Commodity Prices at Market level
In the month of April the commodity prices have been showing an upward trend. The prices of Peal Millet (Bajra) have shown an unprecedented increase in some varieties. Bold variety which was reported at $126 per Mt on April 06, 2004 was trading at $160 per Mt on April 15. Similarly the prices of local variety increased from $107 per MT to $119 per MT at the Market yard.
Barley prices are also higher even though the stocks are arriving steadily in the markets. The local variety which was traded at $115 per MT at the start of the month was traded at $134 per MT in mid month.
Corn prices are also high. For Deshi (Red), the variety grown the parts of North India, Rajasthan, UP and some parts of Maharashtra the prices have jumped from $132 per MT to $151 per MT. The yellow variety that was traded at $138 per Mt at the start of the month was reported to be trading at $141 per MT at the market yards.
The US prices are stable and CBOT closed at $2.09 per bushel ($82.55 per MT) for May delivery. With more supplies available the prices are likely to stay low. The freight prices on the other hand are higher than normal, but as China stops buying more steel, freight costs might ease a little.
Awareness Campaign by Municipal Corporation of Delhi
The Municipal Corporation of Delhi in collaboration with U S Grains Council organized a Poultry Meat Inspection Awareness Camp on Thursday, April 21, 2005 for its veterinary officers. The awareness camp was done primarily to refresh the memory of the officers who will be responsible to check illegal slaughter of birds in the city of Delhi.
The Veterinary Department of Municipal Corporation of Delhi through its office order dated Nov 22, 2004 has given out the guidelines for meat shops which effectively also bans live bird sales and slaughter of birds in the MCD zones.
The Municipal Corporation of Delhi is building a new slaughter facility on a 6.04 acre plot close to the UP border for large animals and small animals. It is estimated that the facility will be ready by March 2006.
In order to make the inspectors with GOI and private sector poultry processing plants aware about food safety, HACCP systems and poultry meat inspection requirements, the council will be providing related information to the stakeholders at a Poultry Meat Training Course from April 24 -29, 2005 at Bombay. The course is being held in collaboration with Bombay Veterinary College, Bombay.
Novel Project in Morocco
The U S Grains Council has been involved in a novel project in Morocco with COPAG, a dairy co-operative. The project is one of its kind and will be conditioning the heifers on a contract basis for the farmers.
The dairy industry in Morocco is unorganized with average herd size of 2 – 5 animals. The farmers cannot increase the herd size as they have to take care of the heifers for their own self. As in India, heifers cost more if conditioned at own locations; farmers can purchase cows at a much cheaper rate.
Under this project, the farmers will be able to send their heifers on Day 03 to the facility (either on contract or sell), where in these animals will be taken care in lots. The current capacity of the feed lot is 5000 heads, which also includes fattening of bulls also.
The contract systems make available more cash to the farmer to increase the milking herd, which is more profitable. The facility aims to provide pregnant animals back into the system. Weigh gain target for females is 600 gm/day, while for males 1100 gm/day. It is projected that the animals from this facility will give birth at 22 months of age.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Sunday, April 24, 2005
Saturday, April 09, 2005
Commodity prices and its availability in 2005; Biosafety Protocol
Commodity prices and its availability in 2005
Prices of coarse cereals are stable for the last one week. The quotes at Market yards are as under:
Bajra – Pearl Millet – is being quoted @ Rs.3741 ($86) per ton in Haryana to highest in Gujarat @ Rs.7177 ($165) per ton. In Rajasthan the prices are quoted at Rs.6177 ($142) per ton.
Barley prices are the lowest in Haryana at Rs.4611 ($106) per ton while are highest in Gujarat @ Rs.5916 ($136) per MT. In Rajastan Barley is being traded at Rs.5568 ($128) per ton at the market yard.
Maize arrivals in most of the south Indian market yards has slowed down, while Bihar and UP are getting some large quantities. The prices are ranging from Rs.5002 ($115) per ton in Karnataka to a high of Rs.6612 ($152) in Rajasthan. In UP and Bihar the prices are Rs.5437 ($125) and Rs.5133 ($118) per ton respectively. In Tamil Nadu the prices are Rs.5611 ($129) per ton, higher than the March average prices.
CBOT prices for corn were lower than estimated on Friday. CBOT closed at $2.04 per bushel ($80.29 per ton) for May delivery and $2.12 per bushel ($83.44 per ton) for July delivery.
FAO in its recent report has forecast the grain production at 1.971 billion tonnes, including rice in milled terms. That figure is above the average of the past five years, but down slightly on last year's record level.
According to the report, the forecast was based on "conditions of crops already in the ground and planting intentions for those still to be sown later this year and assuming normal weather for the remainder of the 2005 cropping seasons."
As per the report, dry weather in several Asian countries since late last year has reduced the 2004 secondary paddy crop season, which is nearing its conclusion. The situation has led to international price increases, FAO noted.
However, prices for wheat and coarse grains remain below last year, reflecting large availabilities in the major exporting countries, generally favorable prospects for the 2005 crops and relatively slack demand, the agency noted.
If the current production forecasts hold true, FAO forecasts that world cereal output in 2005 may not be sufficient to meet next year's expected use without a draw-down of world carryover reserves. A notable reduction of 16 million tonnes in world stocks may in fact be needed, even if world cereal utilization in 2005-06 remains close to trend at some 1.955 billion tonnes.
"However, should use exceed trend, as has been the case this season, the bigger deficit would have to be met by larger draw-down of stocks, while cereal prices may also rise sharply," FAO said.
Food Outlook has revised upward its forecast for global cereal trade in 2004-05, mainly because of higher wheat imports.
"Based on the latest indications, international trade in cereals in 2004-05 is forecast at 231 million tonnes, up 3 million from the previous report but still slightly below the previous season," FAO said.
The meat market is expected to recover in 2005 as markets open up and exportable meat supplies increase. However, the report warns, meat markets in 2005 could still be influenced heavily by food safety concerns in the wake of Asian human fatalities due to Avian Influenza and bovine spongiform encephalopathy.
Bio safety Protocol (from a note circulated by Crop Life)
The Biosafety Protocol came into force on 11 September 2003. Currently 114 countries have become Party to the Protocol (ie: made it law in their own country), including the European Union countries, Mexico, Japan, Switzerland, Brazil and New Zealand, as well as most African and Asian nations. Many of these countries – which have voluntarily undertaken the legal obligations of the Protocol - do not have adequate systems in place to handle requests for imports or to comply with even the most basic Protocol requirements. Canada, China, Russia, Argentina, Australia and the United States (i.e., the major agricultural exporting countries) have not joined the Protocol.
In order that the trade is not affected, Biosafety Protocol implementation work should focus first and foremost on capacity building to bring all Parties into compliance rather than creating new obligations. As additional implementation matters are considered in the future, care must be taken to carefully balance the need for an adequate level of biosafety with the goal of ensuring the continued availability of the technology to those wishing to benefit from it.
In this regard, material exists to help national governments (e.g., CropLife International Reference Guide for Biosafety Frameworks Addressing the Release of Plant LMOs and Model Act: Proposed Provisions for a Transparent, Effective and Workable Biosafety Regulatory Framework, both available, free of charge, in English, Spanish and French at www.croplife.org and www.arentfox.com/biosafetymodelact.pdf).
Should you need any more information, please feel free to contact the undersigned
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Prices of coarse cereals are stable for the last one week. The quotes at Market yards are as under:
Bajra – Pearl Millet – is being quoted @ Rs.3741 ($86) per ton in Haryana to highest in Gujarat @ Rs.7177 ($165) per ton. In Rajasthan the prices are quoted at Rs.6177 ($142) per ton.
Barley prices are the lowest in Haryana at Rs.4611 ($106) per ton while are highest in Gujarat @ Rs.5916 ($136) per MT. In Rajastan Barley is being traded at Rs.5568 ($128) per ton at the market yard.
Maize arrivals in most of the south Indian market yards has slowed down, while Bihar and UP are getting some large quantities. The prices are ranging from Rs.5002 ($115) per ton in Karnataka to a high of Rs.6612 ($152) in Rajasthan. In UP and Bihar the prices are Rs.5437 ($125) and Rs.5133 ($118) per ton respectively. In Tamil Nadu the prices are Rs.5611 ($129) per ton, higher than the March average prices.
CBOT prices for corn were lower than estimated on Friday. CBOT closed at $2.04 per bushel ($80.29 per ton) for May delivery and $2.12 per bushel ($83.44 per ton) for July delivery.
FAO in its recent report has forecast the grain production at 1.971 billion tonnes, including rice in milled terms. That figure is above the average of the past five years, but down slightly on last year's record level.
According to the report, the forecast was based on "conditions of crops already in the ground and planting intentions for those still to be sown later this year and assuming normal weather for the remainder of the 2005 cropping seasons."
As per the report, dry weather in several Asian countries since late last year has reduced the 2004 secondary paddy crop season, which is nearing its conclusion. The situation has led to international price increases, FAO noted.
However, prices for wheat and coarse grains remain below last year, reflecting large availabilities in the major exporting countries, generally favorable prospects for the 2005 crops and relatively slack demand, the agency noted.
If the current production forecasts hold true, FAO forecasts that world cereal output in 2005 may not be sufficient to meet next year's expected use without a draw-down of world carryover reserves. A notable reduction of 16 million tonnes in world stocks may in fact be needed, even if world cereal utilization in 2005-06 remains close to trend at some 1.955 billion tonnes.
"However, should use exceed trend, as has been the case this season, the bigger deficit would have to be met by larger draw-down of stocks, while cereal prices may also rise sharply," FAO said.
Food Outlook has revised upward its forecast for global cereal trade in 2004-05, mainly because of higher wheat imports.
"Based on the latest indications, international trade in cereals in 2004-05 is forecast at 231 million tonnes, up 3 million from the previous report but still slightly below the previous season," FAO said.
The meat market is expected to recover in 2005 as markets open up and exportable meat supplies increase. However, the report warns, meat markets in 2005 could still be influenced heavily by food safety concerns in the wake of Asian human fatalities due to Avian Influenza and bovine spongiform encephalopathy.
Bio safety Protocol (from a note circulated by Crop Life)
The Biosafety Protocol came into force on 11 September 2003. Currently 114 countries have become Party to the Protocol (ie: made it law in their own country), including the European Union countries, Mexico, Japan, Switzerland, Brazil and New Zealand, as well as most African and Asian nations. Many of these countries – which have voluntarily undertaken the legal obligations of the Protocol - do not have adequate systems in place to handle requests for imports or to comply with even the most basic Protocol requirements. Canada, China, Russia, Argentina, Australia and the United States (i.e., the major agricultural exporting countries) have not joined the Protocol.
In order that the trade is not affected, Biosafety Protocol implementation work should focus first and foremost on capacity building to bring all Parties into compliance rather than creating new obligations. As additional implementation matters are considered in the future, care must be taken to carefully balance the need for an adequate level of biosafety with the goal of ensuring the continued availability of the technology to those wishing to benefit from it.
In this regard, material exists to help national governments (e.g., CropLife International Reference Guide for Biosafety Frameworks Addressing the Release of Plant LMOs and Model Act: Proposed Provisions for a Transparent, Effective and Workable Biosafety Regulatory Framework, both available, free of charge, in English, Spanish and French at www.croplife.org and www.arentfox.com/biosafetymodelact.pdf).
Should you need any more information, please feel free to contact the undersigned
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Tuesday, April 05, 2005
Commodity prices and stability; More research on Biotechnology
Corn prices in India and stability
Corn and sorghum prices in India have been showing an interesting trend. Last week of March 2005 saw average prices of all varieties of both commodities fall in all states except yellow maize which was up to Rs.6568 ($151) per MT and prices in TN up to Rs.5611 ($129) per MT for corn. The prices were up from Rs.5350 ($123) per MT. The above prices were market yard prices inclusive of packing. The prices are further bound to increase due to the increase of diesel prices, which will affect transport cost.
Though socks from Bihar and UP have started to come in the market, the moisture level is reported to be high, ranging from 16 – 18 percent, which will affect the keeping quality of corn.
Other coarse cereals have also started to arrive in the market which have significant relevance in poultry and livestock feed, Pearl Millet (Bajra) and Barley. Prices in the last week of March were reported as under:
Bajra (Bold) – Rs.5960 ($137) per MT
Bajra (Small) – Rs.6525 ($150) per MT
Prices in Rajasthan were Rs.6046 ($139) per MT.
Overall prices were higher than the MSP announced by GOI, but the maize prices are not so high to warrant a shift towards Bajra in poultry rations.
Barley prices were reported as under:
Barley (Local) Rs.5220 ($120) per MT
Gujarat Rs.5400 ($ 124) per MT
Rajasthan Rs.5570 ($128) per MT
The prices were at the MSP announced by GOI. Current barley use is limited to malt production. Of the estimated 1.4 MMT of barley produced in India, about 0.2 MMT is used for malt production, which is used for food and beer manufacture. Though India may not have a large beer drinking population, the demand is increasing slowly with new brands being launched.
FOB prices of commodities from US were reported as under:
Corn - $98.5 per MT (US Gulf) / $115 per MT (PNW) for May delivery
Corn - $99 per MT (US Gulf) / $115 per MT (PNW) for June delivery
Sorghum prices were also reported at $103.5 per MT (US Gulf) for May and June deliveries
Barley prices were reported at $119 per MT (FOB PNW) for April / May and June delivery.
USDA announced the planting intensions for the commodities which were higher for corn from last year, but lower for Sorghum and Barley. While corn plating is expected to be up by 0.6%, planting for Sorghum and Barley is expected to be down by 1.14 % and 11.77 percent respectively.
The detailed market report can be found at:
http://www.grains.org/buying/market_perspectives/mp_04-01-05.pdf
Reports suggest a severe drought in Brazil, which has effected the grain production, and ultimately the prices. It is estimated that the grain production will be lower by about 9% of the initial estimates, which is almost 13 MMT of grain. Most effected crops include Corn and Soybean. Corn is lower by 10%. Brazil is the major exporter of Soybean and this drought has affected the supplies. In the context of poultry, as the input prices will be higher, and the output prices are bound to increase, which will affect Brazil’s competitiveness in the world market. With that said, even it the prices of corn and soybean go up by 10 percent will India have a chance to compete and replace Brazilian chicken? It is a big question which will need to be answered.
More research on Biotech Crops
If reports are to be believed more and more people in US are eating genetically engineered crops without any fear. Most are not concerned as they have the trust on the government that the food being made available is cleared and this clearly indicates that there is no labelling on the packs.
Scientists in UK have been able to engineer 'Super Gold rice' an improved version of "Golden Rice", which has almost 20 times more beta-Carotene – precursor of Vitamin A which the body converts into Vitamin A and the deficiency of which causes night blindness. The new rice contains a gene from Maize. The way it has been done, the technology provides the rice a maximum carotenoid level of 37 micrograms per gram of rice and a preferential accumulation of beta-carotene.
It has enough Vitamin A to provide 100 per cent of the recommended dietary allowance of vitamin A from just 70g of rice, according to its developers.
World Health Organisation estimates that vitamin A deficiency causes 500,000 cases of child blindness a year, and kills some 6,000 people across south-east Asia.
New biotech capabilities are allowing researchers to develop plants with higher amounts of health nutrients. Last year a team at Bristol University engineered a new strain of Arabidopsis, a relative of the cabbage, which had substantial quantities of they fatty acids arachidonic acid (ARA) and eicosapentaenoic acid (EPA).
Another team, in Germany, designed a linseed plant that accumulates significant levels of PUFA.
Like the new rice, such developments offer cheaper or more plentiful supply of key nutrients than current sources; however they also face safety concerns and consumer resistance to genetic engineering.
In Asia, the average person eats rice two or three times a day and it has also has become a staple food in many African countries. Milled white rice contains essentially no beta-carotene and unmilled brown rice contains a very small amount.
Though Indian scientists have been working very closely with the international community on the biotech research, most of it is confined to the lab and there is still time that the findings will be available and the products commercialized. It has been hinted many a times that this is due to lack of a policy framework which directs the research as well as a commercialization of the products.
India has unveiled a draft strategy for developing biotechnology. The special focus is on easing regulatory mechanisms and increasing biology education and training.
The strategy could help India's biotechnology sector generate revenues of up to US$5 billion annually and create one million jobs by 2010, says Dr.Bhan, Secretary, Department of Biotechnology, Government of India. The draft is open for public comments for six weeks, after which time it will be finalised.
A key feature of the draft strategy is the proposal to set up an autonomous National Biotechnology Regulatory Authority to approve biotechnology products — until now, a task handled by the Genetic Engineering Approval Committee of the Ministry of Environment and Forests. The new regulatory authority is aimed to provide separate divisions devoted to three areas: agricultural products and transgenic crops; pharmaceuticals and industrial products; and transgenic food, feed and animal aquaculture.
The draft report is based on the recommendations of two expert panels on agricultural and pharmaceutical biotechnology products, headed respectively by India's crop expert M. S. Swaminathan and by Raghunath Mashelkar, director general of the Council of Scientific and Industrial Research.
The report concludes that the current guidelines for clearing the products is very complex and involves multiple ministries and regulators which lack co-ordination. The system needs to streamline the guidelines and procedures which will speed up the process of approval.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Corn and sorghum prices in India have been showing an interesting trend. Last week of March 2005 saw average prices of all varieties of both commodities fall in all states except yellow maize which was up to Rs.6568 ($151) per MT and prices in TN up to Rs.5611 ($129) per MT for corn. The prices were up from Rs.5350 ($123) per MT. The above prices were market yard prices inclusive of packing. The prices are further bound to increase due to the increase of diesel prices, which will affect transport cost.
Though socks from Bihar and UP have started to come in the market, the moisture level is reported to be high, ranging from 16 – 18 percent, which will affect the keeping quality of corn.
Other coarse cereals have also started to arrive in the market which have significant relevance in poultry and livestock feed, Pearl Millet (Bajra) and Barley. Prices in the last week of March were reported as under:
Bajra (Bold) – Rs.5960 ($137) per MT
Bajra (Small) – Rs.6525 ($150) per MT
Prices in Rajasthan were Rs.6046 ($139) per MT.
Overall prices were higher than the MSP announced by GOI, but the maize prices are not so high to warrant a shift towards Bajra in poultry rations.
Barley prices were reported as under:
Barley (Local) Rs.5220 ($120) per MT
Gujarat Rs.5400 ($ 124) per MT
Rajasthan Rs.5570 ($128) per MT
The prices were at the MSP announced by GOI. Current barley use is limited to malt production. Of the estimated 1.4 MMT of barley produced in India, about 0.2 MMT is used for malt production, which is used for food and beer manufacture. Though India may not have a large beer drinking population, the demand is increasing slowly with new brands being launched.
FOB prices of commodities from US were reported as under:
Corn - $98.5 per MT (US Gulf) / $115 per MT (PNW) for May delivery
Corn - $99 per MT (US Gulf) / $115 per MT (PNW) for June delivery
Sorghum prices were also reported at $103.5 per MT (US Gulf) for May and June deliveries
Barley prices were reported at $119 per MT (FOB PNW) for April / May and June delivery.
USDA announced the planting intensions for the commodities which were higher for corn from last year, but lower for Sorghum and Barley. While corn plating is expected to be up by 0.6%, planting for Sorghum and Barley is expected to be down by 1.14 % and 11.77 percent respectively.
The detailed market report can be found at:
http://www.grains.org/buying/market_perspectives/mp_04-01-05.pdf
Reports suggest a severe drought in Brazil, which has effected the grain production, and ultimately the prices. It is estimated that the grain production will be lower by about 9% of the initial estimates, which is almost 13 MMT of grain. Most effected crops include Corn and Soybean. Corn is lower by 10%. Brazil is the major exporter of Soybean and this drought has affected the supplies. In the context of poultry, as the input prices will be higher, and the output prices are bound to increase, which will affect Brazil’s competitiveness in the world market. With that said, even it the prices of corn and soybean go up by 10 percent will India have a chance to compete and replace Brazilian chicken? It is a big question which will need to be answered.
More research on Biotech Crops
If reports are to be believed more and more people in US are eating genetically engineered crops without any fear. Most are not concerned as they have the trust on the government that the food being made available is cleared and this clearly indicates that there is no labelling on the packs.
Scientists in UK have been able to engineer 'Super Gold rice' an improved version of "Golden Rice", which has almost 20 times more beta-Carotene – precursor of Vitamin A which the body converts into Vitamin A and the deficiency of which causes night blindness. The new rice contains a gene from Maize. The way it has been done, the technology provides the rice a maximum carotenoid level of 37 micrograms per gram of rice and a preferential accumulation of beta-carotene.
It has enough Vitamin A to provide 100 per cent of the recommended dietary allowance of vitamin A from just 70g of rice, according to its developers.
World Health Organisation estimates that vitamin A deficiency causes 500,000 cases of child blindness a year, and kills some 6,000 people across south-east Asia.
New biotech capabilities are allowing researchers to develop plants with higher amounts of health nutrients. Last year a team at Bristol University engineered a new strain of Arabidopsis, a relative of the cabbage, which had substantial quantities of they fatty acids arachidonic acid (ARA) and eicosapentaenoic acid (EPA).
Another team, in Germany, designed a linseed plant that accumulates significant levels of PUFA.
Like the new rice, such developments offer cheaper or more plentiful supply of key nutrients than current sources; however they also face safety concerns and consumer resistance to genetic engineering.
In Asia, the average person eats rice two or three times a day and it has also has become a staple food in many African countries. Milled white rice contains essentially no beta-carotene and unmilled brown rice contains a very small amount.
Though Indian scientists have been working very closely with the international community on the biotech research, most of it is confined to the lab and there is still time that the findings will be available and the products commercialized. It has been hinted many a times that this is due to lack of a policy framework which directs the research as well as a commercialization of the products.
India has unveiled a draft strategy for developing biotechnology. The special focus is on easing regulatory mechanisms and increasing biology education and training.
The strategy could help India's biotechnology sector generate revenues of up to US$5 billion annually and create one million jobs by 2010, says Dr.Bhan, Secretary, Department of Biotechnology, Government of India. The draft is open for public comments for six weeks, after which time it will be finalised.
A key feature of the draft strategy is the proposal to set up an autonomous National Biotechnology Regulatory Authority to approve biotechnology products — until now, a task handled by the Genetic Engineering Approval Committee of the Ministry of Environment and Forests. The new regulatory authority is aimed to provide separate divisions devoted to three areas: agricultural products and transgenic crops; pharmaceuticals and industrial products; and transgenic food, feed and animal aquaculture.
The draft report is based on the recommendations of two expert panels on agricultural and pharmaceutical biotechnology products, headed respectively by India's crop expert M. S. Swaminathan and by Raghunath Mashelkar, director general of the Council of Scientific and Industrial Research.
The report concludes that the current guidelines for clearing the products is very complex and involves multiple ministries and regulators which lack co-ordination. The system needs to streamline the guidelines and procedures which will speed up the process of approval.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
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