Maize Prices move up again, production estimates down
Local maize prices in India moved up in India in the week (Nov 27 – Dec 2) to Rs.6700 – Rs.6900 per MT range at the market yard. The delivered prices were close to Rs.8500 – 8700 per MT range. The prices were higher by about 2% over last week, and about 13.6% higher over last year at market yard values.
The new estimate for maize production put out by Government of India for the year 2006-07 is 12.41 MMT, much lower than last year. The demand of maize for the year 2006-07 is estimated at 14 MMT, thus the deficit will be close to 1.6 MMT. If the exports of 0.7 MMT to Bangladesh, Sri Lanka and Nepal are accounted, the deficit will be close to 2.1 MMT. The prices will be much higher than they are now between March – Sept 2007 as during the time, no new corn will be coming in the market and the new crop will only arrive in the market in October 2007.
Pearl Millet (Bajra), prices have reached Rs.7500 – 7700 per MT at market yard, which are about 2.8% lower than last week., but the prices are still higher than maize by 11.5%.
Sorghum (Jowar) prices have also reached Rs.7500 per MT levels at market yard and are 1.8% lower over last week. The prices are higher than maize by 12.2%.
Barley prices, whicj were down in the last week, jumped to Rs.8900 per tons level at the market yard, gaining almost 17% over last week. The delivered prices are close to Rs.11000 per MT level. The prices are higher than last year by almost 5%. The demand for Barley has increased considerably and the production is estimated toi be down, which is leading to higher prices.
The prices of corn on CBOT on Dec 1, 2006 was $3.74 per Bushel ($147.20 per MT), and the FOB value (US Gulf) was close to $172 per MT for December delivery. The dry bulk freight prices for corn to china were $46 – 47 per MT. Freight cost from Brazil to China was reported at $50 per MT and there are delays in deliveries through Panama Canal.
China plans to phase out Live Poultry Markets
Reports available indicate that China has started taking steps to phase out live poultry markets. The pashing out of live poultry markets is a part of plan to fight bird flu more effectively.
The document, released by the State Council, the nation's cabinet, has called for a complete ban on any new live poultry markets and urges that the current live markets must be moved out of high density population areas.
In China, as elsewhere throughout Asia, (including India, Pakistan, Vietnam, Bangladesh etc) the live markets are popular as locals prefer to buy the freshest meat, however the live birds are regarded as dangerous incubators of bird flu and the unhygienic conditions in which the birds are slaughters could be responsible on other diseases.
It is important that the poultry markets are regulated and the systems are implemented which will strengthen the market supervision. These can be effective measures in controlling the occurrence and spread of the bird flu.
As per the document, the central government intends to restrict the number of live poultry markets and gradually move them away from urban areas in large and medium-size cities and in a few years completely ban them. The State Council has also urged local governments to regulate wholesale chicken markets and ensure that state-regulated sanitation standards were being implemented. The document also suggests that the live poultry trading areas should be separated from other farming products in the marketplace in both rural and urban areas, and separate exits and entrances should be established to the bird markets.
It is a step forward, and it is necessary that the state governments and the municipalities in India to take a lead and enact laws which will help in regulating live markets and take a step towards a processing industry which will help the industry to grow further.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Dec 5, 2006
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