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
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