Maize prices are up but stable
Maize prices for the last two weeks have been little higher than the first week of June where the prices were at Rs.7000 per ton at the Market Yard. Current prices are at Rs.7400 – 7500 range at the market yard. Though these are average prices at the market yards, consumption centres close to production centres are experiencing good delivery rates. Prices in Calcutta delivered were close to Rs.7600 per MT. This is from stocks from Bihar. Prices in Gujarat delivered at the starch plants were close to Rs.8200 per MT.
As the monsoon is catching up, there are reports of torrential rains in parts of Maharashtra, Karnataka, Gujarat and some maize production areas have been flooded. Maize planting was already lagging behind and with the flooding there are issues concerning the production for the year 2007-08. But this is too early to predict, and the rains abate, the final fate of the sowing will be known.
The end product prices of chicken and eggs are high. Live chicken is being sold at Rs.40 – 45 per kg at the major markets, while eggs prices are hovering at Rs.2.00 – 2.25 in major markets. With better returns, farmers are not complaining about the high input prices in India and the consumers are comfortable with the end product prices.
Corn prices in US reached a high of $181 (FOB US Gulf) as on June 15, 2007 as the prices on CBOT climbed to $164 per MT, which on Jun 22, 2007 were down to $144 per MT, while the FOB values were close to $161 per MT.
On June 29, 2007 the prices at CBOT were further down at $129.72 for July delivery, correspondingly the August FOB value was down to $ 152 – 153 per MT from last week’s $161 per MT . The prices were down on the higher rainfall in the corn belt and a USDA report which indicated that U.S. farmers planted 2.4 million more acres to corn than had previously been estimated and they, in turn, cut back their acreage planted to soybeans by 3.4 million acres. Current estimates indicate corn to be planted in 92.9 million acres as against 90.5 million acres estimated earlier and soybean being planted in 64.1 million acres as against 67.1 million acres estimated earlier. China has also raised its 2007 crop output forecast from 147 MMT to 149 MMT. In 2006, China produced an estimated 145.48 MMT as per the China National Grain and Oils Information centre.
New technologies to enhance the value to DDG’s
Dried distillers grains with Soluble’s (DDG’s) can now be pelleted, thanks to the technology from Agricultural Research Services (ARS) of US Department of Agriculture. This has been done using processing equipment at a commercial feed mill, and does not harm the high protein, low starch nutrient content of DDG’s
Dried distillers grains with Soluble’s (DDG’s) can now be pelleted, thanks to the technology from Agricultural Research Services (ARS) of US Department of Agriculture. This has been done using processing equipment at a commercial feed mill, and does not harm the high protein, low starch nutrient content of DDG’s
In addition, there is technology available to extract oil from DDGS, that be used to produce bio-diesel or refined to be used as oil for food . It is essentially corn oil. Two companies in the US, Verasun Energy and GS Clean Tech Corporation have the technology to do so.
After Ethanol is produced, DDGS has about 10 – 11% oil. The extraction of this oil will produce a new product which will be high protein, which can be used in mono-gastric animals as well.
With higher amount of corn being used as feedstock for the ethanol production, increased amount of DDGS is being fed to the animals in US as per the latest USDA report on the initial assessment of corn supply and demand. Corn use in feed is expected to be down by 3% over last year, only due to the availability of DDGS in the market.
Amit Sachdev
Representative
U S Grains Council
E mail: bluecross303@gmail.com
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