Maize prices are stable
Maize prices in India are stable for the time being, and are up by just 1% over last week to Rs.7300 per MT at the market yard. The price though are higher than last year by 18.7%. As per the reports available the consumption is likley to increase in the poultry and the starch sectors. Reports also indicate a higher area under crop as the prices have been very good. Though most of the maize areas have received adequate rains, they have also caused havoc in some of the maize growing areas, which could be a cause of concern. It is still too early to predict the maize production for the year Khariff season. Speculations of the higher price in August 2007 are also there, and prices are likley to open higher in the new season as well. Highest prices of maize was in Gujarat at Rs.8240 per MT.
Bajra (Pearl Millet) prices were down by 1.7% over last week to Rs.6250 per MT, but the prices are higher than last year by 0.7%. The prices are also lower than maize by 14.5%, thus making it a comepetive commodity against maize. Layer farmers in North India can easily use the product, replacing maize partly in the rations.
Sorghum (Jowar) prices were down by 4.7% over last week to Rs.9260 per MT. The prices are higher than last year by 19% and also higher than maize by 27%.
Barley prices dipped by 4.7% over last week to Rs.6750 per MT at the market yard. The prices are also lower than last year by 7.4%.
Corn prices in US also dipped. Corn on CBOT traded at $131 - 135 per MT for July - september. FOB values (US Gulf) were clsoe to $154-155 per MT for the same period. The ocean freight rates are heading north, making it impposible for some countries to cope up with the sudden increase in prices on imported commodoties. India is the same leauge with wheat prices being quoted at $318 - 370 per MT (CNF).
Dried Distillers Grains with Solubles (DDG's) a by product of the ethanol industry is available in US and is being used extensively in the livestock rations in US. Also countries like Egypt, Jordan, Morocco in the Middle East, Vietman, Malaysia, Indonesia in the South East Asia are using the product in the livestock rations. Prices (EX factory) generally should be 70% of the corn price at CBOT. Current FOB values (US gulf) are ranging from $147-149 per MT.
Corn in US, China and Argentina
Private analysts have reported a higher US crop of 339 MMT with the productivity of 3.97 tons/acre for the year 2007/08. USDA on the other hand has estimated a crop of 316 MMT with an average productivity of 3.817 tons/acre. The crop will be harvested in October 2007.
Reports from China indicate that the government is keen to limit the use of corn in the processing sector, specially ethanol production for fear of high prices. For the 11th plan uptill 2010, the growth of the corn processing sector was estimated at 6%.As per the reports available from China, the industry grew by 94% for the period 2000-2005, while the production grew by 31% for the same period.
Reports from Argetina indicate a higher crop for the year 2006/07. Argentina is harvesting its main corn crop now and is expected to export 15.5 MMT this year.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment