Vietnamese coffee prices fall on growing global stocks

 Coffee prices in Vietnam have dropped nearly 3 percent in the last week, freezing trade in the world's top robusta exporter as global stocks grow after a steady harvest in Brazil, traders said on Tuesday. "The (export) market is deadly quiet now," a trader in Ho Chi Minh City said, with robusta beans falling to 42,100-42,400 dong ($2.02-$2.03) per kg on Tuesday in the country's key growing province of Daklak, down nearly 3 percent from 43,300-43,700 dong a week ago.

December arabicas on ICE lost 1.35 percent to close at $1.6705 a lb on Monday, their weakest level since June 28, following a rise in certified stocks and as steady harvesting in top producer Brazil weighed on prices. November robusta coffee futures also lost $26, or 1.2 percent, to end at $2,142 a tonne. The trader in Ho Chi Minh said buyers were aiming for robusta discounts of $30 a tonne to London's November contract, while exporters wanted premiums of $25 to $30 a tonne. During the first half of August 2011, Vietnamese robusta stood at premiums of $90 to $140 a tonne to London's second-month contract.

Based on bid and ask prices, Vietnamese robusta grade 2, 5 percent black and broken could be in a long range of between $2,112 to $2,172 a tonne on a free-on-board Saigon Port basis, from $2,155 a week ago. Vietnam, the world's No 2 coffee producer, has shipped a record volume of coffee so far in this 2011/2012 crop year, which lasts from October to September. That in combination with the steady arrival of beans from Brazil means ample supplies in global coffee markets. 

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Tokyo rubber jumps

Tokyo rubber futures jumped 6 percent to a one-week high on Friday on the back of measures to curb exports by the top three rubber producers and on the prospect of stronger efforts to tackle Europe's debt crisis, dealers said But weaker oil prices and profit-taking after a recent run up limited the gains, they said.

The benchmark rubber contract on the Tokyo Commodity Exchange for January delivery rose 9.0 yen to settle at 221.0 yen ($2.79) per kg. It jumped as high as 12.8 yen, or 6 percent, to an intra-day high of 224.8 yen per kg, the highest since Aug 8. The most-active rubber contract on the Shanghai futures exchange for January delivery fell 355 yuan to finish at 21,760 yuan ($3,400) per tonne.

The front-month rubber contract on Singapore's SICOM exchange for September delivery was last traded at 251.0 US cents per kg, down 2.1 cents. "It's a combination of Merkel's speech and an attempt to cut exports by major producers that helped support prices. But, the gains were still limited as players took profit," said a Bangkok-based trader. 

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Ukraine to export up to 1.2 million tonnes of grain

Ukraine's grain exports will not exceed 1.2 million tonnes in August, the same volume as in July, Agriculture Minister Mykola Prysyazhnyuk said on Wednesday. "It will be great if exports reach 1.2 million tonnes this month," Prysyazhnyuk said. Analyst UkrAgroConsult said this week Ukraine had exported 389,000 tonnes of grain, mostly wheat, in August 1-13. Prysyazhnyuk said high local prices prevented traders from making large purchases of Ukrainian grains.

Local grain union UAC this week forecast that August exports could total 1.5 million tonnes. Wheat and barley traditionally dominate Ukrainian grain exports in the first months in the marketing year. Ukrainian milling wheat with 12.5 percent protein content cost $244-$251 per tonne ex-farm as of August 10, up from $210-$220 per tonne as of June 15.

Export prices for Ukrainian 11.5 percent protein milling wheat rose to $300-$305 FOB as of August 10 from $252-$255 FOB in mid-June. Ukraine has completed the 2012 wheat harvest, threshing 16.3 million tonnes of wheat bunker weight. The government says about 5 million tonnes of wheat could be exported in the 2012/13 season, which runs from July to June. Analysts have said, however, that the wheat crop was unlikely to exceed 14 million tonnes, and they put exports at 4.5 million tonnes. Ukraine harvested 22.3 million tonnes of wheat in 2011 and exported 5.3 million tonnes in 2011/12. 

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Corn and wheat move up

US wheat futures rose 1.8 percent on Thursday on concerns about tightening stocks in Russia due to drought that could force the country, one of the world's biggest wheat suppliers, to curb exports. New-crop soyabean futures backtracked from a 2.3 percent rise on Wednesday as more rains crossed the US Midwest crop belt, and corn prices rose on firm cash markets. At the Chicago Board of Trade, September wheat futures settled up 15 cents at $8.61-3/4 per bushel.

Benchmark December corn ended up 3-1/2 cents, or 0.4 percent, at $8.07-1/2 a bushel. Most-active November soyabeans fell 9-1/4 cents, or 0.6 percent, at $16.25-1/4 a bushel. Wheat futures advanced on news from Russia's SovEcon consultancy that Russian grain stocks at farms stood at 15.73 million tonnes as of Aug. 1, their lowest level since 2006. Wheat stocks fell to their lowest level since 2003 at 10.61 million tonnes. Russian grain stocks were down 18 percent year-on-year while wheat stocks were down 30 percent after the sales volume increased by 60 percent.

The data renewed worries that Russia would take steps to limit grain exports. The stocks figures followed two purchases in the past week by Egypt that traders said showed the determination of the world's largest wheat buyer to secure competitively priced Russian grain before a small export surplus runs out. "It's the same idea that it is going to lead to some kind of restriction at some point on the exports," said Dan Cekander, analyst with Newedge USA in Chicago.

Bullish technical signals added support as front-month CBOT wheat rebounded from a one-month low set on Tuesday at $8.38-1/4. "We broke out to the bottom the day before yesterday, and just getting back to the trading range probably stimulated some short-covering," Cekander said. Also supportive was dry weather in Western Australia, the country's main producing and exporting region, that could hurt the developing wheat crop there. New-crop soyabean futures were under pressure from much-needed rains in the US Midwest crop belt that could improve yield prospects for late-planted crops. 

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Argentina trims wheat outlook

Argentina's Agriculture Ministry trimmed its outlook for 2012/13 wheat area on Thursday to 3.7 million hectares from 3.82 million hectares a month ago, further dimming the crop's prospects. The South American country is the world's No 6 wheat exporter and the top supplier to neighbouring Brazil. But the area planted with wheat is seen shrinking by about 20 percent this season, largely due to commercial problems.

"There were practically no rains during the month of July, which made it impossible to finish seeding all the area that was initially forecast," the ministry said in its monthly crop report. Farmers complain that government intervention in grains markets has slashed the profitability of wheat, pushing them toward cultivating more corn and soya.

Argentine growers planted 4.63 million hectares with wheat in the 2011/12 crop year, producing 13.19 million tonnes. The US Department of Agriculture forecasts that Argentine wheat production will fall to 11.5 million tonnes in the 2012/13 season, down from 15 million tonnes a year earlier.

The Buenos Aires Grains Exchange said on Thursday that farmers finished planting wheat on a total of 3.6 million hectares during the last week, down from 4.6 million hectares in the prior growing season. "Just under half of that area is concentrated in Buenos Aires province, where average moisture conditions for the crop's seeding, growth and development range from good to excellent," the grains exchange said in its weekly crop progress report.

After a dry July, rains have picked up the pace in August. In its report, the local ministry held its forecast for the recently harvested 2011/12 soya crop at 40.1 million tonnes and kept its 2011/12 corn output projection at 21 million tonnes. It did not give estimates for 2012/13 corn or soyabean area in Argentina, the world's No 2 corn exporter and No 3 soyabean supplier. The Buenos Aires Grains Exchange reported that farmers were nearly done harvesting 2011/12 corn, which it estimated at 19.3 million tonnes.

"The average national yield (is estimated at) 5.51 tonnes per hectare ... making this the lowest yield in the last 12 seasons," the exchange said, citing drought-related losses to early-seeded corn. Farmers have gathered 99 percent of harvestable corn area, advancing 1.2 percentage points in the last week and beating last season's tempo by 0.7 points. The 2011/12 soya harvest is over and the government said production fell 18 percent from the prior season, also because of the drought. 

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FIFO killing local tourism, inquiry told

Michael Cavanagh

A Federal Parliamentary inquiry has heard fly in fly out mining is causing problems for some parts of the tourism sector, including tour and bus operators.

The House of Representatives committee hearing into the effects of FIFO has heard a submission from the Tourism and Transport Forum, the industry's main lobby group.

The forum's director of research and strategy Adele Labine-Romain says while hotel operators in mining centres do well catering to the influx of workers, off the road tourists can't get accommodation and therefore bypass the local attractions.

"That has implications for any of the businesses that are targeting the leisure visitor, because the attractions and tour operators, like the national parks that depend on visitor revenue for their funding, we are really seeing the peripheral organisations struggling in the face of the FIFO phenomena."

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US grain farmers harvest insurance payments

Brooke Neindorf

Farmers in the United States could be making more money in drought than if they'd actually harvested a good crop.

Eighty seven per cent of farmers in the States purchase revenue insurance as part of a farm program offered by the US Government.

Farmer and president of AgResource Company, Dan Basse, says farmers like having the safety net, especially when grain prices are high.

"It does mean when we have a catastrophic drought, like we are now experiencing, the farmer can come through and make a fairly good income, some would argue better than normal even if he had a crop," he said.

"But nonetheless it does give him comfort and (he's) able to sleep at night, (knowing) that next year he will still be on the farm.

"You know, as a farmer myself, I think this year I will make the most money ever because of the government insurance program."

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Landholder questions environmental approval process for Wandoan coal mine

 Virginia Tapp

A landowner in North Queensland says the Environmental Impacts Statement for the Southern Hemisphere's largest open cut coal mine is flawed.

George Houen has been involved in the sale of a number of properties to make way for the Wandoan Coal mine, and says the EIS was conducted assuming that Xstrata would own all land within the mining lease.

But he says the fact that three landholders are unlikely to sell means conditional approval of the mine was wrongly granted.

"Owners of all the properties within the mining leases got no consideration under the Environmental Protection Act," he said.

"Now the situation is that the minister has paid no regard to that in granting the Environmental Authority.

"Those remaining landholders have been denied their rights under the Environmental Protection Act."

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Agriculture Forum urges government to present dams' projects at CCI meeting

Agri Forum Pakistan has urged the government to present Kalabagh Dam, Munda Dam and Bhasha Dam projects in the Council of Common Interest (CCI) and start working on priority basis on that dam, which can be built at the earliest, generate maximum electricity and provide greater resistance against devastation of floods.
Agri Forum Pakistan Chairman Muhammad Ibrahim Mughal in a statement issued here on Friday said that the government should consult local and foreign engineers on all these three dams and start working on that dam which could be built at the earliest, could store more water and generate cheaper electricity. He said that Khyber Pakhtunkhwa was making efforts to construct Munda Dam to save Charsaddah and adjoining areas then why not Kalabagh Dam be constructed to save whole Southern Punjab, Dera Ismail Khan and other areas. He questioned if there is no need for approval of CCI on Munda Dam then why it is needed in case of Kalabagh Dam?

Ibrahim Mughal said that worst ever flood of Pakistan history which played havoc in 2012 was due to River Kabul, Swat, Chitral and Swan. He said Bhasha Dam could not stop even a single drop of water of these four rivers, so the government should take other steps to save Southern Punjab and other areas such as construction of Kalabagh Dam. Counting the benefits of Kalabagh Dam, Agri Forum Pakistan Chief said that it would generate cheaper electricity thus reducing the burden of Rs 131 from the poor and common people in shape of reduction in power bills. 

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Canadian canola futures rise

ICE Canadian canola futures rose on Thursday as early harvest yields were disappointing, shrugging off pressure from weaker Chicago soyabeans, traders said. Cooler overnight temperatures Wednesday in Western Canada raised some concerns about frost risk later this month, and crusher buying also supported the market in thin volumes - trader.

11 percent of canola swathed in Saskatchewan, overall crop harvest slightly ahead of schedule. Light rains give some relief to drought-stricken US corn, soya. November canola gained $2.80 to $610.80 per tonne on volume of 5,819 contracts. January added $2.50 to $615.20 per tonne on volume of 1,934 contracts. November-January spread narrowed to a January premium of $4.40, trading 1,124 times. Chicago Board of Trade November soyabeans eased 9-1/4 US cents at US $16.25-1/4 per bushel, on favourable rains. MATIF November rapeseed eased 0.1 percent, while Malaysian October palm oil gained 1.7 percent. Canadian dollar was trading at $0.9861 against the US dollar or US $1.0141 at 1:54 pm CDT (1854 GMT), down slightly from Wednesday's close at $0.9890 against the US dollar, or US $1.0111.

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KBD construction: LHC gives another chance to file reply

The Lahore High court (LHC) giving another chance to file reply in a petition seeking direction for construction of Kala Bagh Dam (KBD) by August 30. The court asked why the government is not serious to resolve this issue. The court further observed that why the government had not took serious steps to remove the objections of the provinces.

The court further observed that if any province has objection on the construction of KBD then why government moved the issue to Council of Common Interests. The petitioner Faroz Shah Gillani through his counsel A K Dogar contended that it is binding duty of the state to decide the issue of Kala Bagh Dam (KBD) in terms of constitution.

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Financial constraints: government likely to shelve Diamer-Bhasha dam

MUSHTAQ GHUMMAN

The government is likely to shelve high priority Diamer-Bhasha dam at least for the time being due to uncertain financial assistance from international financial institutions and Friends of Democratic Pakistan (FoDP) including Japan and will commence civil work on the project by utilising its own resources as well as establish power house as Independent Power Producer (IPP), well informed sources told Business Recorder.

World Bank and Asian Development Bank (ADB) have already conveyed diplomatically ''no financing'' to the multi-purpose dollars 12 billion project, which will also generate 4500MW electricity at very cheap rates. "We are considering putting off construction of Diamer-Bhasha dam due to financial constraints, but starting civil work and power house as run of the river project will be treated as IPP," the sources added.

For civil work, the government will consider to impose 10-15 paisa per unit surcharge on the pattern of Neelum Jhelum hydropower project despite the fact that Shaukat Aziz cabinet slapped ban on such surcharges in future. Wadpa requires about 2.5 billion dollars to complete civil work on the Diamer-Bhasha dam. According to sources, high level consultations at different forums are in progress in this regard and the entire plan will be ready prior to the visit of Prime Minister Raja Pervez Ashraf to China. "The Prime Minister will invite his Chinese counterpart to construct run of the river project as an IPP," the sources continued.

The sources said Foreign Minister Hina Rabbani Khar had also sought Japanese assistance in mega projects like Diamer-Bhasha and Mangla dam survey. However, Wapda is of the view that if Japan is unwilling to extend assistance for Diamer Bhasha, no assistance is needed for Mangla dam survey. When contacted, Chairman Wapda Shakil Durrani said that no plan was under consideration putting off Diamer-Bhasha dam. "Neither we have decided to shelve the project nor it will be treated as IPP," he clarified.

In reply to a question, Wapda Chairman said Pakistan would construct the high priority project without the help of ADB, adding that the issue of financing would be resolved. "We have not discontinued talks with the ADB however, the ADB is urging Pakistan to take World Bank on-board, which is apparently impossible," Durrani maintained.

Answering to a question, Durrani said Pakistan was also holding discussion with China on supplier''s credit in case Wapda purchases electro-mechanical equipment for the project. Presently, China is working on 10 projects in Pakistan. Exim Bank of China is expected to extend two billion dollars as supplier''s credit for purchase of electro-mechanical equipment.

Answering to another question, Wapda Chairman said all the government stakeholders were supporting Wapda, adding that position of financing would be clear after one month. "We have acquired 1500 acres of land for the project and awarded 13 contracts for different categories of works," he continued. At a recent meeting of Senate''s Standing Committee on Water and Power it was felt that Diamer-Bhash dam will be delayed for 10 years if government accepts WB funding for 4320MW Dasu hydropower project.

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Islamabad chamber calls for promoting organic farming

IQBAL MIRZA

Pakistan needs to promote organic farming which has potential of niche markets for local high-value, non-conventional, indigenous and local agricultural products such as medicinal herbs, according to the member, export, Islamabad Chamber of Commerce and Industry, Ahmad Jawad.

Organic farming is the best option for producing quality and healthy agriculture products on cheaper costs to cater to domestic needs besides attracting international market. Some legislation will have to be made to promote organic farming to keep the country's environment, soil and water clean as India has done, he said, adding that it saves the land from losses because of erosion and soil degradation, besides improving soil fertility.

Europe has been able to increase organic farming on maximum scale. Italy, alone has more than 30,000 certified organic farmers and India had done proper legislation for promotion of organic farming and exported a huge quantity of agriculture products produced by organic farming in 2004. Similarly, Iran also rapidly switched on in this regard. Unfortunately Pakistan is lagging behind, he said.

The subsidies for conventionally-produced food currently limited the growth of organic agriculture. Although organic products and its market outlets are limited, premium prices may boost the market. He said that the country had been spending huge amounts of foreign exchange on fertiliser imports when organic fertiliser was readily available in the country. The government provided a subsidy of Rs 45 billion on fertilisers to farmers during the first nine months of the fiscal year 2011-12, which needed to be converted and used in the infrastructure of agriculture interims of cold storages, pack houses, modern agri labs and R & D.

There is a dire need for local farmers to switch towards organic farming to save billions of rupees spent on imports and the government may also help farmer community in this regard. However, the main hurdle in moving towards organic farming in Pakistan is the certificate issuing authority. Those who are applying for organic farming, they get their certificate from abroad. Ahmad Jawad stressed that some local body should be established to issue the certificate. He said India has been issuing certificate for organic farming and that was accepted in EU countries.

Similarly, Ahmad Jawad was of the view that sugarcane waste were the best organic fertiliser and there were more than 83 sugarcane mills in the country to utilise the waste. There are other alternate sources of fertilisers; as Thar coal white ashes could be utilised as alternate fertiliser which has 7.5 percent potash. Even banana leaves and animal dung could be utilised as fertiliser.

Organic fertiliser not only produces healthy produce but also helps maintain soil productivity while chemical fertilisers damaged soil fertility with the passage of time, as we are witnessing in the Kinnow orchards; Kinnow taste is gradually lost. "It is time to change our mindsets to lead the country towards healthy and cheap agricultural production and help develop sustainable economy," Ahmad Jawad said. 

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Agriculture show preparations at advanced stage

Preparations are at an advanced stage for the national agricultural show which will be held on August 27. The show will be officially opened by the Managing Director of Stanbic Botswana, Leina Gabaraane.

 The theme for this year's show is  'Transforming agriculture in the wake of climate change'.
Speaking in an interview, the Chief Agricultural Information and Public Relations Officer for the Ministry of Agriculture, Boikhutso Rabasha said they are working around the clock to prepare for the event.

For the first time, this year's show will be held at the spacious new agricultural show ground which is located along the Sir Seretse Khama Airport road.  Rabasha said the animal kraals which were being constructed at the show ground, are almost complete, adding that they are also paving the site.  She said the show will occupy nine hectares of the 81 hectares plot.

"We have built temporary kraals for small livestock like pigs and goats," she said.   She added that before the end of this week, they anticipate to have set up the livestock judging ring, while the perimeter fence surrounding the venue has also been erected.

She revealed that exhibitors will be farmers from all over the country including both pastoral and arable farmers.
"We will also have exhibitors from the private sector," she said. 

The official said they are working to reticulate water to the showground as well as power.  As for power, she said, they have taken contingency measures in case Botswana Power Corporation (BPC) is not able to connect electricity in time.  She said they would have generators on stand by.   They also have partnerships with the Botswana Defence Force (BDF) and Botswana Prisons, who will contribute with labour.

"We believe that everything will be in place on the scheduled date.  There are challenges here and there but we will deal with them.  The main challenge is water," she said.   Rabasha also commended the contribution of the private sector.  She said there are numerous companies who are sponsoring the event, adding that they are still expecting more. 

"We will host a ceremony next week to receive cheques from the sponsors.  We have approached quite a number of sponsors.  We are still appealing for more sponsors," she declared.

Rabasha said in future, they want to hand over the show to farmers and the private sector, and have the ministry only provide technical assistance. 

This is the fourth time the ministry is organising the agricultural show as a separate entity. In the past, the agricultural exhibition was held as part of the Gaborone International Fair. Some of the main attractions at the national agricultural show will be the inaugural horse racing event.

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