Das, the six-member Monetary Policy Committee (MPC) will meet for three days (8-10 August) and the decision would be announced on 10 August at 10 am by the Governor. The central bank has kept the repo rate unchanged at 6.5% since February this year. RBI Governor Shaktikanta Das will announce the MPC's decision on Thursday, August 10 at 10 am while the policy press conference will be telecast at 12 noon.