Coarse Grain Prices stable
During the week of festivities the market was not very high, arrivals were slow and producers, traders and buyers were busy with the festival. The market opened with a high note.
The average maize prices at the market yard was marginally up over last week at Rs.6000 per MT. The prices are higher than last year price at the same time by approximately 8.6%. The average prices in Karnataka have shown an upward trend and have moved up from Rs.5500 per MT last week to Rs.6100 per MT. The prices in Punjab, Rajasthan though have shown a downward trend.
Pearl Millet (Bajra) prices are down by about Rs.420 per MT over last week to Rs.5850 per MT, a down of 6.7%. Also the prics are lower than last year by 1.2%. The prices are also lower than maize by 2.4%.
Sorghum (Jowar) prices have also shown a downward trend and were down by Rs.450 per MT at Rs.6400 per Mt over last week, a drop of 6.6%. The prices though are higher than last year by 4%. As against maize, the prices are higher by 7.5%.
Barley prices have remained stable at about Rs.8000 per MT levels at the market yard, but the arrivals are small. Delivered prices are close to Rs.9000 – 9200 per MT. The prices are similar to last year. The Minimum Support Price for barley has been increased from Rs.5500 per MT to Rs.5650 per MT.
There are reports suggesting Indian corn is competitive in the South East Market and some cargoes have been sold at $160 FOB (Chennai). With US prices touching over $150 FOB, the buyers will look for the nearest supplier. Exports being open from India, there is a likelihood of some boatloads will find buyers in this area.
Market sentiment suggests a price increase in the coming months even at the time when harvest would just be over. In addition a swing toward wheat in some of the maize belts cannot be ruled out, if the Minimum Support Price (MSP for wheat is increased.
Corn closed higher on Friday at $3.32 per bushel ($130.83 per MT) an increase of almost $7.7 per MT over last week’s close. FOB values (US Gulf) are at a high of $155 – 156 per MT.
Corn prices are likely to remain high in US
Many analysts now believe that the corn prices in US will remain high. The prices touched a high of $124.77 per MT at CBOT on Oct 13, 2006 and since then have not come down. Corn prices closed at $130.83 on Oct 27, 2006.
Despite a crop size of almost 277 MMT, the third largest U.S. crop the prices have gone up sharply. Market analysts believe that this is mainly due to
a. Declining world wheat stocks because of Australian drought.
b. Lower ending stocks estimates from 30.98 MMT (Sept 2006) to 24.36 MMT in Nov 2006.
There is a general concern that there would be a need to increase the corn plantings substantially in 2007 to cover the demand for ethanol. As reports suggest 53% of the corn has been harvested.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Oct 28, 2006
Saturday, October 28, 2006
Friday, October 20, 2006
Coarse Grain Prices remain high; International Biotechnology Information Conference 2006 in the US
Coarse Grain Prices remain high
As we enter the festive season, Diwali and Eid and people get busy with their purchases etc, the end users of coarse cereals will be a worried lot. Even though harvest of coarse grain is half way through, prices at the market yard are still ruling high.
The average maize price at the market yard was marginally down by 0.5% over last week at Rs.5975 per MT, and the price is still higher than last year’s price of Rs.5780 per MT, by 3.5%. As weather turns good, marriage season starts, poultry farmers are likely to put in more birds, turning the pressure on maize.
Pearl Millet (Bajra) prices are marginally up by 0.6% over last week at Rs.6270 per MT. The price is higher over last year’s price of Rs.6075 per MT by 3.2%. The price of Pearl Millet is also higher than maize by approximately 5%.
Sorghum (Jowar) prices also moved up marginally by 0.5% to Rs.6900 per MT at the Market Yard. The prices are also higher than last year’s price of Rs.6250 per MT by 10.3%. As against Maize, the prices are higher by 15.4%, making maize a grain of choice for the poultry farmers, unless some low quality sorghum is available at a cheaper price.
Barley prices moves up substantially this week, up by 7.3% over last week to Rs.8150 per MT. Last year too the prices were at the same level.
With the maize prices still lower than sorghum and pearl millet, pressure on maize will be high. With production in Khariff limited to 11.00 MMT as per GOI estimate and demand higher, prices are likely to remain high.
Prices of Maize at CBOT moved up slightly and closed at $124.37 per MT on Thursday. FOB value New Orleans (US Gulf) would be close to $145 – 146 per MT range.
International Biotechnology Information Conference 2006 in the US
The 5th International Biotechnology Information Conference sponsored by U.S. Grains Council, Iowa Corn Promotion Board, Nebraska Corn Board and National Corn Growers Association in underway in the US. About 70 policy makers from 20 countries are taking part in 5 day event to gain insight into the agricultural commodity chain in Iowa and Nebraska while also learning the practice of risk assessment, risk management, risk communication and decision making.
Over the last couple of years, the council though its partners has organized events in US and have produced many publications on various aspects of biotechnology. One such publication produced with National Corn Growers Association is the Biotechnology Reference Guide which contains important information on the science of biotechnology in layman terms. The guide can be down loaded from NGCA website and is available on the link given below
http://www.ncga.com/biotechnology/pdfs/ReferenceGuide/guide.pdf
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Oct 20, 2006
As we enter the festive season, Diwali and Eid and people get busy with their purchases etc, the end users of coarse cereals will be a worried lot. Even though harvest of coarse grain is half way through, prices at the market yard are still ruling high.
The average maize price at the market yard was marginally down by 0.5% over last week at Rs.5975 per MT, and the price is still higher than last year’s price of Rs.5780 per MT, by 3.5%. As weather turns good, marriage season starts, poultry farmers are likely to put in more birds, turning the pressure on maize.
Pearl Millet (Bajra) prices are marginally up by 0.6% over last week at Rs.6270 per MT. The price is higher over last year’s price of Rs.6075 per MT by 3.2%. The price of Pearl Millet is also higher than maize by approximately 5%.
Sorghum (Jowar) prices also moved up marginally by 0.5% to Rs.6900 per MT at the Market Yard. The prices are also higher than last year’s price of Rs.6250 per MT by 10.3%. As against Maize, the prices are higher by 15.4%, making maize a grain of choice for the poultry farmers, unless some low quality sorghum is available at a cheaper price.
Barley prices moves up substantially this week, up by 7.3% over last week to Rs.8150 per MT. Last year too the prices were at the same level.
With the maize prices still lower than sorghum and pearl millet, pressure on maize will be high. With production in Khariff limited to 11.00 MMT as per GOI estimate and demand higher, prices are likely to remain high.
Prices of Maize at CBOT moved up slightly and closed at $124.37 per MT on Thursday. FOB value New Orleans (US Gulf) would be close to $145 – 146 per MT range.
International Biotechnology Information Conference 2006 in the US
The 5th International Biotechnology Information Conference sponsored by U.S. Grains Council, Iowa Corn Promotion Board, Nebraska Corn Board and National Corn Growers Association in underway in the US. About 70 policy makers from 20 countries are taking part in 5 day event to gain insight into the agricultural commodity chain in Iowa and Nebraska while also learning the practice of risk assessment, risk management, risk communication and decision making.
Over the last couple of years, the council though its partners has organized events in US and have produced many publications on various aspects of biotechnology. One such publication produced with National Corn Growers Association is the Biotechnology Reference Guide which contains important information on the science of biotechnology in layman terms. The guide can be down loaded from NGCA website and is available on the link given below
http://www.ncga.com/biotechnology/pdfs/ReferenceGuide/guide.pdf
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Oct 20, 2006
Saturday, October 14, 2006
Corn prices stabilize; Recommendation from USGC Poultry Marketing Seminar
Corn prices stabilize
The average corn prices in the market yard across the country stabilized at Rs.6000 per ton, but the prices are higher than last year by 4.2% at the market yard. The average delivered price is about Rs.7200 per MT. In Punjab even with the new crop the price is about Rs.7300 per MT delivered, while in parts of Andhra Pradesh prices are at Rs.6300 – Rs.6500 per MT delivered.
Pearl Millet (Bajra), prices have come down from last week’s price of Rs.6700 per MT to Rs.6200 per MT this week, drop of 7.5%, but the prices are higher than last year’s value by 2.4%. In comparison to corn, the prices are still higher by 3.8%.
Sorghum (Jowar) prices have also come down from Rs.7100 per MT to Rs.6800 – Rs.6900 per MT range, drop of 2.8% at the market yard. The prices are also much lower than last years price of Rs.7800 at this time of the year. As against corn, the pieces are higher than corn by 14.3%, making it impossible for its use in poultry ration as replacing corn.
Barley prices have risen this week to Rs.7500 – Rs.7600 per MT range. Delivered prices are ranging from Rs.8300 – Rs.8500 per MT. As per reports available the prices are likely to remain high and small quantities are coming into the market and the trade anticipates a shortage of crop.
The price of corn in US has climbed yet again and CBOT closed at $123.75 per MT for Dec delivery. A year ago, second week of Oct 2005, the a ton of corn at CBOT traded at $80.2 per MT, a month back (Sept 2006) the price was $95.1 per MT.
As per the latest WASDE report, released on Oct 12, 2006, the world production of corn in 2006-07 is expected to be 689.14 MMT, down from 2005-06 estimated production of 692.74 MMT. The production in US is expected to be down to 277 MMT and the total harvested acres are also expected to be down to 71 Million acres. The average productivity is 3.90 tons/acre.
Production and export surplus in other countries is as under, Argentina, 17.5 MMT, with an exportable surplus of 11.5 MMT, Brazil, 40.5 MMT with an exportable surplus of 1.5 MMT and China, 141 MMT with an exportable surplus of 4.0 MMT.
The 2006/07, marketing year average price is raised to $2.40 to $2.80 per bushel ($94.46 – 110.21 per MT), reflecting the tight stocks and higher demand.
Recommendation from USGC Poultry Marketing Seminar
While on a visit to India Dr.James Denton and Dr.John Marcy in Sept 2006, apart for conducting seminars and one to one meetings with the poultry processors, also carried out a bench marking exercise of the chicken and chicken products being sold in India. Some of the critical observations and recommendations made by them are listed below.
Observations
1. Indian poultry processors demonstrated a wide array of products with marketing and packaging systems ranging from excellent (one processor) to very poor dependent on brand. The retail markets also demonstrated a wide array of product display locations and formats, also ranging from excellent to very poor. This lack of shelf space and priority display location was evident every where.
2. Cold chain management is a serious concern with distribution not controlled by the processor. This includes mismanagement of product by the retailer.
3. There is a lack of relationship between poultry processors and the retailer with regard to product display location and inventory management & between the retailer and the Indian consumers with regard to communication and consumer feedback.
4. The lack of a government inspection system (covering only frozen chicken) also results in a lower acceptance of mechanically processed chicken.
Recommendations
1. The government of India must develop a single poultry inspection system to assure that safe and wholesome product is provided to the Indian consumer. A proper inspection system, wherein all chicken products (chilled or frozen) are covered and receive a certification from the federal inspector would be trusted by the consumer. Random checks on plant through third party testing can be mandated.
2. Industry needs to work together on formulating standards which can be used by the trade organizations and provided to its members.
3. Poultry processors need to develop mechanisms to interface directly with consumers of poultry products. The absolute minimum should be a toll free 800-number placed on every package of product offered in the retail market. This will enable the processor to hear directly from the consumer and not through the filter of a retailer.
4. Individual poultry processors must develop improved relationships with retail market management personnel. One of the key factors which needs improvement is product placement in the retail store in priority locations rather than in obscure locations.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Oct 14, 2006
The average corn prices in the market yard across the country stabilized at Rs.6000 per ton, but the prices are higher than last year by 4.2% at the market yard. The average delivered price is about Rs.7200 per MT. In Punjab even with the new crop the price is about Rs.7300 per MT delivered, while in parts of Andhra Pradesh prices are at Rs.6300 – Rs.6500 per MT delivered.
Pearl Millet (Bajra), prices have come down from last week’s price of Rs.6700 per MT to Rs.6200 per MT this week, drop of 7.5%, but the prices are higher than last year’s value by 2.4%. In comparison to corn, the prices are still higher by 3.8%.
Sorghum (Jowar) prices have also come down from Rs.7100 per MT to Rs.6800 – Rs.6900 per MT range, drop of 2.8% at the market yard. The prices are also much lower than last years price of Rs.7800 at this time of the year. As against corn, the pieces are higher than corn by 14.3%, making it impossible for its use in poultry ration as replacing corn.
Barley prices have risen this week to Rs.7500 – Rs.7600 per MT range. Delivered prices are ranging from Rs.8300 – Rs.8500 per MT. As per reports available the prices are likely to remain high and small quantities are coming into the market and the trade anticipates a shortage of crop.
The price of corn in US has climbed yet again and CBOT closed at $123.75 per MT for Dec delivery. A year ago, second week of Oct 2005, the a ton of corn at CBOT traded at $80.2 per MT, a month back (Sept 2006) the price was $95.1 per MT.
As per the latest WASDE report, released on Oct 12, 2006, the world production of corn in 2006-07 is expected to be 689.14 MMT, down from 2005-06 estimated production of 692.74 MMT. The production in US is expected to be down to 277 MMT and the total harvested acres are also expected to be down to 71 Million acres. The average productivity is 3.90 tons/acre.
Production and export surplus in other countries is as under, Argentina, 17.5 MMT, with an exportable surplus of 11.5 MMT, Brazil, 40.5 MMT with an exportable surplus of 1.5 MMT and China, 141 MMT with an exportable surplus of 4.0 MMT.
The 2006/07, marketing year average price is raised to $2.40 to $2.80 per bushel ($94.46 – 110.21 per MT), reflecting the tight stocks and higher demand.
Recommendation from USGC Poultry Marketing Seminar
While on a visit to India Dr.James Denton and Dr.John Marcy in Sept 2006, apart for conducting seminars and one to one meetings with the poultry processors, also carried out a bench marking exercise of the chicken and chicken products being sold in India. Some of the critical observations and recommendations made by them are listed below.
Observations
1. Indian poultry processors demonstrated a wide array of products with marketing and packaging systems ranging from excellent (one processor) to very poor dependent on brand. The retail markets also demonstrated a wide array of product display locations and formats, also ranging from excellent to very poor. This lack of shelf space and priority display location was evident every where.
2. Cold chain management is a serious concern with distribution not controlled by the processor. This includes mismanagement of product by the retailer.
3. There is a lack of relationship between poultry processors and the retailer with regard to product display location and inventory management & between the retailer and the Indian consumers with regard to communication and consumer feedback.
4. The lack of a government inspection system (covering only frozen chicken) also results in a lower acceptance of mechanically processed chicken.
Recommendations
1. The government of India must develop a single poultry inspection system to assure that safe and wholesome product is provided to the Indian consumer. A proper inspection system, wherein all chicken products (chilled or frozen) are covered and receive a certification from the federal inspector would be trusted by the consumer. Random checks on plant through third party testing can be mandated.
2. Industry needs to work together on formulating standards which can be used by the trade organizations and provided to its members.
3. Poultry processors need to develop mechanisms to interface directly with consumers of poultry products. The absolute minimum should be a toll free 800-number placed on every package of product offered in the retail market. This will enable the processor to hear directly from the consumer and not through the filter of a retailer.
4. Individual poultry processors must develop improved relationships with retail market management personnel. One of the key factors which needs improvement is product placement in the retail store in priority locations rather than in obscure locations.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Oct 14, 2006
Sunday, October 08, 2006
Corn down, all other commodity prices jump; Importance of Biotech - all over the world
Corn down, all other commodity prices jump
Since last week corn prices all over the country have shown a decline in the markets, Average market yard price is down from Rs.6500 per MT to Rs.6000 per MT, a decline of approximately 7.7% in one week, but the prices are still higher than last years price of Rs.5690 per MT, about 5.4% higher than last year.
Prices of other commodities have shown an upward trend since last week and Pearl millet prices are higher by about 9.5%, reaching Rs.6790 per MT. The prices are also higher than last year by 15.3%. As compared to corn, the prices are higher by 13%.
Sorghum prices are stable, but are higher than last years price by 10%. As compared to corn the prices are higher by 19%.
Barley prices in the market yard have shown an upward trend and reached a level of Rs.7300 – Rs.7500 per MT. The delivered prices have gone up to Rs.8800 per MT.
It is likely that the prices will remain higher and pressure on corn will remain as more chicken placements is happening for the coming festival season and the temperature would be conducive for the growth. With other grain prices also higher and farmers/feed manufacturers unable to use these, the pressure will remain on corn.
In China, USGC officers completed the crop tour and the production estimates are close to 139.4 MMT, lower than the official estimates by 2.6 MMT. The low production is attributed to drought and insect damage. The consumption of corn is rising due to the increasing demand of meat, milk and eggs and increase in urbanization, buying power.
Prices of Corn in US on CBOT moves a little higher than last week’s $103 per MT to $106.67 per Mt for Dec 2006 deliveries. The price for March 2007 delivery was much higher at $ 111.78 per MT.
Importance of Biotech - all over the world
It has just become necessary to look beyond sustainable agriculture production to meet the needs of the people. As the global grain stocks plummet and demand grows, the prices are likely to remain firm. As per the ERS, USDA report, the prices in for the US farmer will be $85 – 100 per MT for the year 2006-07. Last year the average price was $78.32 per MT.
As the demand grows, productions get affected due to various reasons, it is being felt that Biotech products would be the key that will help in overcoming the demand and meet the supply of the commodities.
In its final report on Sept 29, the World Trade Organization (WTO) has found that the European Union’s has failed to act on biotechnology approvals.
This report upholds the claim by the United States, Argentina and Canada that the EU’s failure to act on biotech applications constitutes an unjustifiable impediment to trade. In addition, the report requires EU member states to eliminate national bans on products already approved by the EU. France, Germany, Luxembourg, Austria, Italy and Greece have each banned EU-approved biotech products, but have not provided sufficient scientific evidence of risks to either people or the environment.
As Australia grapples with the worst drought of the century,, the Australian states have been told to lift moratorium on genetically modified crops. Reports indicate that of states of Victoria and New South Wales (NSW) moved ahead and allowed GM crop cultivation, other states would also move ahead. There is only 5 – 10% chance that Australia will receive rain and it the drought persists, GM technology would be a boon.
Experience in other parts of the world, wherever the technology has been used, has showed GM crops offer cost efficiencies for producers as well as environmental benefits. It has now a known fact that India in No. 2 in Cotton production, thanks to the GM technology and the introduction on Bt Cotton seed which has helped the farmers in India.
Companies like Monsanto are working against time to bring out drought tolerant GM products including corn, which will have increase upto 8 – 10% in dry conditions
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Oct 7, 2006
Since last week corn prices all over the country have shown a decline in the markets, Average market yard price is down from Rs.6500 per MT to Rs.6000 per MT, a decline of approximately 7.7% in one week, but the prices are still higher than last years price of Rs.5690 per MT, about 5.4% higher than last year.
Prices of other commodities have shown an upward trend since last week and Pearl millet prices are higher by about 9.5%, reaching Rs.6790 per MT. The prices are also higher than last year by 15.3%. As compared to corn, the prices are higher by 13%.
Sorghum prices are stable, but are higher than last years price by 10%. As compared to corn the prices are higher by 19%.
Barley prices in the market yard have shown an upward trend and reached a level of Rs.7300 – Rs.7500 per MT. The delivered prices have gone up to Rs.8800 per MT.
It is likely that the prices will remain higher and pressure on corn will remain as more chicken placements is happening for the coming festival season and the temperature would be conducive for the growth. With other grain prices also higher and farmers/feed manufacturers unable to use these, the pressure will remain on corn.
In China, USGC officers completed the crop tour and the production estimates are close to 139.4 MMT, lower than the official estimates by 2.6 MMT. The low production is attributed to drought and insect damage. The consumption of corn is rising due to the increasing demand of meat, milk and eggs and increase in urbanization, buying power.
Prices of Corn in US on CBOT moves a little higher than last week’s $103 per MT to $106.67 per Mt for Dec 2006 deliveries. The price for March 2007 delivery was much higher at $ 111.78 per MT.
Importance of Biotech - all over the world
It has just become necessary to look beyond sustainable agriculture production to meet the needs of the people. As the global grain stocks plummet and demand grows, the prices are likely to remain firm. As per the ERS, USDA report, the prices in for the US farmer will be $85 – 100 per MT for the year 2006-07. Last year the average price was $78.32 per MT.
As the demand grows, productions get affected due to various reasons, it is being felt that Biotech products would be the key that will help in overcoming the demand and meet the supply of the commodities.
In its final report on Sept 29, the World Trade Organization (WTO) has found that the European Union’s has failed to act on biotechnology approvals.
This report upholds the claim by the United States, Argentina and Canada that the EU’s failure to act on biotech applications constitutes an unjustifiable impediment to trade. In addition, the report requires EU member states to eliminate national bans on products already approved by the EU. France, Germany, Luxembourg, Austria, Italy and Greece have each banned EU-approved biotech products, but have not provided sufficient scientific evidence of risks to either people or the environment.
As Australia grapples with the worst drought of the century,, the Australian states have been told to lift moratorium on genetically modified crops. Reports indicate that of states of Victoria and New South Wales (NSW) moved ahead and allowed GM crop cultivation, other states would also move ahead. There is only 5 – 10% chance that Australia will receive rain and it the drought persists, GM technology would be a boon.
Experience in other parts of the world, wherever the technology has been used, has showed GM crops offer cost efficiencies for producers as well as environmental benefits. It has now a known fact that India in No. 2 in Cotton production, thanks to the GM technology and the introduction on Bt Cotton seed which has helped the farmers in India.
Companies like Monsanto are working against time to bring out drought tolerant GM products including corn, which will have increase upto 8 – 10% in dry conditions
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Oct 7, 2006
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