Commodity prices stable
Maize prices in India remained stable at Rs.7500 per MT at the market yard this week, but the prices were higher by about 19% over last year. With rains in most parts of the maize growing areas, there are reports of crop loss by submergence, delayed sowing etc and it is too early to predict the 2007/08 maize crop.
Pearl Millet (Bajra) prices moved up by about 2.7% this week to Rs.6800 per MT at the market yard. The prices are about 13% higher than last year prices. As against maize the prices are 9.5% lower than maize.
Sorghum prices dipped at the market yard this week by 4.6% over last week, to reach Rs.9200 per MT. The prices are about 24% higher than last year. As against maize the prices of Sorghum are 22% higher.
Barley prices have remained stable this week to Rs.7500 - 7600 per MT at the market yard, but the prices are higher than last year by 10.5%. As per the latest USDA production numbers, India's barley production is likely to rise due to more land under the crop.
Barley is used mainly as a cattle feed and by the brewery industry, but more recently has found use in the food especially breakfast cereals, due to health benefits offered by barley.
The latest report from USDA on corn crop, released on Aug 10, 2007 estimates the maize (corn) production to be 332 MMT, up by 24% from 2006, while U.S. soybean production is estimated to be sown by 18%. USDA also estimates that the ending stocks for 2007/08 will be up to 38.50 MMT.
Corn prices on CBOT were slightly up (+$2.59) over last week to $131.09 per MT (Sept Delivery). Prices for Dec also were up by $2.94 to $137.94 per MT.
Biotech or not
Many studies have been conduced which indicate that the biotech feed products are as safe as the products made available through conventional breeding. In the most recent report analyzing 19 separate studies, European Food Safety Authority (EFSA), has concluded that “Animals that have eaten biotech feed show no residual traces in their eggs or meat”.
The statement was against the petition filled by an International Environment Group, demanding special labels for dairy and meat products derived from those animals which have eaten biotech feeds.
The report said, “To date, a large number of experimental studies with livestock have shown that recombinant DNA fragments or proteins derived from GM plants have not been detected in tissues, fluids or edible products of farm animals like broilers, cattle, pigs or quails,”
Another interesting study has been conducted by Northern Ireland Grain Trade Association (NIGTA), on the cost of feed, if biotech is not approved by EU. The study indicates that the feed costs in EU will increase by 25% by 2009, rendering food production uncompetitive, if biotech varieties are not approved.
Layers sector to grow faster in India
Estimates by some of the leading players in the industry indicate that the layer sector in India has found a foothold, specially in the southern India. The layers industry from 2007/08 onwards is likely to grow by 7% as against a 4% growth until last year 2006/07. One of the main reasons of this growth is the stable egg prices and higher demand of eggs in the country.
As per current estimates India will place 175 Million layers in 2007/08 producing 48.8 billion eggs and if the growth of 7% is maintained, the numbers are likely to increase to 213 million by 2010/11, producing 59.8 billion eggs.
There is an increased demand of eggs for export as well from Middle East and East African countries. Cost of production of egg is the cheapest in India at Rs.1.40 per egg ($0.40 per doz) and even with small hitches like bird flu in the North East India, exports would continue if zoning of birds is practiced.
Amit Sachdev
India Representative
U S Grains Council
E mail: bluecross303@gmail.com
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