Commodity prices rise
Maize prices are similar to last week at Rs.6800 per MT at market yard, but the prices are higher than last year by 5.2%. Prices in Karnataka have declined considerably at Rs.6300 per MT, lower than last week's Rs.7100 per MT, due to arrivals of the new crop in certain markets. The first estimates for the 2007-08 khariff crop have been declared by GOI and the estimates project a production of maize at 13.07 MMT from 7.617 million Hac, with an average productivity of 1.71 tons/hac. This would be a new record after 2006 khariff's dismal production of 11.43 MMT. Now that maize export are also not canalized (Notification was until Sept 5, 2007), there are reports of export commitments to neighbouring countries, primarily on the freight advantage. In the US about 14% of the corn crop has been harvested and the prices and on CBOT, corn closed at $148.22 for December delivery, higher by about $10 per MT over last week. FOB (US Gulf) rates were quoted at $ 176 - 177 per MT for Oct - Dec deliveries.
Pearl Millet (Bajra) prices have gained 10% over last week reaching Rs.6900 - 7000 per MT levels. The prices are about 7% higher than last year and against maize the prices are higher by 1%. The first estimates project a production of 7.97 MMT against a target of 8.5 MMT. The production estimates are lower than last years estimate of 8.63 MMT.
Sorghum (Jowar) prices gained about 22% over last week reaching Rs.10,200 per MT on the average. The prices are about 29% higher than last year. Against maize the prices are higher by 48%. The first estimates project the production of sorghum at 3.60 MMT in Khariff against the target of 4.20 MMT, The estimated production is lower than 2006 khariff estimates of 3.68 MMT. There are export queries for sorghum as well as there is interest from Europe and Africa to purchase the crop. US sorghum is being exported to Europe and Italy and also by Japan and Mexico. Sorghum is being quoted at $226.95 for Oct-Dec delivery (FOB US Gulf).
Barley prices have shot up by another 4.5% this week, reaching record levels of Rs.9700 per MT at the market yards. Delivered prices are about Rs.11,500- 12,000 per MT at the malting plants. Prices are higher than last year by 56%, which is a record. Reports indicate that about 100 - 150 TMT of barley has been exported to Saudi Arabia. Barley is a Rabi crop and will be planted in Nov 2007 to be harvested in Feb/Mar 2008 to be used in 2008-09 year. GOI has fixed the target for Barley at 2.0 MMT, up from last year's (2006-07) production on 1.31 MMT, against a target of 1.65 MMT. This is an increase of about 52% in the target over last year's production. In US the barley harvest is over and export commitments as per a report are about 115% higher than the estimate. Prices are quoted at $365 per MT (FOB PNW) for feed barley.
China corn market
Pearl Millet (Bajra) prices have gained 10% over last week reaching Rs.6900 - 7000 per MT levels. The prices are about 7% higher than last year and against maize the prices are higher by 1%. The first estimates project a production of 7.97 MMT against a target of 8.5 MMT. The production estimates are lower than last years estimate of 8.63 MMT.
Sorghum (Jowar) prices gained about 22% over last week reaching Rs.10,200 per MT on the average. The prices are about 29% higher than last year. Against maize the prices are higher by 48%. The first estimates project the production of sorghum at 3.60 MMT in Khariff against the target of 4.20 MMT, The estimated production is lower than 2006 khariff estimates of 3.68 MMT. There are export queries for sorghum as well as there is interest from Europe and Africa to purchase the crop. US sorghum is being exported to Europe and Italy and also by Japan and Mexico. Sorghum is being quoted at $226.95 for Oct-Dec delivery (FOB US Gulf).
Barley prices have shot up by another 4.5% this week, reaching record levels of Rs.9700 per MT at the market yards. Delivered prices are about Rs.11,500- 12,000 per MT at the malting plants. Prices are higher than last year by 56%, which is a record. Reports indicate that about 100 - 150 TMT of barley has been exported to Saudi Arabia. Barley is a Rabi crop and will be planted in Nov 2007 to be harvested in Feb/Mar 2008 to be used in 2008-09 year. GOI has fixed the target for Barley at 2.0 MMT, up from last year's (2006-07) production on 1.31 MMT, against a target of 1.65 MMT. This is an increase of about 52% in the target over last year's production. In US the barley harvest is over and export commitments as per a report are about 115% higher than the estimate. Prices are quoted at $365 per MT (FOB PNW) for feed barley.
China corn market
China's feed demand is likely to rise by over 10% in 2008/09 as per a report from China Feed Industry Association. basically due to higher consumption by hog (Pork) sector and also the poultry sector. This increased demand is likely to keep the commodity prices higher in China. With China’s major soybean and corn growing regions currently hit by serious droughts, lower Chinese production means the country has to import more to meet rising demand, industry players have said.
In a move to keep the demand of corn down and prices stable, China has decided to suspend all approvals for the industrial corn processing units for the next 3 years. As per a report from National Development and Reform Commission (NDRC), the next approvals will start only after 2010. The ban on “deep processing” of corn - involving the transformation of corn into industrial products like ethanol - comes amid concerns in China about the security of the food supply and the inflationary impact of bio-fuels which use grains as feedstock.
In the 10th Five-year between 2001-2005, annual growth of corn consumption by the industrial sector was 14 %, against an annual growth of 4.2 % in corn supply. Over the next three years, consumption of corn by industrial sector will be limited to to only 26 % of China's total corn consumption. China corn output in 2010 is expected to be 150 MMT, up 3.5% from the 2006 levels of 145 MMT, while the demand is likely to exceed 150 MMT.
Biotech and food security
An International Biotechnology Conference was organized by Federation of Indian Chamber of Commerce and Industries (FICCI) in collaboration with US Department of Agriculture (USDA) and Indian Council of Agricultural Research in New Delhi, this week (Sept 17-18, 2007) and deliberations from scientists, industry and regulators gave one message - Biotech is important for food security, products being developed are nothing new, but there needs to be a science based regulation.
Current biotechnology can increase crop yields and reduce production costs and increase farmer incomes even for small-scale farmers in developing countries, like in India, who make up a large part of the world’s poor and hungry population. More important for such farmers, many of whom struggle to make a living on marginal land, is ongoing research into drought-resistant and salt-tolerant crops. Biotechnology can help even the landless poor by enriching staple foods, such as through the addition of essential vitamins.
As on date there is no case of disease linked to the genetic modification of crops or animals, nor has there been any disease occurrence. Any linkage to disease or evidence to that effect would be targeted in the risk assessment process that is part of regulatory approval.
Reports by respected international expert bodies like the United Nations Food and Agriculture Organization states “Thus far, in those countries where transgenic crops have been grown, there have been no verifiable reports of them causing any significant health or environmental harm,”. UN FAO, 2004.
We now know fore sure that the use of biotech crops in India has helped the farmers increase the income, by way of saving on pesticides and increased production, getting a better value of the produce. In addition, the farmers has used less number of sprays, thus reducing the exposure to himself, his family members and also the environment.
Amit Sachdev,
In a move to keep the demand of corn down and prices stable, China has decided to suspend all approvals for the industrial corn processing units for the next 3 years. As per a report from National Development and Reform Commission (NDRC), the next approvals will start only after 2010. The ban on “deep processing” of corn - involving the transformation of corn into industrial products like ethanol - comes amid concerns in China about the security of the food supply and the inflationary impact of bio-fuels which use grains as feedstock.
In the 10th Five-year between 2001-2005, annual growth of corn consumption by the industrial sector was 14 %, against an annual growth of 4.2 % in corn supply. Over the next three years, consumption of corn by industrial sector will be limited to to only 26 % of China's total corn consumption. China corn output in 2010 is expected to be 150 MMT, up 3.5% from the 2006 levels of 145 MMT, while the demand is likely to exceed 150 MMT.
Biotech and food security
An International Biotechnology Conference was organized by Federation of Indian Chamber of Commerce and Industries (FICCI) in collaboration with US Department of Agriculture (USDA) and Indian Council of Agricultural Research in New Delhi, this week (Sept 17-18, 2007) and deliberations from scientists, industry and regulators gave one message - Biotech is important for food security, products being developed are nothing new, but there needs to be a science based regulation.
Current biotechnology can increase crop yields and reduce production costs and increase farmer incomes even for small-scale farmers in developing countries, like in India, who make up a large part of the world’s poor and hungry population. More important for such farmers, many of whom struggle to make a living on marginal land, is ongoing research into drought-resistant and salt-tolerant crops. Biotechnology can help even the landless poor by enriching staple foods, such as through the addition of essential vitamins.
As on date there is no case of disease linked to the genetic modification of crops or animals, nor has there been any disease occurrence. Any linkage to disease or evidence to that effect would be targeted in the risk assessment process that is part of regulatory approval.
Reports by respected international expert bodies like the United Nations Food and Agriculture Organization states “Thus far, in those countries where transgenic crops have been grown, there have been no verifiable reports of them causing any significant health or environmental harm,”. UN FAO, 2004.
We now know fore sure that the use of biotech crops in India has helped the farmers increase the income, by way of saving on pesticides and increased production, getting a better value of the produce. In addition, the farmers has used less number of sprays, thus reducing the exposure to himself, his family members and also the environment.
Amit Sachdev,
India Representative
U S Grains Council
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