Imports of agri commodities – A big question
Another tender of 0.4 MMT of wheat was announced on Thursday, July 27, 2006. With this tender the total imports of wheat into India will be close to 3.9 MMT at zero percent duty. There has been confusion on duty on imports by private players and traders, which at one time was announced as zero percent, but later increased to 5 percent.
Price analysis in early July 2006 indicated that it is not only the food grain (wheat) which is in short supply, but also the coarse cereals and pulses are in short supply and thus the duty on imports of pulses was slashed.
The situation is somewhat similar for Maize as well and the price to the end user is about Rs.7200 – Rs.7300 per MT, about 35% higher that the Minimum Support Price (MSP) announced by GOI. The steep price is making it difficult for the poultry farmers and starch manufacturers to use more maize.
Looking at the prices at the market yard, the average price for maize is Rs.6233 ($135.5) per MT. Other grains like Sorghum (Rs.7263 per MT), and Bajra (Rs.6431 per MT) and still higher and can not be used in poultry feed.
GOI has decided to release maize from the FCI go-downs. Reports indicate that 0.45 MMT of maize will be released into the market by open tender and another 0.1 MMT will be at the discretion of the State Director of Animal Husbandry, for which the price to the end users has been fixed at Rs.5500 and the difference between the market value and the fixed value will be covered by the Department of Animal Husbandry. The 0.1 MMT has been earmarked as 50,000 tons for Andhra Pradesh and 25,000 tons each for Tamil Nadu and Maharashtra. Stocks for Maharashtra will be released from Karnataka, while that for Andhra Pradesh and Tamil Nadu will be released from Andhra Pradesh. The condition of the stock is still to be examined and it will be some time before these stocks area available. Based on the numbers the average requirement for India for maize is over 1.1 MMT and the FCI maize will cover only 50% of the months requirement.
CBOT this week closed for Sept delivery at $2.372 per bushel ($93.36 per MT) and for Dec delivery $2.534 per bushel ($99.73 per MT),which is same as last week’s close.
The ocean freight rates are expected to jump due to the increase in the crude oil prices and additional fuel surcharges being levied. As per Mr.Ken Eriksen, vice president-transportation, Informa Econmics, who spoke at the U.S. Grains Council’s 46th Board of Delegates’ Meeting, the US domestic freight traffic will increase 67 percent and general cargo 113 percent. Barges are the most fuel-efficient transportation method and will remain so, followed by rail and then truck. But as many barges are due to be retired soon, higher demand for barges is likley to increase the prices.
He also pointed out that that ocean freight is a rising wave with larger and larger ships coming on line, including a 96,000 TEU (20 feet equivalent units) containership.
How to feed the growing population?
The populations is two most populous countries, China and India are incearsing fast and India is likley to take over China and become the most populous country by 2025. By 2050 the world population is going to increase to 8.5 – 9.6 billion and most of this population increase is going to come from Asia, which has only 30% of arable land. There are only two ways to feed the increasing population, either increase the productivity from the current land or import.
Along with the population increase, the affluence of the people is also increasng and food is the first change people tend to make as their income increases. This allows them to move from grains and oils to meat, milk and eggs which not only help improve their diets
China and India have started a move towrads imports, China with import of corn to feed the increased animal populations and India with wheat to feed its growing human population.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Jul 29, 2006
Saturday, July 29, 2006
Monday, July 24, 2006
Corn prices in India move up, supply becoming tight; Pressure on Ethanol – more corn production in US
Corn prices in India move up, supply becoming tight
Corn prices in almost all consumption areas went up and average corn prices are close to Rs.6200 ($135) per MT at the market yards. Delivered prices are close to Rs.6800 – Rs.7200 ($149 - $157) per MT depending on the destination. The prices are higher than last year during the same period by about 4% (at the market yard).
Till date no concrete information on release of corn stocks from Food Corporation of India in Karnataka and Andhra Pradesh is available. Unless that happens or GOI allows imports, it will be difficult for the end users (poultry and starch) sector to meet their requirements.
While prices of Sorghum are higher than last week by about Rs.150 per ton, ruling at Rs.7670 per MT, they are still lower than last year by Rs.740 per ton at the market yard.
Pearl Millet (Bajra) prices are also higher by Rs.115 per MT over last week, ruling at Rs.6640 per MT but lower than last year by about Rs.120 per MT at the market yard.
Barley prices are at the market yard is higher than last week by about Rs.60 per MT (a very small increase) and ruling at over Rs.7000 per MT, which to almost all malt manufacturers is a higher price. The price is also higher than last year by Rs.190 per MT.
In the US, CBOT closed lower than last week. Sept delivery was $93.36 Per MT while Dec delivery was $99.73 per MT. The FOB values (US Gulf) were $112.30 for July and August and $116.65 for Sept 2006. USDA expects the production of corn for 2006 to be 266.7 MMT, while the Informa Ecomonics estimate the corn crop to be 277 MMT.
Pressure on Ethanol – more corn production in US
Increase in the industrial usage of corn, especially ethanol is going to put pressure on corn and will eventually lead to more corn acres being planted in the US at the expense of wheat and soy.
International Grains Council has forecast a jump of 38.1 MMT in industrial grain usage from 2005-06 estimates to 2006-07, the major change coming through ethanol production. The estimate for 2005-06 was ethanol, 41 MMT; Starch 68.2 MMT; Brewing 29.7 MMT; and others 9.1 MMT, making a total of 147.9 MMT in industrial usage. The provisional numbers for 2005-06 are 50.2 MMT for ethanol; 72.6 MMT for Starch; 30.7 MMT for brewing and 10.1 MMT for others. For the 2006-07 forecast, the numbers are 65.3 MMT for ethanol; 79 MMT for Starch; 31.3 MMT for Brewing and 10.3 MMT for other usage.
This increased demand for ethanol production is also likely to push the pries higher. In 2005 the average corn price was $1.98 per bushel ($77.93 per MT). For the current crop is is estimated at $2.33 per bushel ($91.71 per MT). By 2010 the average price will be $2.69 per bushel ($105.88 per MT).
A research conducted by University of Missouri indicates than over a long term, ethanol will have a major impact on corn acres. Five US states, Missouri, Iowa, Illinois, Indiana and Ohio plant 36 Million acres of corn and a similar amount of land is on Soy. By 2010, the five states will grow corn on 39 Million acres and soy crop will be grown on 33 million acres.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Jul 22, 2006
Corn prices in almost all consumption areas went up and average corn prices are close to Rs.6200 ($135) per MT at the market yards. Delivered prices are close to Rs.6800 – Rs.7200 ($149 - $157) per MT depending on the destination. The prices are higher than last year during the same period by about 4% (at the market yard).
Till date no concrete information on release of corn stocks from Food Corporation of India in Karnataka and Andhra Pradesh is available. Unless that happens or GOI allows imports, it will be difficult for the end users (poultry and starch) sector to meet their requirements.
While prices of Sorghum are higher than last week by about Rs.150 per ton, ruling at Rs.7670 per MT, they are still lower than last year by Rs.740 per ton at the market yard.
Pearl Millet (Bajra) prices are also higher by Rs.115 per MT over last week, ruling at Rs.6640 per MT but lower than last year by about Rs.120 per MT at the market yard.
Barley prices are at the market yard is higher than last week by about Rs.60 per MT (a very small increase) and ruling at over Rs.7000 per MT, which to almost all malt manufacturers is a higher price. The price is also higher than last year by Rs.190 per MT.
In the US, CBOT closed lower than last week. Sept delivery was $93.36 Per MT while Dec delivery was $99.73 per MT. The FOB values (US Gulf) were $112.30 for July and August and $116.65 for Sept 2006. USDA expects the production of corn for 2006 to be 266.7 MMT, while the Informa Ecomonics estimate the corn crop to be 277 MMT.
Pressure on Ethanol – more corn production in US
Increase in the industrial usage of corn, especially ethanol is going to put pressure on corn and will eventually lead to more corn acres being planted in the US at the expense of wheat and soy.
International Grains Council has forecast a jump of 38.1 MMT in industrial grain usage from 2005-06 estimates to 2006-07, the major change coming through ethanol production. The estimate for 2005-06 was ethanol, 41 MMT; Starch 68.2 MMT; Brewing 29.7 MMT; and others 9.1 MMT, making a total of 147.9 MMT in industrial usage. The provisional numbers for 2005-06 are 50.2 MMT for ethanol; 72.6 MMT for Starch; 30.7 MMT for brewing and 10.1 MMT for others. For the 2006-07 forecast, the numbers are 65.3 MMT for ethanol; 79 MMT for Starch; 31.3 MMT for Brewing and 10.3 MMT for other usage.
This increased demand for ethanol production is also likely to push the pries higher. In 2005 the average corn price was $1.98 per bushel ($77.93 per MT). For the current crop is is estimated at $2.33 per bushel ($91.71 per MT). By 2010 the average price will be $2.69 per bushel ($105.88 per MT).
A research conducted by University of Missouri indicates than over a long term, ethanol will have a major impact on corn acres. Five US states, Missouri, Iowa, Illinois, Indiana and Ohio plant 36 Million acres of corn and a similar amount of land is on Soy. By 2010, the five states will grow corn on 39 Million acres and soy crop will be grown on 33 million acres.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Jul 22, 2006
Saturday, July 15, 2006
Commodity Prices stable, but quality an issue; Ethanol from Sugar, Molasses or Corn?; Bugs that contaminate your poultry meat supplies
Commodity Prices stable, but quality an issue
The corn prices in India have remained stable for almost 2 weeks now and were close to Rs.6132 ($133.3) per MT on an average (all India) at the market yard. The prices are also lower than last year by almost 2.3%, primarily because of drop in consumption in the poultry sector. Prices in Karnataka and Bihar have shown a declining trend. Reports indicate flooding in North Bihar and arrival of some low quality grain in the market yards. Average prices in almost all states are higher. Andhra Pradesh Rs.5566 ($121); Gujarat Rs.6992 ($152); Maharashtra Rs.6486 ($141); Tamil Nadu Rs.6440 ($140); and Uttar Pradesh Rs.6762 ($147) per MT.
Sorghum prices have shown a decline from last week Rs.7788 ($169) per MT to Rs.7521 ($164) per MT, a drop of almost 3.4%. The price is also down from last year by almost 7%. The drop is mainly attributed to increased arrivals in Gujarat, Maharahstra and rajasthan which has reduced the prices.
Pearl Millet (Bajra) prices are marginally higher than last weeks Rs.6205 ($135) per MT to Rs.6527 ($142) per MT, an increase of 5.2%. The prices are also higher than last years by 1.3%.
Barley prices dropped marginally from last weeks Rs.7291 ($159) per MT to Rs.6972 ($152) per MT, a drop of 4.3%, but the prices are still higher than last year’s price by 6.8%. The average prices in Rajasthan dropped by Rs.420 ($9) per MR over last week, while the prices in Uttar Pradesh are up by almost Rs.139 ($3) in the last one week.
In the US the prices of corn are higher than last week. July corn closed at $99.73 per MT, higher by $4.88 per MT over last week; Sept corn closed at $102.57, higher by $3.78 per MT; Dec corn $108.86 per MT, higher by $4.56 per MT. Analysts believe this increase in primarily due to the dry conditions prevailing in the US corn belt over the past one week.
Ethanol from Sugar, Molasses or Corn?
Ethanol manufactured from which feed / sugar stock is the most economical? This is a big question which has been asked many times prior and would continue to be asked. Under the current circumstances, when the spot prices of ethanol in the US market are as high as $4 per gallon (Rs.48.61 per liter), due to high demand, it may be most profitable to make ethanol from Sugar cane, Sugar Beets, Raw or refined sugar. But it may not be for long. The future prices of ethanol are likely to fall to $2.4 per gallon (Rs.29.16 per liter), which would make manufacture of ethanol from the sugar stocks uneconomical.
Based on the numbers available from USDA’s latest survey report on ethanol manufacture, it costs $1.03 - $1.05 per gallon (Rs.12.52 – Rs.12.76 per liter) to manufacture ethanol from corn in the US through wet and dry milling respectively. It costs $1.27 per gallon (Rs.15.43 per liter) to manufacture ethanol through Molasses. In Brazil the cost of production of ethanol from Sugar Cane is the cheapest at $0.81 per gallon (Rs.9.84 per liter), because the cost of feed stock (sugar cane is the cheapest in Brazil at $0.30 per gallon of ethanol produced (Rs.3.64 per liter of ethanol produced) and the processing costs is $0.51 per gallon of ethanol produced (Rs.6.20 per liter of ethanol produced), which is similar to the cost of processing when ethanol is produced through a dry milling process. The cost of feed stock varies.
For the detailed USDA study, please feel free to contact us and we shall be pleased to forward the details to you.
Bugs that contaminate your poultry meat supplies
Recent studies indicate that E Coli, which causes Diarrhea, Urinary Tract Infections and more severe infections in humans is getting resistant to antibiotics, especially fluoroquinolones, through chickens. Studies in US indicate that the microbes have mutated, become resistant and then transmitted to humans.
In such a situation is becomes necessary to take action and interrupt the transmission of the bacteria from animals to humans. This is possible by three ways, limit the use of prescription drugs in food animals, adopting hygienic food processing and distribution practices and improving kitchen hygiene.
Another bug which effects human health and is directly related to hygienic processing and handling is Campylobacter. Research conducted in New Zealand reveals that the country has the highest reported cases on Campylobacter, which gets into the food chain through raw fresh chicken, which has not been processed properly or processed under unhygienic conditions.
Campylobacter is found in the intestines of chickens and improper processing contaminates the meat. Its gets transmitted through infected feces and water. Even a drop of juice from contaminated poultry can cause Diarrhea.
The consumers must ensure that the chicken is packed properly and there are no leaking juices; before handling raw chicken, hands must be washed thoroughly and when storing in the refrigerator, chicken must be put in the bottom shelf, covered and the juices should not contaminate other food products. The chopping boards must be cleaned after use.
Another bug that is of importance and is a health hazard is Salmonella, which is also found is chicken, but there are other carriers of the bug, including humans who have had salmonella infection and may have been cured, but would remain carriers. Proper care by food handlers and hygiene in kitchen can prevent salmonella infections.
It is the duty of the government to check that the supply of poultry is safe and at the same time the companies need to make sure that consumers are made aware of hygienic processing and safe handling of poultry meat.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Jul 15, 2006
The corn prices in India have remained stable for almost 2 weeks now and were close to Rs.6132 ($133.3) per MT on an average (all India) at the market yard. The prices are also lower than last year by almost 2.3%, primarily because of drop in consumption in the poultry sector. Prices in Karnataka and Bihar have shown a declining trend. Reports indicate flooding in North Bihar and arrival of some low quality grain in the market yards. Average prices in almost all states are higher. Andhra Pradesh Rs.5566 ($121); Gujarat Rs.6992 ($152); Maharashtra Rs.6486 ($141); Tamil Nadu Rs.6440 ($140); and Uttar Pradesh Rs.6762 ($147) per MT.
Sorghum prices have shown a decline from last week Rs.7788 ($169) per MT to Rs.7521 ($164) per MT, a drop of almost 3.4%. The price is also down from last year by almost 7%. The drop is mainly attributed to increased arrivals in Gujarat, Maharahstra and rajasthan which has reduced the prices.
Pearl Millet (Bajra) prices are marginally higher than last weeks Rs.6205 ($135) per MT to Rs.6527 ($142) per MT, an increase of 5.2%. The prices are also higher than last years by 1.3%.
Barley prices dropped marginally from last weeks Rs.7291 ($159) per MT to Rs.6972 ($152) per MT, a drop of 4.3%, but the prices are still higher than last year’s price by 6.8%. The average prices in Rajasthan dropped by Rs.420 ($9) per MR over last week, while the prices in Uttar Pradesh are up by almost Rs.139 ($3) in the last one week.
In the US the prices of corn are higher than last week. July corn closed at $99.73 per MT, higher by $4.88 per MT over last week; Sept corn closed at $102.57, higher by $3.78 per MT; Dec corn $108.86 per MT, higher by $4.56 per MT. Analysts believe this increase in primarily due to the dry conditions prevailing in the US corn belt over the past one week.
Ethanol from Sugar, Molasses or Corn?
Ethanol manufactured from which feed / sugar stock is the most economical? This is a big question which has been asked many times prior and would continue to be asked. Under the current circumstances, when the spot prices of ethanol in the US market are as high as $4 per gallon (Rs.48.61 per liter), due to high demand, it may be most profitable to make ethanol from Sugar cane, Sugar Beets, Raw or refined sugar. But it may not be for long. The future prices of ethanol are likely to fall to $2.4 per gallon (Rs.29.16 per liter), which would make manufacture of ethanol from the sugar stocks uneconomical.
Based on the numbers available from USDA’s latest survey report on ethanol manufacture, it costs $1.03 - $1.05 per gallon (Rs.12.52 – Rs.12.76 per liter) to manufacture ethanol from corn in the US through wet and dry milling respectively. It costs $1.27 per gallon (Rs.15.43 per liter) to manufacture ethanol through Molasses. In Brazil the cost of production of ethanol from Sugar Cane is the cheapest at $0.81 per gallon (Rs.9.84 per liter), because the cost of feed stock (sugar cane is the cheapest in Brazil at $0.30 per gallon of ethanol produced (Rs.3.64 per liter of ethanol produced) and the processing costs is $0.51 per gallon of ethanol produced (Rs.6.20 per liter of ethanol produced), which is similar to the cost of processing when ethanol is produced through a dry milling process. The cost of feed stock varies.
For the detailed USDA study, please feel free to contact us and we shall be pleased to forward the details to you.
Bugs that contaminate your poultry meat supplies
Recent studies indicate that E Coli, which causes Diarrhea, Urinary Tract Infections and more severe infections in humans is getting resistant to antibiotics, especially fluoroquinolones, through chickens. Studies in US indicate that the microbes have mutated, become resistant and then transmitted to humans.
In such a situation is becomes necessary to take action and interrupt the transmission of the bacteria from animals to humans. This is possible by three ways, limit the use of prescription drugs in food animals, adopting hygienic food processing and distribution practices and improving kitchen hygiene.
Another bug which effects human health and is directly related to hygienic processing and handling is Campylobacter. Research conducted in New Zealand reveals that the country has the highest reported cases on Campylobacter, which gets into the food chain through raw fresh chicken, which has not been processed properly or processed under unhygienic conditions.
Campylobacter is found in the intestines of chickens and improper processing contaminates the meat. Its gets transmitted through infected feces and water. Even a drop of juice from contaminated poultry can cause Diarrhea.
The consumers must ensure that the chicken is packed properly and there are no leaking juices; before handling raw chicken, hands must be washed thoroughly and when storing in the refrigerator, chicken must be put in the bottom shelf, covered and the juices should not contaminate other food products. The chopping boards must be cleaned after use.
Another bug that is of importance and is a health hazard is Salmonella, which is also found is chicken, but there are other carriers of the bug, including humans who have had salmonella infection and may have been cured, but would remain carriers. Proper care by food handlers and hygiene in kitchen can prevent salmonella infections.
It is the duty of the government to check that the supply of poultry is safe and at the same time the companies need to make sure that consumers are made aware of hygienic processing and safe handling of poultry meat.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Jul 15, 2006
Saturday, July 08, 2006
Commodity prices stable, but availability poor; Biotech Planting and acceptance worldwide
Commodity prices stable, but availability poor
Last week government of India announced a package for the poultry sector that will provide 0.8 MMT of corn to the small poultry farmers who have been affected by the high corn prices. The Government will supply this corn to the small farmers through Directors of Animal Husbandry in the states and only small farmers will be eligible for this scheme, though no definition of a small farmer has been provided. The price of the corn will be Rs.4500 – Rs.5000 ($98 – 109) per MT. The government will also provide 60,000 tons of Grain Sorghum (Jowar) and 7,000 tons of Pearl Millet (Bajra).
With this announcement the price of corn in the market yards certainly came down a wee bit from Rs.6233 ($135.5) per MT in the week ending June 30 to Rs.6154 ($133.8) per MT in the week ending July 07, 2006. The prices had registered an increase in the last week of June and were up from Rs.5975 ($129.9) to Rs.6233 ($135.5) per MT at the market yard.
On a positive note government seems to have realized that high prices and lower availability of commodities particularly corn is an issue and something needs to be done about this.
Going by the values of imported corn, the prices are similar to local corn (delivered) close to ports area, where the demand is much higher and the supplies low. In the last week of June, the approximate delivered value of local corn was close to Rs.7250 ($157) per MT, especially in Gujarat and imported corn (if purchased in Panamax), could be delivered at Rs.Rs.7350 ($159.7) per MT. This is on the premise that the duty of 15% is not imposed on corn and the commodity will be delivered in bulk to the destinations close to ports.
The average prices of sorghum in the market yard was also up and averaged at Rs.7790 ($169.5) per MT, which is lower from last years price of Rs.8350 ($181.5), during the same period.
Price of Pearl Millet (Bajra) has been coming down steadily and currently it is priced at Rs.6200 ($134.9) per MT at the market yard on the average. Last year the price was Rs.6820 ($148.3) per MT during the same period.
Barley prices on the other hand are showing a rising trend and local prices are close to Rs.7290 ($158.5) per MT, mush higher than last years price of Rs.6545 ($142.3) per MT.
Prices in US for corn slid little lower this week. July delivery closed at $94.85 per MT against 95.64 last week. September delivery closed at $98.79 per MT, little lower than $99.58 per MT for last week. December corn closed at $104.30 per MT.
Biotech Planting and acceptance worldwide
In a recent report relaesed by USDA last week, it is estimated that over 60% of the 79.4 million acres have been planted with biotech traits in the US. The major users of the traits of South and North Dakota with 86% and 83% of area under biotech corn respectively. USDA also estimates that the total acreages this year are down by approximately 3% over last year.
Going by accepatnace level, China for the first time has approved import of 50,000 toms of Biotech corn, which is due to arrive in August 2006. Most analysts believe that China will be be a big importer, but it will be slow process. China has liberaloized the import process and currently private tarders and end users can import corn after receiving the permit, Earier all imports were through the state run COFCO. China has not issued any new export quotas since Feb 2006. Last reports available put the imports for this year at 2.5 MMT, must lower than last year’s 8.1 MMT.
Reports also indicate that Vietnam has also purchased a small consignment of 5000 MT of corn, which will be biotech, as there is no Identity Preservation (IP) system available and there is co-mingling of all the corn planted in US. IP is done only when specified for Value Enhanced Grains, like High Oil Corn (HOC), High Extractable Starch Corn (HESC), Hard Endosperm Corn (HEC) or Non GM Corn and is sold at a premium.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Jul 08, 2006
Last week government of India announced a package for the poultry sector that will provide 0.8 MMT of corn to the small poultry farmers who have been affected by the high corn prices. The Government will supply this corn to the small farmers through Directors of Animal Husbandry in the states and only small farmers will be eligible for this scheme, though no definition of a small farmer has been provided. The price of the corn will be Rs.4500 – Rs.5000 ($98 – 109) per MT. The government will also provide 60,000 tons of Grain Sorghum (Jowar) and 7,000 tons of Pearl Millet (Bajra).
With this announcement the price of corn in the market yards certainly came down a wee bit from Rs.6233 ($135.5) per MT in the week ending June 30 to Rs.6154 ($133.8) per MT in the week ending July 07, 2006. The prices had registered an increase in the last week of June and were up from Rs.5975 ($129.9) to Rs.6233 ($135.5) per MT at the market yard.
On a positive note government seems to have realized that high prices and lower availability of commodities particularly corn is an issue and something needs to be done about this.
Going by the values of imported corn, the prices are similar to local corn (delivered) close to ports area, where the demand is much higher and the supplies low. In the last week of June, the approximate delivered value of local corn was close to Rs.7250 ($157) per MT, especially in Gujarat and imported corn (if purchased in Panamax), could be delivered at Rs.Rs.7350 ($159.7) per MT. This is on the premise that the duty of 15% is not imposed on corn and the commodity will be delivered in bulk to the destinations close to ports.
The average prices of sorghum in the market yard was also up and averaged at Rs.7790 ($169.5) per MT, which is lower from last years price of Rs.8350 ($181.5), during the same period.
Price of Pearl Millet (Bajra) has been coming down steadily and currently it is priced at Rs.6200 ($134.9) per MT at the market yard on the average. Last year the price was Rs.6820 ($148.3) per MT during the same period.
Barley prices on the other hand are showing a rising trend and local prices are close to Rs.7290 ($158.5) per MT, mush higher than last years price of Rs.6545 ($142.3) per MT.
Prices in US for corn slid little lower this week. July delivery closed at $94.85 per MT against 95.64 last week. September delivery closed at $98.79 per MT, little lower than $99.58 per MT for last week. December corn closed at $104.30 per MT.
Biotech Planting and acceptance worldwide
In a recent report relaesed by USDA last week, it is estimated that over 60% of the 79.4 million acres have been planted with biotech traits in the US. The major users of the traits of South and North Dakota with 86% and 83% of area under biotech corn respectively. USDA also estimates that the total acreages this year are down by approximately 3% over last year.
Going by accepatnace level, China for the first time has approved import of 50,000 toms of Biotech corn, which is due to arrive in August 2006. Most analysts believe that China will be be a big importer, but it will be slow process. China has liberaloized the import process and currently private tarders and end users can import corn after receiving the permit, Earier all imports were through the state run COFCO. China has not issued any new export quotas since Feb 2006. Last reports available put the imports for this year at 2.5 MMT, must lower than last year’s 8.1 MMT.
Reports also indicate that Vietnam has also purchased a small consignment of 5000 MT of corn, which will be biotech, as there is no Identity Preservation (IP) system available and there is co-mingling of all the corn planted in US. IP is done only when specified for Value Enhanced Grains, like High Oil Corn (HOC), High Extractable Starch Corn (HESC), Hard Endosperm Corn (HEC) or Non GM Corn and is sold at a premium.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Jul 08, 2006
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