Maize Prices up on slow deliveries and high demand
Average maize prices in India suddenly shot up from last weeks Rs.6240 ($135.6) per MT to Rs.6350 ($138) per MT. The prices are likley to go up further as the most of the routes to production centres are cut of due to heavy rains in Central India in the last few days. Rains have also caused havoc in parts of Gujarat, Maharashtra, Andhra Pradesh and Orissa.
Prices of maize in major consumption and production centres like Andhra Pradesh are up from $ 122 to $ 130, Gujarat from $ 150 to $154, Karnataka $ 123 to $ 134, Tamil Nadu $ 135 to $ 137, Uttar Pradesh $ 135 to $ 141 (All prices at market yard in respective states). With less availability and higher prices, it is getting more and difficult for the end users to use corn and keep profit margins.
Prices of Pearl Millet slid down after a long time from $139.3 to $131.4 per MT, but it is still not feasible to use the grain against corn as the prices only 5% lower than corn.
Prices of Sorghum are again up from last weeks $156.4 to $161 per MT and are higher than last years price of $153.7 per MT at the same time. The prices are higher than maize by 15% and does not warrant a change in the poultry rations.
Barley prices are also showing a down trend and were at $149.5 per MT by the end of the week, lower than last week by almost $2.5 Per MT.
Prices in US on the other hand have softened and CBOT closed at $88.4 per MT for September delivery, much lower than last weeks close of $96.43. This is probably due to the new estimates from USDA on corn production, which is now estimated at 10.976 billion bushels (278 million metric tons), possibly the third largesy crop in US history.
India free of Bird Flu
Government of India in its most recent report to OIE dated Aug 11, 2006 sas stated that it is now free of bird flu. The document can be found on the weblink as under:
http://dahd.nic.in/flu/OIEfinal.doc
The document clearly indicates that since the last known outbreak of H5N1 which occurred on April 18, 2006 and the subsequent cleaning and culling operations which were completed on May 07, 2006, no new cases of Highly Pathogenic Avian Influenza have been deteced in the country.
The disease free status will help the industry to get back to it feet and the exports will finally start. It is likley to help in better placements of broilers and also layers in major layer belts from where exports of eggs to Middle east countries take place namely Tamil Nadu and Andhra Pdeash. Export of Hatching eggs, chicks to Middle East, Nepal and Bangladesh was also effected which will hopefully open their doors for Indian prodcuts.
Just prior to the bird flu episode in Feb 2006, Indian poultry processing plants had received clearances from Japanese govermnent to export poultry meat to Japan. The diasease free status will help in getting back to export of poultry meat to this market as well.
Even though India has declared itself free of Avian Influenza, the surveillance of the poultry belts should continue and awareness regading reporting the diseases must be created, which will help in nipping the crisis early if it happens again.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Aug 12, 2006
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