May the setting sun of 2006 take along with it all sorrows and displeasures and may the bright New Year dawn bring into your life endless happiness and prosperity.
Have a great year ahead!!
What a year 2006 was and expectations from 2007 ?
As the maize users usher in a new year, there are many who would keep their fingers crossed and hope that the year 2006 does not repeat itself in any manner. Poultry sector would like to forget the year 2006, specially after what happened in Feb 2006 (Avian Influenza), direct losses and indirect losses amounted to over 10,000 crores ($2.2 billion). It was a major setback for the poultry sector. As the sector started on the comeback trail, demand of chicken and eggs was normal, chicken placements were back to normal, high maize prices affected the profitability of the farmers yet again. Though the price of end products (chicken and eggs) was up, but so was the cost of production.
In the year 2007, at least in the first 10 months, it is likely that the maize availability would be poor, prices high, until the new crop arrives in October 2007. A higher production may not grant solace as 2007 would be the year of Al Nino, which would also mean a lower monsoon.
In addition, the demand from the starch sector will increase due to the boom in retail sector. It would be the food sector, which many believe will give a boost to the starch sector and the PULL EFFECT from the retail sector for packaged, processed foods.
The PULL EFFECT from the retail sector will also help the poultry sector and processed poultry will gain much wider acceptance and audience. The recoveries to the integrators would be higher and in all likelihood India would see major investments to set up processing plans and supply chain systems.
Maize prices move up
Maize prices are slightly up from last week by Rs.100 per MT, averaging Rs.6800 – 6900 per MT at the market yard. The prices are higher over last year by almost 14%. Reports from the market also indicate that the prices are likely to remain higher in the coming months, until the new rabi crop arrives in the market in Feb/March 2007 in some markets (Bihar, Andhra Pradesh, Maharsahtra). The prices are likely to soften, but for a short period only. Rabi crop provides about 15-17% of the total maize production of India and even a small increase in land coverage will not be able to fulfil the deficit already in the market.
Pearl Millet prices are up over last week by Rs.100 per MT, reaching a level of Rs.7400 – 7500 per MT. As against maize, the prices are higher by about 9%.
Sorghum (Jowar) prices remained stable at Rs.7600 per MT at the market yard, but are higher than the maize prices by almost 12%.
Barley prices moved up by almost Rs.700 per MT at the market yard, to reach Rs.7700 per MT (average), an increase of almost 9% over last week. The prices of barley are also lower than last year by 11.2%.
In the world market maize prices are likely to remain high, especially due to the ethanol boom in US. There are about 111 ethanol plants in the US producing almost 19.5 billion litres ethanol in 2006. There are another 70 plants that will be online in 2007. Currently 20% of the maize crop is converted to ethanol, which is likely to rise to 25% in 2007. The ending stocks of maize in the US in 2006 were 25 MMT, and are likely to be 20.3 MMT in 2007, which will further fuel the prices. This is despite a higher production of 306 MMT estimated by many analysts. The average maize price at the farm in 2006 was $120 per MT as against $78.72 in 2005. The average farm gate maize price in 2007 is expected to be $128 per MT.
Prices at CBOT moved a bit higher and March 2007 delivery closed at $153.6 per MT, May 2007 delivery $156.81 per MT.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Dec 30, 2006
Saturday, December 30, 2006
Saturday, December 23, 2006
Average maize prices remain stable; Pressure on GOI to allow duty free imports
We wish you a Merry Christmas and a Happy, Healthy and Fun 2007!
May the Year 2007 be synonymous of Joy, Happiness, Good Health and Prosperity for you and your family.
Average maize prices remain stable
Average maize prices at the market yard have remained stable at Rs.6700 – 6800 per MT range. The prices though are higher than last year by almost 13%. As one goes by the varieties, the price of yellow maize, which is more in demand by the poultry and the starch sector has gone up drastically to Rs.7300 per MT at the market yard. Prices of local and the red varieties has though come down. Within the states, the highest prices of maize are recorded in Rajasthan at Rs.8000 per MT, followed by Gujarat, Rs.7600 per MT; Uttar Pradesh, Rs.7300 per MT & Tamil Nadu and Maharashtra at Rs.7000 per MT.
Pearl Millet (Bajra) prices have moved up by 2.5% over last week, reaching Rs.7300 – 7400 per MT range. The prices are the highest in Gujarat at Rs.8200 per MT. The average prices are still higher than maize by 9%.
Sorghum (Jowar) prices have also shown a rising trend this week and are up by 3% over last week, reaching Rs.7700 – 7800 per MT at the market yard. The prices in Gujarat were the highest at Rs.10000 per MT, while in Rajasthan the were at Rs.7400 per MT at the market yard. The average prices are still higher than maize by 13.5%.
Barley prices have shown a decline of over 13% over last week, reaching levels of Rs.7000 – 7200 per MT at the market yard. Prices in Gujarat though have gine up to Rs.8500 per MT levels, while in UP the prices have declined to Rs.6900 per MT level at the market yard.
The prices of all the commodities are the highest in Gujarat and have gone up over the last week.
The price of corn on CBOT was higher than last week, up by almost $6 per MT. CBOT closed at $151.14 per MT. The prices were higher on the premise that China may not be able to supply the world with the promised corn as it is expected to consume 143 MMT of corn, up by 1 MMT over the last report.
Pressure on GOI to allow duty free imports
At the recent press conference on Dec 20, 2006, Shri.Sharad Pawar, Minister for Agriculture made a mention regarding allowing maize imports at Zero Duty for the benefit of the poultry sector. He said that the Government is strongly considering the case as requested by the poultry sector.
The prices of maize have risen sharply over the last few months. Looking at the year gone by, the monthly average price of maize at the market yard in Dec 04 was Rs.5240 per MT, which in Dec 05 rose to Rs.5817 an increase on 11%. In Jan 06 too, the prices were higher than Jan 05 by 11% and in the period April – July 2006 were at levels similar to April – July 2006. In August 2006 the prices started to rise once again and were higher by 9% over Aug 2005. In Oct 2006 the prices were higher over Oct 2005 by 5.36%, this was at a time when the new crop came into the market.
In Nov 2006 the prices were higher than Nov 2005 levels by 12.17% and till date (3 weeks of Dec 2006), the prices are higher by 16.47% from Dec 2005 level. From Oct 2006 to Dec 2006 the prices have risen from a level of Rs.6000 per Mt to Rs.6800 per MT.
In the last quarter of 2005 (Oct 2005 – Dec 2005) the price of maize rose from Rs.5700 to Rs.5817, a mere 2% increase. In the last quarter of 2006 (Oct 2006 – Dec 2006), the prices rose from Rs.6000 – Rs.6775 per MT at the market yard, a 12.9% increase.
Government of India has also allowed import of wheat on duty free terms until Feb 2007. Import of pulses has also been allowed at duty free until July 31, 2007. This is to keep the prices of essential commodities down.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Dec 23, 2006
May the Year 2007 be synonymous of Joy, Happiness, Good Health and Prosperity for you and your family.
Average maize prices remain stable
Average maize prices at the market yard have remained stable at Rs.6700 – 6800 per MT range. The prices though are higher than last year by almost 13%. As one goes by the varieties, the price of yellow maize, which is more in demand by the poultry and the starch sector has gone up drastically to Rs.7300 per MT at the market yard. Prices of local and the red varieties has though come down. Within the states, the highest prices of maize are recorded in Rajasthan at Rs.8000 per MT, followed by Gujarat, Rs.7600 per MT; Uttar Pradesh, Rs.7300 per MT & Tamil Nadu and Maharashtra at Rs.7000 per MT.
Pearl Millet (Bajra) prices have moved up by 2.5% over last week, reaching Rs.7300 – 7400 per MT range. The prices are the highest in Gujarat at Rs.8200 per MT. The average prices are still higher than maize by 9%.
Sorghum (Jowar) prices have also shown a rising trend this week and are up by 3% over last week, reaching Rs.7700 – 7800 per MT at the market yard. The prices in Gujarat were the highest at Rs.10000 per MT, while in Rajasthan the were at Rs.7400 per MT at the market yard. The average prices are still higher than maize by 13.5%.
Barley prices have shown a decline of over 13% over last week, reaching levels of Rs.7000 – 7200 per MT at the market yard. Prices in Gujarat though have gine up to Rs.8500 per MT levels, while in UP the prices have declined to Rs.6900 per MT level at the market yard.
The prices of all the commodities are the highest in Gujarat and have gone up over the last week.
The price of corn on CBOT was higher than last week, up by almost $6 per MT. CBOT closed at $151.14 per MT. The prices were higher on the premise that China may not be able to supply the world with the promised corn as it is expected to consume 143 MMT of corn, up by 1 MMT over the last report.
Pressure on GOI to allow duty free imports
At the recent press conference on Dec 20, 2006, Shri.Sharad Pawar, Minister for Agriculture made a mention regarding allowing maize imports at Zero Duty for the benefit of the poultry sector. He said that the Government is strongly considering the case as requested by the poultry sector.
The prices of maize have risen sharply over the last few months. Looking at the year gone by, the monthly average price of maize at the market yard in Dec 04 was Rs.5240 per MT, which in Dec 05 rose to Rs.5817 an increase on 11%. In Jan 06 too, the prices were higher than Jan 05 by 11% and in the period April – July 2006 were at levels similar to April – July 2006. In August 2006 the prices started to rise once again and were higher by 9% over Aug 2005. In Oct 2006 the prices were higher over Oct 2005 by 5.36%, this was at a time when the new crop came into the market.
In Nov 2006 the prices were higher than Nov 2005 levels by 12.17% and till date (3 weeks of Dec 2006), the prices are higher by 16.47% from Dec 2005 level. From Oct 2006 to Dec 2006 the prices have risen from a level of Rs.6000 per Mt to Rs.6800 per MT.
In the last quarter of 2005 (Oct 2005 – Dec 2005) the price of maize rose from Rs.5700 to Rs.5817, a mere 2% increase. In the last quarter of 2006 (Oct 2006 – Dec 2006), the prices rose from Rs.6000 – Rs.6775 per MT at the market yard, a 12.9% increase.
Government of India has also allowed import of wheat on duty free terms until Feb 2007. Import of pulses has also been allowed at duty free until July 31, 2007. This is to keep the prices of essential commodities down.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Dec 23, 2006
Saturday, December 16, 2006
Maize Prices are stable, but availability an issue; Animal feeding takes a hit with high grain prices
Maize Prices are stable, but availability an issue
Maize prices at the Market yard are slightly down over last week, at Rs.6700 per MT, a mere 2.7% drop over last week market yard prices. The average delivery prices remain in the range of Rs.8200 – 8300 per MT. The price drop is mostly in North India due to winter and drop in placement of chicks in the area. Maize prices at this time of the year are running at 22% higher that last year. At this time last year, the average delivered prices were Rs.6750 per MT.
Pearl Millet (Bajra) prices also cam down by about 6% this week, reaching a leven of Rs.7150 per MT, which are still higher than maize prices by 6.5%.
Sorghum (Jowar) prices also crashed at the market yard by 11% over last week, reaching a level of Rs.7400 per MT at the market yard, which is still higher than the maize price by 10%.
Barley prices remained stable at the Rs.8100 per MT at the market yard, which is similar to last year prices. The demand of barley as raw material for malt is going up. Malt is used to manufacture beverages and also beer. The two products are extreme in the middle income group, with malt beverages aimed at children for health and wellness, while beer is aimed at the younger generation as a fun drink.
The drop in prices is merely a correction and the prices are likely to go up again as the demand of maize in west, south and east increases, In addition the demand will pickup in January in North India as the placements of chicks for Holi (festival of colors) are likely to increase.
On the international front, China may not be able to fulfil its export obligations on maize. Reports indicate that the exporters had permits/contracts for 4.18 MMT, which was supposed to be completed by end of the year or early 2007. The total exports from China are 2.37 MMT and the domestic prices have steadily risen, due to increase in demand. China has also imported 60,000 tons on maize this year and has a quota of 7.2 MMT tons as per WTO rules.
The prices in US are up this week again. At CBOT corn for March 07 delivery was 145.2 per MT.
Animal feeding takes a hit with high grain prices
High grain prices -- particularly for wheat and corn – due to poor crop production in major production areas are likely to have an impact on the animal feeding in some parts of the world. The latest report from Food and Agriculture Organization (FAO), indicates that as the use of grain take precedence for biofuels against food or animal feeding, countries may witness higher consumer prices of red meat and poultry and possible meat shortages.
Higher grain prices will also affect the overall economy of some of the developing countries, translate into lower purchases of meats in certain countries, not necessarily due to improved domestic supply, but due to higher international prices. FAO report estimates that the import costs for developing countries might rise almost five percent from 2005, mainly as a result of price increases rather than an increase in the actual volume of food imports. In 2006 the global expenditures on imported food in 2006 could reach a historic high of US$374 billion – two percent more than the previous year’s level as per FAO report.
World production of coarse grains in 2006 stands at 981 million metric tons, down by 2.1 percent from 2005 but above the average of the past five years. There is also belief that the current higher prices are likely to encourage higher plantings and larger production in 2007, but if industrial use, mainly for ethanol, continues to grow at the current pace, it may take more than one good crop season for prices to retreat significantly from their current highs.
It is a catch 22 situation, as there was expectation of a rebound in the meat consumption due to renewed consumer confidence as a result of reduced animal disease outbreaks, the high feed costs may postpone the recovery in the livestock market.
While corn and soybean availability in the global market place is low and prices high, in Brazil the supplies are good and prices low, which is helping companies and farmers to expand feeding operations to feed the growing meat demand. The feedlot capacities have grown by over 20% within one year. The lower prices of grains will also help in feeding the rapidly expanding poultry sector in Brazil, which is more oriented towards exports.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Dec 16, 2006
Maize prices at the Market yard are slightly down over last week, at Rs.6700 per MT, a mere 2.7% drop over last week market yard prices. The average delivery prices remain in the range of Rs.8200 – 8300 per MT. The price drop is mostly in North India due to winter and drop in placement of chicks in the area. Maize prices at this time of the year are running at 22% higher that last year. At this time last year, the average delivered prices were Rs.6750 per MT.
Pearl Millet (Bajra) prices also cam down by about 6% this week, reaching a leven of Rs.7150 per MT, which are still higher than maize prices by 6.5%.
Sorghum (Jowar) prices also crashed at the market yard by 11% over last week, reaching a level of Rs.7400 per MT at the market yard, which is still higher than the maize price by 10%.
Barley prices remained stable at the Rs.8100 per MT at the market yard, which is similar to last year prices. The demand of barley as raw material for malt is going up. Malt is used to manufacture beverages and also beer. The two products are extreme in the middle income group, with malt beverages aimed at children for health and wellness, while beer is aimed at the younger generation as a fun drink.
The drop in prices is merely a correction and the prices are likely to go up again as the demand of maize in west, south and east increases, In addition the demand will pickup in January in North India as the placements of chicks for Holi (festival of colors) are likely to increase.
On the international front, China may not be able to fulfil its export obligations on maize. Reports indicate that the exporters had permits/contracts for 4.18 MMT, which was supposed to be completed by end of the year or early 2007. The total exports from China are 2.37 MMT and the domestic prices have steadily risen, due to increase in demand. China has also imported 60,000 tons on maize this year and has a quota of 7.2 MMT tons as per WTO rules.
The prices in US are up this week again. At CBOT corn for March 07 delivery was 145.2 per MT.
Animal feeding takes a hit with high grain prices
High grain prices -- particularly for wheat and corn – due to poor crop production in major production areas are likely to have an impact on the animal feeding in some parts of the world. The latest report from Food and Agriculture Organization (FAO), indicates that as the use of grain take precedence for biofuels against food or animal feeding, countries may witness higher consumer prices of red meat and poultry and possible meat shortages.
Higher grain prices will also affect the overall economy of some of the developing countries, translate into lower purchases of meats in certain countries, not necessarily due to improved domestic supply, but due to higher international prices. FAO report estimates that the import costs for developing countries might rise almost five percent from 2005, mainly as a result of price increases rather than an increase in the actual volume of food imports. In 2006 the global expenditures on imported food in 2006 could reach a historic high of US$374 billion – two percent more than the previous year’s level as per FAO report.
World production of coarse grains in 2006 stands at 981 million metric tons, down by 2.1 percent from 2005 but above the average of the past five years. There is also belief that the current higher prices are likely to encourage higher plantings and larger production in 2007, but if industrial use, mainly for ethanol, continues to grow at the current pace, it may take more than one good crop season for prices to retreat significantly from their current highs.
It is a catch 22 situation, as there was expectation of a rebound in the meat consumption due to renewed consumer confidence as a result of reduced animal disease outbreaks, the high feed costs may postpone the recovery in the livestock market.
While corn and soybean availability in the global market place is low and prices high, in Brazil the supplies are good and prices low, which is helping companies and farmers to expand feeding operations to feed the growing meat demand. The feedlot capacities have grown by over 20% within one year. The lower prices of grains will also help in feeding the rapidly expanding poultry sector in Brazil, which is more oriented towards exports.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Dec 16, 2006
Saturday, December 09, 2006
Maize Prices moving up, no respite in sight; Retail boom in the offing, but are chicken suppliers ready?
Maize Prices moving up, no respite in sight
Price of maize in India moved up yet again this week by another 4% over last week, closing at an average of about Rs.6900 per MT at the market yard. The delivered price on an average would be close to Rs.8300 – 8500 range per MT. Over the last year the prices are higher by 23% at the market yard levels.
Sorghum (Jowar) prices at the market yard have also reached a level of Rs.8300 per MT and up by approximately 11% over last week. Against maize, the prices are higher by approximately 20%.
Pearl Millet (Bajra) prices have also shot up and are at Rs.7600 per MT at the market yard, higher by 2.5% over last week. Against maize the prices are higher by approximately 10%.
Average price of barley was down this week by 11% over last week, levelling at RS.7900 per MT at the market yard. The prices are also lower than last year by 5.6%.
The situation on coarse grains looks very bleak, with demand going up and supplies dwindling fast. Government of India has extended duty free status for pulses import until July 31, 2007, as there is a need for pulses and this has also been done to curb inflation. If GOI does allow imports of maize at NIL duty, it may not be possible to reduce the cost of production of eggs, broilers or starch on a short term basis, but it will certainly enhance the availability of maize and any increase in prices will eventually be reflected in the inflation. At this point, the big question not the price but availability of the commodity to run the plants and feed the broilers and layers and have a sustainable employment generation in these sectors.
The world demand for corn will be rising in near future and in the current scenario Australia will also be in the market to buy corn from US. As Australian authorities complete the pest risk analysis from US, imports to Australia may start as soon as next month.
Prices of corn on CBOT were slightly down over last week. Dec corn closed at $139.33 per MT, down by almost $7.87 per MT over last week’s close.
Retail boom in the offing, but are chicken suppliers ready?
The retail boom in India is about to happen, with Reliance Retail, Bharti-Walmart, Subhiksha etc entering the fray and Metro expanding its wings. In addition to the retail boom, the growth of the fast food chains, KFC, Pizzahut, McDonalds also would happen.
With McDonalds at 100 stores at the moment, KFC with few joints (2 in Delhi and some other locations) and Pizzahut and many more to come, the next question to ask, are our chicken and value added product suppliers ready to serve the outlets, retail or fast food chains with a consistent good quality product?.
As one moves ahead, the processing plants in India are small and regional, may not be able to cover whole of the country. There is a need for operators to expand their operations, and the buyers to work very closely with the processors/suppliers to plan standards for the products and supply chain, which is a vital tool in the present scenario.
If there is no plan, the growth may not be proper and with supply as a bottleneck, the growth of the retail chains as well as the fast food restaurants may be hampered. In this case GOI’s intervention may be required only to form rules and regulations for quality certification (ISO & HACCP), but it would be the responsibility of the trade (Buyers and suppliers) to formulate a strategy which will be mutually beneficial to all, the processors, retailer/users and the consumer.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Dec 9, 2006
Price of maize in India moved up yet again this week by another 4% over last week, closing at an average of about Rs.6900 per MT at the market yard. The delivered price on an average would be close to Rs.8300 – 8500 range per MT. Over the last year the prices are higher by 23% at the market yard levels.
Sorghum (Jowar) prices at the market yard have also reached a level of Rs.8300 per MT and up by approximately 11% over last week. Against maize, the prices are higher by approximately 20%.
Pearl Millet (Bajra) prices have also shot up and are at Rs.7600 per MT at the market yard, higher by 2.5% over last week. Against maize the prices are higher by approximately 10%.
Average price of barley was down this week by 11% over last week, levelling at RS.7900 per MT at the market yard. The prices are also lower than last year by 5.6%.
The situation on coarse grains looks very bleak, with demand going up and supplies dwindling fast. Government of India has extended duty free status for pulses import until July 31, 2007, as there is a need for pulses and this has also been done to curb inflation. If GOI does allow imports of maize at NIL duty, it may not be possible to reduce the cost of production of eggs, broilers or starch on a short term basis, but it will certainly enhance the availability of maize and any increase in prices will eventually be reflected in the inflation. At this point, the big question not the price but availability of the commodity to run the plants and feed the broilers and layers and have a sustainable employment generation in these sectors.
The world demand for corn will be rising in near future and in the current scenario Australia will also be in the market to buy corn from US. As Australian authorities complete the pest risk analysis from US, imports to Australia may start as soon as next month.
Prices of corn on CBOT were slightly down over last week. Dec corn closed at $139.33 per MT, down by almost $7.87 per MT over last week’s close.
Retail boom in the offing, but are chicken suppliers ready?
The retail boom in India is about to happen, with Reliance Retail, Bharti-Walmart, Subhiksha etc entering the fray and Metro expanding its wings. In addition to the retail boom, the growth of the fast food chains, KFC, Pizzahut, McDonalds also would happen.
With McDonalds at 100 stores at the moment, KFC with few joints (2 in Delhi and some other locations) and Pizzahut and many more to come, the next question to ask, are our chicken and value added product suppliers ready to serve the outlets, retail or fast food chains with a consistent good quality product?.
As one moves ahead, the processing plants in India are small and regional, may not be able to cover whole of the country. There is a need for operators to expand their operations, and the buyers to work very closely with the processors/suppliers to plan standards for the products and supply chain, which is a vital tool in the present scenario.
If there is no plan, the growth may not be proper and with supply as a bottleneck, the growth of the retail chains as well as the fast food restaurants may be hampered. In this case GOI’s intervention may be required only to form rules and regulations for quality certification (ISO & HACCP), but it would be the responsibility of the trade (Buyers and suppliers) to formulate a strategy which will be mutually beneficial to all, the processors, retailer/users and the consumer.
Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com
Dec 9, 2006
Tuesday, December 05, 2006
Maize Prices move up again, production estimates down; China plans to phase out Live Poultry Markets
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
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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