Maize prices In India are down
Maize prices in India are down to Rs.7000 per Mt at the market yard, on higher arrivals is key markets of Andhra Pradesh, Tamil Nadu and Bihar. The prices at the market yard are down by almost 3.5% over last week. The prices are about 23% higher that last year prices, when they are at Rs.5700 – 5800 per MT range at the market yard. The demand of maize in the summer months takes a hit, which stabilizes the prices. Analysts believe that this is short term and the prices will go up in the next couple of days as the arrivals slow down. The next new crop will be in the market in Oct 2007.
Pearl Millet (Bajra) prices have gone up by almost 4% over last week to Rs.7200 – 7200 per MT range and the prices are higher than last year by 8.5%. Against maize the prices have gone up and are higher by 4.1%.
Sorghum (Jowar) prices have gone up again this week by 6.5% over last week, reaching Rs.9200 – 9300 per MT at the market yard. The prices are higher than last year by over 14%. Against maize the prices are higher by over 32%, thus making it just impossible to use in feeding poultry.
Barley prices have been stable for some time now at Rs.7100 – 7150 per MT range and the prices are lower than last year by 3%.
The price of corn on CBOT shot up this week. This increase is attributed to the planting delays in US, due to wet weather in the corn belt. Prices at CBOT closed about 4 – 6% over last week. May $150.09; July $153.83; Sept $153.34; and Dec $153.74. The FOB values, US Gulf were also up by 3-4% for deliveries in June, July, Aug to $166.45, $166.80 and $169.10 per MT respectively. The delivery for May shot up by 7% over last week to $168.40 per MT.
Ocean freight is running historically higher, fuelled by the Asian demand, especially by China and India. Reports indicate that the increase is over 100% from April 2006.
As the demand of corn increases world wide, Brazil this winter is likely to increase in its share in the pie, by producing more corn than anticipated earlier. First estimates made available by the U S Grains Council Representative in Brazil, Alfredo Navarro de Andrade, indicate that the production is estimated at 49.5 – 50.5 MMT, which is about 3 MMT higher than the earlier expectations.
Maize prices in India are down to Rs.7000 per Mt at the market yard, on higher arrivals is key markets of Andhra Pradesh, Tamil Nadu and Bihar. The prices at the market yard are down by almost 3.5% over last week. The prices are about 23% higher that last year prices, when they are at Rs.5700 – 5800 per MT range at the market yard. The demand of maize in the summer months takes a hit, which stabilizes the prices. Analysts believe that this is short term and the prices will go up in the next couple of days as the arrivals slow down. The next new crop will be in the market in Oct 2007.
Pearl Millet (Bajra) prices have gone up by almost 4% over last week to Rs.7200 – 7200 per MT range and the prices are higher than last year by 8.5%. Against maize the prices have gone up and are higher by 4.1%.
Sorghum (Jowar) prices have gone up again this week by 6.5% over last week, reaching Rs.9200 – 9300 per MT at the market yard. The prices are higher than last year by over 14%. Against maize the prices are higher by over 32%, thus making it just impossible to use in feeding poultry.
Barley prices have been stable for some time now at Rs.7100 – 7150 per MT range and the prices are lower than last year by 3%.
The price of corn on CBOT shot up this week. This increase is attributed to the planting delays in US, due to wet weather in the corn belt. Prices at CBOT closed about 4 – 6% over last week. May $150.09; July $153.83; Sept $153.34; and Dec $153.74. The FOB values, US Gulf were also up by 3-4% for deliveries in June, July, Aug to $166.45, $166.80 and $169.10 per MT respectively. The delivery for May shot up by 7% over last week to $168.40 per MT.
Ocean freight is running historically higher, fuelled by the Asian demand, especially by China and India. Reports indicate that the increase is over 100% from April 2006.
As the demand of corn increases world wide, Brazil this winter is likely to increase in its share in the pie, by producing more corn than anticipated earlier. First estimates made available by the U S Grains Council Representative in Brazil, Alfredo Navarro de Andrade, indicate that the production is estimated at 49.5 – 50.5 MMT, which is about 3 MMT higher than the earlier expectations.
Storage of corn a major issue
In India, maize is traded, packed, transported and stored in jute bags. While it is a good system, if commodity is not dry or the place is not properly ventilated, there are chances that the commodity (maize) will spoil much faster. In all cases it is important to follow FIFO (First in First out) system, which is a management tool.
More recently there has been interest to move from bagged storage to bulk storage. Some end users are practising it others and other are contemplating to move in that direction.
The US Grains Council has a technical publication on Storage in Tropical Countries, which can be downloaded from the US Grains Council site. Please follow the link given below to open the file.
Amit Sachdev
Representative
U S Grains Council, India
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