Commodity prices surge
Maize prices are slightly up by about 4% reaching Rs.6950 per MT at the market yard this week. The prices are about 3% higher than last year. Reports suggest that over 500,000 MT of maize has been exported from India to Malaysia, Taiwan, Vietnam, Korea, Bangladesh and also to Sri Lanka and there is more to go as price are still conducive for exports.
Pearl Millet prices are up by 3% over last week to Rs.6600 per MT, but are 10% lower than prices last year. Against maize the prices are lower by 4%. Layer farmers are using pearl millet is feeds at about 5% levels to stabilize the feed prices.
Sorghum prices added 13% over last week reaching a level of Rs.9750 per Mt at the market yard. The prices are about 28% higher than last year and about 40% higher than maize.
Barley prices were down by about 8% over last week at Rs.9650 per MT. The prices are about 36% higher than last year. Reports indicate about 300,000 MT of exports of Barley from India.
Prices in US were up slightly over last week to $174.60 per MT at CBOT close on Friday. Indicative FOB US Gulf prices were $206.90 per MT for Jan/Feb 2008 deliveries. Indicative FOB PNW prices were $238 per MT for Feb/Mar 2008 deliveries.
In order to stem the rise in inflation China has chosen to auction 500 TMT of maize on Dec 25, 2007 as per reports available. Earlier auctions of 2 lots of 500,000 made available some quantities of corn into the market and stabilized the prices.
EU is currently reeling under severe feed grain shortage and reports available indicate that the shortage is likely to continue for the next two years. USGC estimates that EU will buy at least 10 MMT of corn and 3.9 MMT of sorghum.
Advantage Biotech maize
In April 2007, a report by PG Economics concluded that using biotech maize not only improves yield and increases the profits of the farmers, but also as biotech maize contains lower levels of myco-toxins, it is better for animal health.
In 2006, about 65,000 hac of Bt Maize was planted in seven EU states and in all the states the maize yield was higher by about 10% against the conventional non biotech varieties. The most significant advantage found was a significant reduction in myco-toxins found in biotech maize.
In early Dec 2007, European Commission has sent out proposals to all states for approval for new Biotech maize varieties. The new varieties are biotech varieties of hybrids that are already approved in EU and need to be authorized for food, feed, imports and processing, but not for cultivation.
EU is also looking to approve a variety of biotech potato, which has higher starch and will be used for industrial purposes only. The by-products from the above two will be allowed to be used in animal feeds.
Amit SachdevIndia Representative
U S Grains Council
bluecross303@gmail.com
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