International Sunflower Oil Price

Commentary – for the month July 2015.

Business: Agridivision

Market Overview:

• International Sunflower Oil Price is currently at $ 1102 per MT, however, future prospects do not seem to be favourable, as the price is expected to follow the crude oil price trend and plummet.

• Wheat harvesting has already completed. However, Prices fluctuated during the month and an upward trend was observed ranging from 1200 -1250 per maund.

• Rice crop sowing has been completed for both hybrid and OPV rice.  Transplantation of rice nurseries has already started in Sindh & Punjab. Reduction in acreage is expected in overall sowing due to lower produce prices for Rice crop in the previous season.

• Cotton sowing has been completed in Sindh & Punjab with a major decrease in early sown cotton segment, which contribute around 10% of total cotton acreage. No major pest infestation has been reported so far. Some attack of pink boll worm is seen in areas of Sindh, however it is not severe. Average produces prices ranging from Rs.2200 – 2500 per maund.

• Spring Corn harvesting has started. Persistent Rainfalls coupled with high temperature due to late sowing of crop is expected to result in lower yields for Spring Corn.

• Sowing of Hot pepper & Tomato is now started in Sindh

Key Business Highlights:

• Agri Division surpassed monthly budget of NSV & CM for June, mainly due to higher sales of Agrochemicals and Vegetable seeds. EBIT of Agri division got affected due to higher S&D cost.
• Agrochemical segment crossed 100 million CM in year 2014-15.
• Launched two new agrochemical products in June (Mighty 60EC and TopRice 4G)
• One new product GlyFast 48SL will be launched in July 2015.
• Vegetable Segment growth over SPLY for YTD is 31%.
• 30 MT of unbudgeted pea’s product, Meteor was imported and localy produced sold during the month. Rs. 5.46 Mn NSV and Rs. 1.4 Mn CM generated.
• Autumn Corns activities done aggressively – High Profile Field days in major pockets of Corn region
• High profile farmer gatherings in Pinanwal  & Mailsi to introduce our new Corn varieties with testimonial farmers
• Dealer Gatherings were conducted in Swabi & Mardan  to promote our corn varieties and engage dealers

Regulatory Updates:

• Product samples of Ulala and Lancer Gold are stuck at the port due to some documents issues at UPL; this may hamper our field activities plan for Khareef season.
• Registration for distributor licence in KPK has been received.
• Regulatory authorities in Sindh are involved in unethical practices and it takes lot of our time and energy to manage them.

Future Outlook:

• Autumn Corn and White Corn Activities will be focused upon to ensure liquidation of Hycorn 339 stock & white corn, which has arrived late.
• Tomato 1225 and Hot Pepper 509 varieties will be focused during July & onwards.
• Marketing Campaign for Ulala will continue during July as well.
• Longer Rain spell during July may affect Autumn Corn sales as sowing may get delayed till August.
• Heavy & longer rain spell may also affect spraying process in the field affecting  Agrochemicals sale
• Micronutrient Sales shall remain a challenge due to liquidity crunch in market and non- availability of NPK and registration issues of Humic Acid in Punjab
• Zodiac (Acephate) is being imported from UPL. However its shipment has been further delayed till Mid July.

Financial Commentary – For the month:

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