Maize prices slump in India, move up in US
Maize prices have slumped in the market yard across the country to Rs.7700 per MT, a loss of 2.8% against last week. The prices though still remain higher than last year by 11% at the market yard level for loose material. Reports available indicate that maize is being delivered to destination in Tamil Nadu, Karnataka and also Andhra Pradesh at Rs.8400 – 8500 levels.
In the futures as well as the spot markets the prices have crashed and currently are below the Minimum Support Price (MSP) of Rs.8400 per MT. For Jan 2009 delivery, the prices were down by 3.4% over last week to Rs.7815 per MT< while for Feb and Mar delivery the prices tumbled 4.6% to level at Rs.7820 and Rs.7840 per MT. For April delivery the prices were down by 5.4% to Rs.7900 per MT. On the Spot market, maize at Nizamabad lost 2.73% to level at Rs.8279 per MT. In karimnagar and Davangere the prices were lower than last week by 2.9% and leveled at Rs.Rs.8082 and 8275 per MT.
These low prices are a boon to the poultry sector as the cost of production will go down and as the prices for broilers remain higher due o good demand in North, South and West, it will a good time for the poultry farmers. Even though North East of the country is affected due to bird flu and demand of chicken low in urban and rural belts in the region, other regions of the country are not affected as consumers are aware that bird flu birds will not reach them in their regions and there is no panic.
Pearl Millet (Bajra) prices have gone up in the market yard by 2.2% to reach Rs.7760 per MT at the market yard. Against maize the prices are higher by 1.1%, which has not been case for a long time. The prices are also higher than last year by 14.2% at this time of the year.
Sorghum (Jowar) prices moved close to Rs.8200 per MT, losing 8.8% over the week. The prices are only 6.4% higher than maize and remain lower than last year prices by about 25%.
Barley prices have also slumped by 8.6% at the market yard and are lower than last year by 23.6%. In the spot market at Jaipur the price was down by 0.4% to Rs.9162 per MT (tax paid).
Corn on CBOT moved up by 8.3% for Mar and May delivery to close at $162.27 and $166.30 per MT
Poultry industry to shrink in US
In 2007, US poultry produced 8.9 billion broilers and at the farm level the broilers were worth $21.5 billion and the retail value was $43 billion as per USDA report. The total poultry meat production was 16.374 billion kg, with a per capita consumption of 38.73 kg per person per annum.
In 2008, especially in the last quarter, the poultry industry has cut back production and eggs set have come down by 8% in October and 3% in November against last year’s numbers for the same month. Overall production in November is expected to be lower by 5%, based on slaughter numbers and the trend is likely to continue well into 2009 as per industry watchers. In 2008, the per capita consumption as expected was to be 38.46 kg per person per annum and as new data emerges, this will be down further.
Reports indicate that the US poultry industry is likely to cut production by 5-6%, based on eggs set. The major reason for this production cuts is the lower demand of chicken.
In Brazil too, Perdigao and Sadia, the two largest meat processors, have plans to cut poultry meat output to adjust inventories. This is being down as the exports have slowed and prices will need to be stabilized.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, December 27, 2008
Monday, December 22, 2008
Sorghum and DDGS Prices in US - update
Sorghum and DDGS Prices in US
The US Gulf Fob Prices of US No.2 corn for Jan - May 2009 delivery is ranging from $170-172 per MT. The prices of Sorghum at the same time is $159 - 167 per Mt for the same period. For January delivery the prices are lower by 6.4%. By the month of may the difference is only 3%.
DDGS prices have also slumped and currently indicative prices are $180-186 per MT delivered to SEA region, particularly to Malaysia and Vietnam.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
The US Gulf Fob Prices of US No.2 corn for Jan - May 2009 delivery is ranging from $170-172 per MT. The prices of Sorghum at the same time is $159 - 167 per Mt for the same period. For January delivery the prices are lower by 6.4%. By the month of may the difference is only 3%.
DDGS prices have also slumped and currently indicative prices are $180-186 per MT delivered to SEA region, particularly to Malaysia and Vietnam.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Sunday, December 21, 2008
Mixed bag of prices in India
Mixed bag of prices in India
Maize prices have remained stable at Rs.7900 per Mt this week, bur have been higher than the last year prices by about 12.4%. The demand of maize is slow as the second episode of Bird Flu has been report in West Bengal in Malda District. This is likely to affect the demand of maize in the North Eastern Region. In the futures as well as the spot markets though the price of maize has slumped. In The futures market the prices slumped by 1.4% - 3.3% for Jan – Mar delivery. In the spot markets as well in Nizamabad, Karimnagar and davangere, the prices were down by 0.75%, 1.54% and 2.16% respectively over last week..
Pearl Millet (bajra) prices this week moved up over last week by about 3% and have been higher than last year by 12.6%. Against maize the pries are lower by 4%.
Sorghum (Jowar) prices have also increased by 3.4% this week at the market yard. Prices, however are lower than last year by 8.3%. Against maize the prices are higher by 12%.
Barley prices have moved at the market yard level by 7.1%, but the prices are lower than last year by 5.6%. In the spot market at Jaipur theprices slumped by 6% over last week.
Corn on CBOT closed higher this week against last week by almost 2% by March delivery ($149.83 per MT) and also up for May delivery by 1.38% ($153.57 per MT). Sever weather in US now would affect the deliveries, but the indicative values FOB US Gulf would be 4172/175 per MT.
While in India, the Sorghum prices have been ruling higher than the corn prices, in US though the price of Sorghum on US Gulf (FOB) is indicated lower than corn at $157/165 per MT as on last week, a discount of $4-10 per MT for January - April delivery as of last week. It may be noted that US produces zero tannin Sorghum, which is used at the same value as corn in poultry rations, Countries like Mexico and last year European farmers used Sorgjum in feeds without any problems.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Maize prices have remained stable at Rs.7900 per Mt this week, bur have been higher than the last year prices by about 12.4%. The demand of maize is slow as the second episode of Bird Flu has been report in West Bengal in Malda District. This is likely to affect the demand of maize in the North Eastern Region. In the futures as well as the spot markets though the price of maize has slumped. In The futures market the prices slumped by 1.4% - 3.3% for Jan – Mar delivery. In the spot markets as well in Nizamabad, Karimnagar and davangere, the prices were down by 0.75%, 1.54% and 2.16% respectively over last week..
Pearl Millet (bajra) prices this week moved up over last week by about 3% and have been higher than last year by 12.6%. Against maize the pries are lower by 4%.
Sorghum (Jowar) prices have also increased by 3.4% this week at the market yard. Prices, however are lower than last year by 8.3%. Against maize the prices are higher by 12%.
Barley prices have moved at the market yard level by 7.1%, but the prices are lower than last year by 5.6%. In the spot market at Jaipur theprices slumped by 6% over last week.
Corn on CBOT closed higher this week against last week by almost 2% by March delivery ($149.83 per MT) and also up for May delivery by 1.38% ($153.57 per MT). Sever weather in US now would affect the deliveries, but the indicative values FOB US Gulf would be 4172/175 per MT.
While in India, the Sorghum prices have been ruling higher than the corn prices, in US though the price of Sorghum on US Gulf (FOB) is indicated lower than corn at $157/165 per MT as on last week, a discount of $4-10 per MT for January - April delivery as of last week. It may be noted that US produces zero tannin Sorghum, which is used at the same value as corn in poultry rations, Countries like Mexico and last year European farmers used Sorgjum in feeds without any problems.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, December 13, 2008
Commodities plunge further in India; Consistent food safety standards a must for trade
Commodities plunge further in India
Maize prices remained stable at the market yard this week at Rs.7900 per MT. prices are about 16% higher than last year’s prices. There are reports that GOI is considering a second package for the agriculture sector and provide a 10% incentive for export of maize and SBM from India. The incentive will be on FOB prices and the export value of maize, would still be higher for Indian corn even after a 10% incentive, specially on bulk corn exports from India.
In the futures market as well maize prices slumped this week by about 1% for Dec delivery to Rs.8040 per MT. Spot prices in Nizamabad, Davangere and Karimnagar were similar to last week to Rs.8500-8600 per MT levels.
Pearl Millet (Bajra) prices slumped by 4.6% this week to reach Rs.7375 per MT. Against maize, the prices are lower by 7.4% and are higher than last year by 12.5%.
Sorghum (Jowar) prices slumped by 5.3% to Rs.8700 per MT at the market yard. The prices were just about 1% higher than last week and against maize, the prices are 14% higher.
Barley prices plunged 7.8% this week to Rs.8500 per MT. These are the lowest prices since Sept 2007. The prices are lower than last year prices by 23%. In the futures market, barley prices plunged by 3% to Rs.9700 per MT. Even in the spot markets, prices were down by 3.8% to Rs.9790 per MT at Jaipur.
Corn on CBOT bounced back and gained about 22% closing at $141.48 per Mt for Dec delivery and adding 21% to the rally for mar delivery, closing at 146.99 per MT for Mar delivery. For may delivery, corn on CBOT closed at %151.41 per MT. Fob prices (US Gulf) were indicated at $166/167 per MT, while for PNW were at $176/178 per MT. The indicative frieght rates for US gulf - japan were at $23 per MT while PNW-Japan were at a low of $13 per MT.
USDA also released its monthly report, in which the corn production estimates are unchanged, but the demand for corn from ethanol sector has been reduced by 7.62 MMT. In addition, the export projection have been decreased by 2.54 MMT.
The Chinese corn crop estimates have been increased from 156 MMT to 160 MMT. There are unconfirmed reports that China may also give an export incentive of 13%, but even with that the reports say that the Chinese corn prices will be higher than the US and South American corn in the region.
Consistent food safety standards a must for trade
Countries are being urged to adopt internationally consistent food safety standards and it will help in better trade and also assist in building the trust with domestic consumers. The case in point is China, which was recently under limelight due to melamine adulteration in milk and milk products and its possible in the food chain including meat and meat products.
Recently EU opened up its borders for Chinese meat and poultry products after 4 years and this will also help China to move the case in Russia and Middle East.
The move has allowed a number of companies who follow the international food safety regulation to ship heat-treated products to the EU. This move has not only boosted the confidence of exports but has helped the local market as well. The quality has improved as per a report from China.
In an interesting turn of events, the Kerala High Court this week ordered the closure of illegal slaughter houses and meat shops in the State. The local self-governing bodies have been directed to ensure there was no illegal slaughter houses are functioning in the State.
In 2006, the The Supreme Court had also issued notices to the federal government and six states directing them to bring in a uniform legislation to set up slaughter houses for all animals in the country to provide hygienic meat to the population and also provide safeguard against damages to the environment.
The Municipal Corporation of Delhi in 2004 had announced a law that bans the slaughter of poultry in the city and its exhibition at shops. It also gives direction on the shops sized, and which kind of meat can be sold. The law is still to be implemented as the public slaughter facility in Delhi or large/small animals and also poultry is still under review. Though the large animal slaughter facility has been constructed, but is not operational.
Maize prices remained stable at the market yard this week at Rs.7900 per MT. prices are about 16% higher than last year’s prices. There are reports that GOI is considering a second package for the agriculture sector and provide a 10% incentive for export of maize and SBM from India. The incentive will be on FOB prices and the export value of maize, would still be higher for Indian corn even after a 10% incentive, specially on bulk corn exports from India.
In the futures market as well maize prices slumped this week by about 1% for Dec delivery to Rs.8040 per MT. Spot prices in Nizamabad, Davangere and Karimnagar were similar to last week to Rs.8500-8600 per MT levels.
Pearl Millet (Bajra) prices slumped by 4.6% this week to reach Rs.7375 per MT. Against maize, the prices are lower by 7.4% and are higher than last year by 12.5%.
Sorghum (Jowar) prices slumped by 5.3% to Rs.8700 per MT at the market yard. The prices were just about 1% higher than last week and against maize, the prices are 14% higher.
Barley prices plunged 7.8% this week to Rs.8500 per MT. These are the lowest prices since Sept 2007. The prices are lower than last year prices by 23%. In the futures market, barley prices plunged by 3% to Rs.9700 per MT. Even in the spot markets, prices were down by 3.8% to Rs.9790 per MT at Jaipur.
Corn on CBOT bounced back and gained about 22% closing at $141.48 per Mt for Dec delivery and adding 21% to the rally for mar delivery, closing at 146.99 per MT for Mar delivery. For may delivery, corn on CBOT closed at %151.41 per MT. Fob prices (US Gulf) were indicated at $166/167 per MT, while for PNW were at $176/178 per MT. The indicative frieght rates for US gulf - japan were at $23 per MT while PNW-Japan were at a low of $13 per MT.
USDA also released its monthly report, in which the corn production estimates are unchanged, but the demand for corn from ethanol sector has been reduced by 7.62 MMT. In addition, the export projection have been decreased by 2.54 MMT.
The Chinese corn crop estimates have been increased from 156 MMT to 160 MMT. There are unconfirmed reports that China may also give an export incentive of 13%, but even with that the reports say that the Chinese corn prices will be higher than the US and South American corn in the region.
Consistent food safety standards a must for trade
Countries are being urged to adopt internationally consistent food safety standards and it will help in better trade and also assist in building the trust with domestic consumers. The case in point is China, which was recently under limelight due to melamine adulteration in milk and milk products and its possible in the food chain including meat and meat products.
Recently EU opened up its borders for Chinese meat and poultry products after 4 years and this will also help China to move the case in Russia and Middle East.
The move has allowed a number of companies who follow the international food safety regulation to ship heat-treated products to the EU. This move has not only boosted the confidence of exports but has helped the local market as well. The quality has improved as per a report from China.
In an interesting turn of events, the Kerala High Court this week ordered the closure of illegal slaughter houses and meat shops in the State. The local self-governing bodies have been directed to ensure there was no illegal slaughter houses are functioning in the State.
In 2006, the The Supreme Court had also issued notices to the federal government and six states directing them to bring in a uniform legislation to set up slaughter houses for all animals in the country to provide hygienic meat to the population and also provide safeguard against damages to the environment.
The Municipal Corporation of Delhi in 2004 had announced a law that bans the slaughter of poultry in the city and its exhibition at shops. It also gives direction on the shops sized, and which kind of meat can be sold. The law is still to be implemented as the public slaughter facility in Delhi or large/small animals and also poultry is still under review. Though the large animal slaughter facility has been constructed, but is not operational.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, December 06, 2008
Maize down, while other coarse cereal prices move up; Bird flu and compartmentalization
Maize down, while other coarse cereal prices move up
Maize prices were Stable this week in India and were close to Rs.7900 per MT at the Market yard level. Prices are about 6% below the Minimum Support prices announced by GOI. Against last year, the prices are higher by about 14% at the market yard level.
In the future market, the prices were down by 0.6 – 1.6% for Dec – Feb delivery against last week. For Dec 2008 and Jan 2009 delivery pries were below MSP. Even in the SPOT markets of Davangere and Nizamabad and prices were down by 0.3 and 1.3% respectively against last week. Only in Karimnagar the prices were up by about 1.5% to Rs.8633 per MT.
Pearl Millet (Bajra) prices were up this week by 6.3% against last week, reaching Rs7750 per MT at the market yard. Against last year, the prices were higher by 13%. Against maize, the prices are lower by 2% only.
Sorghum (Jowar) prices also went up against last week by 3.5% to Rs.9180 per MT. Pries are lower than last year by 10.5% and against maize the prices are higher by 14%.
Barley prices have remained stable on an average at Rs.9200 -9300 per MT range. And are lower than last year values by about 12%. In the future market as well the prices were down by 3% for Dec delivery to Rs.9990 and for April lower by 4% to Rs.10,442 per MT.
On CBOT, the prices were under $3.00 per Bushel (lowest) and lost 16% against last week’s Dec and March close. The delivery for the two months were indicated at $115.5 and 121.72 per MT. respectively. Indicative FOB values (US Gulf) would be close by $135/142 per MT. CNF values to SEA region would be close to $180/185 per MT.
There are many factors being attributed to the drop in corn prices in US, including higher dollar, lower crude, November employment report, which shows the highest unemployment numbers since 1974. This shows that the economic slowdown is there and demand erosion continues. In addition Government of Argentina has lowered export taxes on corn from 25% to 20%, making Argentine corn much cheaper. There are reports that Argentine and Brazilian corn is available in SEA region at $165/170 per MT.
Bird flu and compartmentalization
India is in the grip of BIRD FLU once again. This time in Assam in the KAMRUP district, which has Megahlaya in the South and beyond that is Bangladesh. The recent bird flu outbreak has hit exports, which were already down. It has been two years now that Indian’s exports of eggs and poultry meat has been hit badly because of bird flu. The last case of bird flu was reported in West Bengal in Feb 2008, it was only in mid November 2008 that India was declared bird flu free.
It is not only the exports that are hit, but demand of eggs and poultry meat in the region also takes a beating. It has been recognized that eradicating BIRD FLU from the geographical area is almost impossible and it is important to manage the same and plan systems which, will help the industry move forward. The need is to avoid losses and continue the growth of the industry.
The World Organization for Animal Health (OIE) included the use of compartments in its guidelines on avian influenza control in 2005, where it is the stressed that compartmentalization as a strategy can be adopted by countries but attention must be given to the production level and industry characteristics features. It will also be important then that the countries have trade agreements which define compartmentalization, so as trade is not affected.
To understand, compartmentalization means creating/identifying small groups of farms or processing units based on the scale of production and other shared characteristics in order that approaches to controlling disease are geared to these identified compartments rather than the entire poultry industry
Farms with low input low output management such as households rearing backyard native chickens could be classed in a completely separate compartment to that of a high bio-secure intensive operation raising thousands of broilers for international markets.
The grouping thus is based on the scale of production and inputs, and particularly on a common bio-security system within a compartment, and degree of traceability of animals and products with in the chain. There is a possibility that the geographic space occupied by a compartment is not continuous, provided that bio-security is maintained and thus all of the operations within one vertically integrated poultry company could be considered as a compartment, even if they are physically separated.
Compartmentalization as per OIE can only be effective when seen as part of a a national disease control strategy, requiring surveillance and monitoring activities, stamping out of outbreaks and on-farm bio-security, and protection for the compartment from incursion of disease agents.
In such a situation, when AI outbreaks are reported in backward systems, the large, bio-secure units continue production of chicks, meat, & eggs, and exports that are subject to the trade agreement.
In the new system of compartmentalization, certain changes in management would also be seen in different compartments.
An earlier report of Feb 02, 2008 can be seen on zoning
http://usgcindiamarketreport.blogspot.com/2008/02/commodity-prices-move-up-zoning-of.html
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Maize prices were Stable this week in India and were close to Rs.7900 per MT at the Market yard level. Prices are about 6% below the Minimum Support prices announced by GOI. Against last year, the prices are higher by about 14% at the market yard level.
In the future market, the prices were down by 0.6 – 1.6% for Dec – Feb delivery against last week. For Dec 2008 and Jan 2009 delivery pries were below MSP. Even in the SPOT markets of Davangere and Nizamabad and prices were down by 0.3 and 1.3% respectively against last week. Only in Karimnagar the prices were up by about 1.5% to Rs.8633 per MT.
Pearl Millet (Bajra) prices were up this week by 6.3% against last week, reaching Rs7750 per MT at the market yard. Against last year, the prices were higher by 13%. Against maize, the prices are lower by 2% only.
Sorghum (Jowar) prices also went up against last week by 3.5% to Rs.9180 per MT. Pries are lower than last year by 10.5% and against maize the prices are higher by 14%.
Barley prices have remained stable on an average at Rs.9200 -9300 per MT range. And are lower than last year values by about 12%. In the future market as well the prices were down by 3% for Dec delivery to Rs.9990 and for April lower by 4% to Rs.10,442 per MT.
On CBOT, the prices were under $3.00 per Bushel (lowest) and lost 16% against last week’s Dec and March close. The delivery for the two months were indicated at $115.5 and 121.72 per MT. respectively. Indicative FOB values (US Gulf) would be close by $135/142 per MT. CNF values to SEA region would be close to $180/185 per MT.
There are many factors being attributed to the drop in corn prices in US, including higher dollar, lower crude, November employment report, which shows the highest unemployment numbers since 1974. This shows that the economic slowdown is there and demand erosion continues. In addition Government of Argentina has lowered export taxes on corn from 25% to 20%, making Argentine corn much cheaper. There are reports that Argentine and Brazilian corn is available in SEA region at $165/170 per MT.
Bird flu and compartmentalization
India is in the grip of BIRD FLU once again. This time in Assam in the KAMRUP district, which has Megahlaya in the South and beyond that is Bangladesh. The recent bird flu outbreak has hit exports, which were already down. It has been two years now that Indian’s exports of eggs and poultry meat has been hit badly because of bird flu. The last case of bird flu was reported in West Bengal in Feb 2008, it was only in mid November 2008 that India was declared bird flu free.
It is not only the exports that are hit, but demand of eggs and poultry meat in the region also takes a beating. It has been recognized that eradicating BIRD FLU from the geographical area is almost impossible and it is important to manage the same and plan systems which, will help the industry move forward. The need is to avoid losses and continue the growth of the industry.
The World Organization for Animal Health (OIE) included the use of compartments in its guidelines on avian influenza control in 2005, where it is the stressed that compartmentalization as a strategy can be adopted by countries but attention must be given to the production level and industry characteristics features. It will also be important then that the countries have trade agreements which define compartmentalization, so as trade is not affected.
To understand, compartmentalization means creating/identifying small groups of farms or processing units based on the scale of production and other shared characteristics in order that approaches to controlling disease are geared to these identified compartments rather than the entire poultry industry
Farms with low input low output management such as households rearing backyard native chickens could be classed in a completely separate compartment to that of a high bio-secure intensive operation raising thousands of broilers for international markets.
The grouping thus is based on the scale of production and inputs, and particularly on a common bio-security system within a compartment, and degree of traceability of animals and products with in the chain. There is a possibility that the geographic space occupied by a compartment is not continuous, provided that bio-security is maintained and thus all of the operations within one vertically integrated poultry company could be considered as a compartment, even if they are physically separated.
Compartmentalization as per OIE can only be effective when seen as part of a a national disease control strategy, requiring surveillance and monitoring activities, stamping out of outbreaks and on-farm bio-security, and protection for the compartment from incursion of disease agents.
In such a situation, when AI outbreaks are reported in backward systems, the large, bio-secure units continue production of chicks, meat, & eggs, and exports that are subject to the trade agreement.
In the new system of compartmentalization, certain changes in management would also be seen in different compartments.
An earlier report of Feb 02, 2008 can be seen on zoning
http://usgcindiamarketreport.blogspot.com/2008/02/commodity-prices-move-up-zoning-of.html
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, November 29, 2008
Coarse Grains Prices Slump; Brazilian Poultry Market and Prices
Coarse Grains Prices Slump
Maize prices slumped this week by 8% going below Rs.8000 per MT levels this week on an average at the market yard. The prices averaged Rs.7830 per MT, about 6.7% lower than the MSP announced by GOI. There are reports from Andhra Pradesh and Karnataka that GOI has stepped up purchases at the MSP level. The prices were about 14.7% higher than last year prices. The Nov average price was Rs.8137 per MT at the market yard, about 22% higher than last year.
In the future market, maize prices were up slightly by Rs.30 – 150 per Mt over last week’s close. While Dec delivery was Rs.8165 per MT, Feb delivery was Rs.8550 per MT. In the Spot markets as well, prices were up slightly in Nizamabad to Rs,8670 per Mt, but in Karimnagar and Davangere prices slumped to Rs,8506 and Rs.8585 pr MT. In Davangere prices were lower by Rs.300 per Mt over last week.
Pearl Millet (Bajra) prices also went down by 7.1% and were at Rs.7272 per MT at the market yard. The prices though are higher than last year by 4.1% for last week of Nov. Against Maize, the prices are lower by 7.7%. The average November value is Rs.7506 per Mt, similar to last month (October), but 11.4% higher than last year’s November average price at the market yard.
Sorghum (Jowar) prices slumped by 4.5% at the market yard over last week and averaged Rs.8867 per MT, Prices were 12.3% lower than last year’s prices. Against Maize, the prices are higher by 11.6%. Nov average prices were Rs.9083 per MT,, about 4.8% lower than last year.
Barley prices slumped by 1.1% to Rs.9195 per MT. prices are down by 8.5% against last year. November average price is Rs.9275 per MT, about 12% lower than last year.
In the future market the prices slumped by Rs.400 per MT over last week to Rs.10,296 per Mt for Dec delivery and Rs.10 ,888 per MT for April delivery. In the spot market too prices were down by Rs.300 per MT to 10358 per MT.
Corn prices on CBOT moved up by about 3.3% over last week for Dec / mar delivery. Dec delivery on CBOT was $137.55 per MT and Dec $143.92 per MT against $133.22 and $139.44 per MT last week.
Brazilian Poultry Market and Prices
Market reports project broiler meat production in Brazil to increase in 2009 by 5% on higher exports and domestic demand. The improved outlook for the Brazilian economy also supports higher domestic demand for animal protein in 2009. Brazil consumes about 37 kg of poultry meat per capita/annum against 45 kg per capita/annum in USA.
In 2000, Brazil farmers placed 27.5 Million broiler parents, which produced 3.2 billion broilers. The price of broiler in 2000 was $0.50 per kg and was sold at $0.68 per kg (RTC). The prices of corn and soybean meal were $0.129 and $0.18 per kg respectively.
A Sept 2008 report indicates that Brazil placed 50.52 million broiler parents and will produce 5.56 billion broilers in 2008. The RTC price of chicken was $1.27 per kg. Corn and Soymeal prices were $0.273 and 0.43 per kg. Current price of corn though is $0.145 – 0.148 per kg against $0.186 per kg price in India. Soymeal price in India currently is $0.30 per kg at the feed mill.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Maize prices slumped this week by 8% going below Rs.8000 per MT levels this week on an average at the market yard. The prices averaged Rs.7830 per MT, about 6.7% lower than the MSP announced by GOI. There are reports from Andhra Pradesh and Karnataka that GOI has stepped up purchases at the MSP level. The prices were about 14.7% higher than last year prices. The Nov average price was Rs.8137 per MT at the market yard, about 22% higher than last year.
In the future market, maize prices were up slightly by Rs.30 – 150 per Mt over last week’s close. While Dec delivery was Rs.8165 per MT, Feb delivery was Rs.8550 per MT. In the Spot markets as well, prices were up slightly in Nizamabad to Rs,8670 per Mt, but in Karimnagar and Davangere prices slumped to Rs,8506 and Rs.8585 pr MT. In Davangere prices were lower by Rs.300 per Mt over last week.
Pearl Millet (Bajra) prices also went down by 7.1% and were at Rs.7272 per MT at the market yard. The prices though are higher than last year by 4.1% for last week of Nov. Against Maize, the prices are lower by 7.7%. The average November value is Rs.7506 per Mt, similar to last month (October), but 11.4% higher than last year’s November average price at the market yard.
Sorghum (Jowar) prices slumped by 4.5% at the market yard over last week and averaged Rs.8867 per MT, Prices were 12.3% lower than last year’s prices. Against Maize, the prices are higher by 11.6%. Nov average prices were Rs.9083 per MT,, about 4.8% lower than last year.
Barley prices slumped by 1.1% to Rs.9195 per MT. prices are down by 8.5% against last year. November average price is Rs.9275 per MT, about 12% lower than last year.
In the future market the prices slumped by Rs.400 per MT over last week to Rs.10,296 per Mt for Dec delivery and Rs.10 ,888 per MT for April delivery. In the spot market too prices were down by Rs.300 per MT to 10358 per MT.
Corn prices on CBOT moved up by about 3.3% over last week for Dec / mar delivery. Dec delivery on CBOT was $137.55 per MT and Dec $143.92 per MT against $133.22 and $139.44 per MT last week.
Brazilian Poultry Market and Prices
Market reports project broiler meat production in Brazil to increase in 2009 by 5% on higher exports and domestic demand. The improved outlook for the Brazilian economy also supports higher domestic demand for animal protein in 2009. Brazil consumes about 37 kg of poultry meat per capita/annum against 45 kg per capita/annum in USA.
In 2000, Brazil farmers placed 27.5 Million broiler parents, which produced 3.2 billion broilers. The price of broiler in 2000 was $0.50 per kg and was sold at $0.68 per kg (RTC). The prices of corn and soybean meal were $0.129 and $0.18 per kg respectively.
A Sept 2008 report indicates that Brazil placed 50.52 million broiler parents and will produce 5.56 billion broilers in 2008. The RTC price of chicken was $1.27 per kg. Corn and Soymeal prices were $0.273 and 0.43 per kg. Current price of corn though is $0.145 – 0.148 per kg against $0.186 per kg price in India. Soymeal price in India currently is $0.30 per kg at the feed mill.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, November 22, 2008
Coarse grains prices move up slightly; GSM credit program from USDA
Coarse grains prices move up slightly
Maize prices moved up by about 6% against last week, averaging Rs.8500 per MT at the market yard. The prices were about 21% higher than last week and also were about Rs.100 above the Minimum Support Price of Rs.8400 announced by GOI.
The future prices of maize on NCDEX were up slightly against last week. SPOT prices were stable/similar to last week at all locations but at Davangere the prices were reported to be up by 1.5% to Rs.8800 per MT.
Pearl Millet (Bajra), prices remained stable at about Rs.7800 per MT, but were up by about 12% higher than last year’s prices. The prices for pearl Millet were about 8.8% lower than maize prices at the market yard.
Sorghum (Jowar) prices added 2.2% to the tally, moving to Rs.9290 per MT. The prices were only 2.6% higher than last year’s prices. Against maize the prices are about 8.3% higher at the market yard.
Barley prices have also moved up this week, adding 2.3% (Rs.300) to the tally. Barley was offered at the market yard at Rs.9300 per MT. The price remains 9.5% lower than last year’s prices. In the Spot market at Jaipur, prices were reported to be about 2.2% lower over last week to 10,650 per MT.
Corn prices on CBOT crashed by about 11% this week against last week values. Dec corn was traded at $133.22, while March corn at $ 139.44. One of the reasons attributed to the lower prices is a general erosion of demand of corn as cheap feed wheat from the Black Sea Region and Western Europe becomes available in the international markets. The lower prices from US will also put pressure on Indian corn exports.
Malting Barley prices in US in Great falls and Minneapolis were $198.8 and $215.29 per MT. There are reports that Saudi Arabia will reduce import subsidies on barley imports due to declining world prices. Saudi Arabia uses imported barley to feed animals, especially sheep, goat and camels, which are with the Bedouins (farmers). Western Australia is all set to produce a barley crop of 2.5 MMT, which is second only to the 2003-04 crop, but lower than had been expected in September.
GSM credit program from USDA
The United States Department of Agriculture (USDA) recently announced $3.5 billion in credit guarantees for the 2009 fiscal year. In these times of crisis when countries are facing liquidity crunch, the USDA’s Commodity Credit Corporation (CCC) administers export credit guarantees for commercial financing of U.S. agricultural exports.
The export Credit Guarantee Program (GSM-102) covers credit terms up to three years. GSM-102 underwrites credit extended by the private banking sector in the United States to approved foreign banks using letters of credit to pay for food and agricultural products sold to foreign buyers. GSM-102 mandates the overseas buyers to purchase the needed commodities from the United States.
The details about the program can be downloaded from the link below.
http://www.fas.usda.gov/excredits/english.html
CO Bank is the authorized bank in the US and details can be checked on its website.
http://www.cobank.com/
It may be noted that DDGS is a U.S. Commodity acceptable under this program.
Maize prices moved up by about 6% against last week, averaging Rs.8500 per MT at the market yard. The prices were about 21% higher than last week and also were about Rs.100 above the Minimum Support Price of Rs.8400 announced by GOI.
The future prices of maize on NCDEX were up slightly against last week. SPOT prices were stable/similar to last week at all locations but at Davangere the prices were reported to be up by 1.5% to Rs.8800 per MT.
Pearl Millet (Bajra), prices remained stable at about Rs.7800 per MT, but were up by about 12% higher than last year’s prices. The prices for pearl Millet were about 8.8% lower than maize prices at the market yard.
Sorghum (Jowar) prices added 2.2% to the tally, moving to Rs.9290 per MT. The prices were only 2.6% higher than last year’s prices. Against maize the prices are about 8.3% higher at the market yard.
Barley prices have also moved up this week, adding 2.3% (Rs.300) to the tally. Barley was offered at the market yard at Rs.9300 per MT. The price remains 9.5% lower than last year’s prices. In the Spot market at Jaipur, prices were reported to be about 2.2% lower over last week to 10,650 per MT.
Corn prices on CBOT crashed by about 11% this week against last week values. Dec corn was traded at $133.22, while March corn at $ 139.44. One of the reasons attributed to the lower prices is a general erosion of demand of corn as cheap feed wheat from the Black Sea Region and Western Europe becomes available in the international markets. The lower prices from US will also put pressure on Indian corn exports.
Malting Barley prices in US in Great falls and Minneapolis were $198.8 and $215.29 per MT. There are reports that Saudi Arabia will reduce import subsidies on barley imports due to declining world prices. Saudi Arabia uses imported barley to feed animals, especially sheep, goat and camels, which are with the Bedouins (farmers). Western Australia is all set to produce a barley crop of 2.5 MMT, which is second only to the 2003-04 crop, but lower than had been expected in September.
GSM credit program from USDA
The United States Department of Agriculture (USDA) recently announced $3.5 billion in credit guarantees for the 2009 fiscal year. In these times of crisis when countries are facing liquidity crunch, the USDA’s Commodity Credit Corporation (CCC) administers export credit guarantees for commercial financing of U.S. agricultural exports.
The export Credit Guarantee Program (GSM-102) covers credit terms up to three years. GSM-102 underwrites credit extended by the private banking sector in the United States to approved foreign banks using letters of credit to pay for food and agricultural products sold to foreign buyers. GSM-102 mandates the overseas buyers to purchase the needed commodities from the United States.
The details about the program can be downloaded from the link below.
http://www.fas.usda.gov/excredits/english.html
CO Bank is the authorized bank in the US and details can be checked on its website.
http://www.cobank.com/
It may be noted that DDGS is a U.S. Commodity acceptable under this program.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, November 15, 2008
Coarse grain prices down further; Report indicates growth in Dairy in India
Coarse grain prices down further
Maize prices slumped this week on slow demand from the industry and adequate supplies in the market. Pries were down by 1.7% this week to RS.8030 per MT at the market yard. The prices though were higher by 17.7% against lat year. Maize prices in the futures market were stable similar to last week’s level. In the SPOT markets though the prices were reported to be lower by 2.3% in Davangere to Rs.8920 per MT, 0.34% in Karimnagar to Rs.8680 per MT and 1.54% in Nizamabad to Rs.8690 per MT.
Pearl Millet prices were up by 10.4% against last week to Rs.7830 per MT at the market yard. Against last year, the prices were higher by 17% and against maize the prices are lower by 2.5%.
Sorghum prices remained stable at Rs.9090 per MT at the mark yard. The prices were down by about 4% against last year. Against maize, the prices were up by 11.7%.
Barley prices were down by 6% against last week, reaching Rs.9000 per MT. Against last year the prices are down by 23%. In the SPOT market though the price was up by 1.35% to 10890 per MT and in the futures also prices gained by 0.27 – 0.5% against last week for Nov – Dec delivery.
Exports of maize are slow, even after the 5% incentive (on FOB value) and the prices at the market yard reaching 5% lower than the Minimum Support Price (MSP) set by the government.
CNF prices of corn to Asia have dropped considerably and this has also affected exports from India. Apart from the drop in commodity prices in US, the bulk freight rates to Asia have dropped considerably. The benchmark US Gulf-Japan rate was quoted at $29 per MT, lower than the Sept 2003 level. The PNW-Japan freight was quoted at $19 per MT.
On CBOT corn pries moved up slightly. For Dec delivery, corn closed at $149.67 per MT, about $1.89 per MT higher than last week’s close. For Mar delivery as well the prices were $1.42 per MT higher than last week at $156.29. FOB valued for corn US Gulf were close to $169 – 172 per MT.
Dried Distiller Grains with Solubles (DDGS) prices continue to slide in the US. Current delivery prices to South East Asia are about $220 – 230 per MT.
Report indicates growth in Dairy in India
Food and Agriculture Policy Research Institute (IFPRI) in its world report on dairy has estimated than milk production in India will grow by 2.28% per annum from 101.6 MMT in 2007 to reach 120.20 by 2015. In 2007, cow milk constituted 42% (42.796 MMT) of the total milk and in 2015, cow milk will constitute only 38.9% (46.75 MMT) of the milk and cow milk production will grow at 1.15% per annum. Buffalo milk, which constitutes 58% (58.811 MMT) of the total milk production currently, will contribute 61.1% (73.456 MMT) of the milk in 2015 and buffalo milk production is estimated to grow at 3.11%.
Fluid milk consumption is estimated to grow at 3.28% per annum to reach 54.959 MMT by 2015 from 43.422 MMT. Currently 42.8% of the milk is consumed as fluid milk and by 2015 this will be 45.72% of the total milk production in India. Use of milk for manufacturing/value addition will grow by 1.54% per annum by 2015 to reach 65.2 MMT (54%).
The average milk production of animals in India is estimated to go up from current 1123 liters to 1161 liters per annum.
Amit Sachdev
India Representative
US Grains Council
bluecross303@gmail.com
Maize prices slumped this week on slow demand from the industry and adequate supplies in the market. Pries were down by 1.7% this week to RS.8030 per MT at the market yard. The prices though were higher by 17.7% against lat year. Maize prices in the futures market were stable similar to last week’s level. In the SPOT markets though the prices were reported to be lower by 2.3% in Davangere to Rs.8920 per MT, 0.34% in Karimnagar to Rs.8680 per MT and 1.54% in Nizamabad to Rs.8690 per MT.
Pearl Millet prices were up by 10.4% against last week to Rs.7830 per MT at the market yard. Against last year, the prices were higher by 17% and against maize the prices are lower by 2.5%.
Sorghum prices remained stable at Rs.9090 per MT at the mark yard. The prices were down by about 4% against last year. Against maize, the prices were up by 11.7%.
Barley prices were down by 6% against last week, reaching Rs.9000 per MT. Against last year the prices are down by 23%. In the SPOT market though the price was up by 1.35% to 10890 per MT and in the futures also prices gained by 0.27 – 0.5% against last week for Nov – Dec delivery.
Exports of maize are slow, even after the 5% incentive (on FOB value) and the prices at the market yard reaching 5% lower than the Minimum Support Price (MSP) set by the government.
CNF prices of corn to Asia have dropped considerably and this has also affected exports from India. Apart from the drop in commodity prices in US, the bulk freight rates to Asia have dropped considerably. The benchmark US Gulf-Japan rate was quoted at $29 per MT, lower than the Sept 2003 level. The PNW-Japan freight was quoted at $19 per MT.
On CBOT corn pries moved up slightly. For Dec delivery, corn closed at $149.67 per MT, about $1.89 per MT higher than last week’s close. For Mar delivery as well the prices were $1.42 per MT higher than last week at $156.29. FOB valued for corn US Gulf were close to $169 – 172 per MT.
Dried Distiller Grains with Solubles (DDGS) prices continue to slide in the US. Current delivery prices to South East Asia are about $220 – 230 per MT.
Report indicates growth in Dairy in India
Food and Agriculture Policy Research Institute (IFPRI) in its world report on dairy has estimated than milk production in India will grow by 2.28% per annum from 101.6 MMT in 2007 to reach 120.20 by 2015. In 2007, cow milk constituted 42% (42.796 MMT) of the total milk and in 2015, cow milk will constitute only 38.9% (46.75 MMT) of the milk and cow milk production will grow at 1.15% per annum. Buffalo milk, which constitutes 58% (58.811 MMT) of the total milk production currently, will contribute 61.1% (73.456 MMT) of the milk in 2015 and buffalo milk production is estimated to grow at 3.11%.
Fluid milk consumption is estimated to grow at 3.28% per annum to reach 54.959 MMT by 2015 from 43.422 MMT. Currently 42.8% of the milk is consumed as fluid milk and by 2015 this will be 45.72% of the total milk production in India. Use of milk for manufacturing/value addition will grow by 1.54% per annum by 2015 to reach 65.2 MMT (54%).
The average milk production of animals in India is estimated to go up from current 1123 liters to 1161 liters per annum.
Amit Sachdev
India Representative
US Grains Council
bluecross303@gmail.com
Saturday, November 08, 2008
Coarse Grain prices Crash; Freight rates to go down further
Coarse Grain prices Crash
Following low demand and lower export possibilities from India, maize prices this week were down by 4.8% against last week. Prices averaged Rs.8170 per MT at the market yard, about 2.7% lower than the Minimum Support Price (MSP) announced by GOI. The prices were about 19% higher than last year at the same time.
In the futures as well as the spot markets, maize lost ground. In the futures market prices across the board were down against last week and reported to be lower than the MSP. For the near contract (NOV), prices were down by 2.6%. In the Spot markets of Nizamabad and Karimnagar maize prices slipped below Rs.9000 per MT level. While in Nizamabad prices slipped by about 3.1% against last week to Rs.8830 per MT, prices in Karimnagar were down by 3.6% to Rs.8700 per MT and in Davangere about 3.4% to Rs.9131 per MT.
Pearl Millet (Bajra) prices also slumped by 7.4% this week to Rs.7100 per MT, about 15.5% lower than the MSP. The prices are however higher than last year’s prices by 8.4% and 15% lower than Maize at the market yard.
Sorghum (Jowar) prices also crashed by about 10% this week to Rs.9090 per MT. The prices are about 7% lower than last years sorghum prices. The prices are about 10% higher than maize.
Barley prices showed some recovery and were up by 3.7% against last week to Rs.9600 per MT. but against last year the prices were down by 13.3%.
On Thursday, corn on CBOT closed at $148 per MT, close to Oct 25 close and losing 6.3% over Last Friday’s close. CBOT on Friday close at $147.7 per MT, about 6.5% lower over last week for Dec delivery. Mar delivery was also down by 6.1% to $154.87 per MT. With these prices and freights much lower, US corn though is much cheaper, but there is cheaper corn and other feed ingredient (feed wheat) originating from Black Sea region, which could be delivered to SEA region for less than $170. In addition, Brazilian corn is being sold in the market at $205 (CNF) SEA region. This could be another reason attributed to lower corn exports from India this year.
Traders await the WASDE report on Monday. Pre-report projections for U.S. corn production are for 306.47 MMT compared to USDA’s revised October estimate of 305.63 MMT. U.S. corn ending stocks were estimated at 30.22 MMT compared to USDA’s revised October estimate of 27.63 MMT. Domestic feed and industrial usage is also expected to be cut in Monday’s report, due to a potential slow down in ethanol production. Vera Sun, one of this country’s largest ethanol companies filed for bankruptcy protection this week (14 plants in 8 states).
Freight rates to go down further
Reports indicate that the Baltic Dry Index which measures shipping costs in commodities is down by 93% to 829 points from it peak in May 2008. In five months an industry that had insufficient capacity now has idle ships.
Reports indicate that at least 20% of the vessels that haul coat and ore are now at port awaiting cargoes. Steel makers have cut output and there is a credit squeeze, which has also hot deliveries.
The crude oil prices correction to less than $63 per barrel has also brought down the freight rates from India to US and Europe by about 35%. Now one can ship a 20 foot container (TEU) for $700 to Europe and $1600 to US.
Following low demand and lower export possibilities from India, maize prices this week were down by 4.8% against last week. Prices averaged Rs.8170 per MT at the market yard, about 2.7% lower than the Minimum Support Price (MSP) announced by GOI. The prices were about 19% higher than last year at the same time.
In the futures as well as the spot markets, maize lost ground. In the futures market prices across the board were down against last week and reported to be lower than the MSP. For the near contract (NOV), prices were down by 2.6%. In the Spot markets of Nizamabad and Karimnagar maize prices slipped below Rs.9000 per MT level. While in Nizamabad prices slipped by about 3.1% against last week to Rs.8830 per MT, prices in Karimnagar were down by 3.6% to Rs.8700 per MT and in Davangere about 3.4% to Rs.9131 per MT.
Pearl Millet (Bajra) prices also slumped by 7.4% this week to Rs.7100 per MT, about 15.5% lower than the MSP. The prices are however higher than last year’s prices by 8.4% and 15% lower than Maize at the market yard.
Sorghum (Jowar) prices also crashed by about 10% this week to Rs.9090 per MT. The prices are about 7% lower than last years sorghum prices. The prices are about 10% higher than maize.
Barley prices showed some recovery and were up by 3.7% against last week to Rs.9600 per MT. but against last year the prices were down by 13.3%.
On Thursday, corn on CBOT closed at $148 per MT, close to Oct 25 close and losing 6.3% over Last Friday’s close. CBOT on Friday close at $147.7 per MT, about 6.5% lower over last week for Dec delivery. Mar delivery was also down by 6.1% to $154.87 per MT. With these prices and freights much lower, US corn though is much cheaper, but there is cheaper corn and other feed ingredient (feed wheat) originating from Black Sea region, which could be delivered to SEA region for less than $170. In addition, Brazilian corn is being sold in the market at $205 (CNF) SEA region. This could be another reason attributed to lower corn exports from India this year.
Traders await the WASDE report on Monday. Pre-report projections for U.S. corn production are for 306.47 MMT compared to USDA’s revised October estimate of 305.63 MMT. U.S. corn ending stocks were estimated at 30.22 MMT compared to USDA’s revised October estimate of 27.63 MMT. Domestic feed and industrial usage is also expected to be cut in Monday’s report, due to a potential slow down in ethanol production. Vera Sun, one of this country’s largest ethanol companies filed for bankruptcy protection this week (14 plants in 8 states).
Freight rates to go down further
Reports indicate that the Baltic Dry Index which measures shipping costs in commodities is down by 93% to 829 points from it peak in May 2008. In five months an industry that had insufficient capacity now has idle ships.
Reports indicate that at least 20% of the vessels that haul coat and ore are now at port awaiting cargoes. Steel makers have cut output and there is a credit squeeze, which has also hot deliveries.
The crude oil prices correction to less than $63 per barrel has also brought down the freight rates from India to US and Europe by about 35%. Now one can ship a 20 foot container (TEU) for $700 to Europe and $1600 to US.
Amit Sachdev
India Represenative
U S Grains Council
bluecross303@gmail.com
Saturday, November 01, 2008
Maize Sorghum prices up, Bajra tumbles; USDA revises production estimates; Ethanol Production and usage in USA
Maize Sorghum prices up, Bajra tumbles
Maize prices moved up over last week by 6.5% to average at Rs.8585 per MT at the market yard. One of the reasons is the lower delivery this week due to the festival week (Diwali, the festival of lights was celebrated this week all over the country).. The price of maize was about 22.8% higher than last year at the end of the October. Average price for October 2008 was averaged at Rs.8228 per MT, higher by 25.6% over last year’s October average. The price though is about 3.25% lower than Sept 2008 average. The delivered prices were noted at Rs.10,500 per MT at some locations.
In the futures market, maize was up by about Rs.200 per MT over last week to Rs.8600 levels for Nov 2008 delivery, Also it added Rs.100 to reach Rs.8360 per MT for Dec delivery and remained similar at the last weeks level for Jan/Feb deliveries. In the spot markets, Maize was up by about Rs.100 per MT in Nizamabad over last week to Rs.9100 and lsot Rs.100 per Mt to level at Rs.9460 per Mt at Davangere. In Karimnagar the value was stable at Rs.9040 per MT.
Industry estimates and working done based in discussions with end user associations, seed companies suggest that by 2020 the requirement of the end users (Poultry, starch, livestock feed, food and brewery etc) will be about 30.73 MMT. This is without taking into consideration any exports. The growth in demand is expected to increase by 5-6%, while the production may increase by 4-5%. In 2007/08 the supply increased by 27.88% over 2006/07, which was abnormal. It may be touch and go every year as the demand is likely to pick up much faster.
Pearl Millet (Bajra) prices were down this week by 3.7% to average at 7670 per MT at the market yard. The price is about 20% higher than last year value. The prices are lower than maize by 12%. The average price for October 2008 was Rs.7502 per M, about 17.5% higher than Octber 2007 avearge.
Sorghum (Jowar) prices were up this week by 8.7% against last week, to average at Rs.10102 per MT, about 5.6% higher than last year. The price was also higher than maize by 15%. The October 2008 average was Rs.9559 per MT, about 3.7% higher than October 2007 average.
Barley prices have remained stable and delivered prices to the malt companies in Haryana are seen at Rs.11,500 MT. Nov/Dec delivery was reported at Rs10,900 per MT and in the SPOT market at Jaipur the price was quoted at Rs.10,800 per MT.
In the US, corn on CBOT was up for Dec 2008 and Mar 2009 deliveries by 7.8% over last week’s close to reach $158.02 and $165.03 per MT levels. With freight rates at the lowest, US corn would be a cheapest buy in South East Asia and Middle East markets.
USDA revises production estimates
United States Department of Agriculture on Oct 28, 2008 released a corrected U.S. Crop Production report. USDA is now projecting the 2008/2009 corn harvest at 305.5 MMT. Feed and residual use is projected at 134.6 MMT about 8.7% lower than the Oct 10 forecast. Corn exports are forecast at 49 MMT in the new report. USDA has revised the report for the first time and the area under corn (sown and harvested) has been brought down by 1 million acres and the national average yield has also been trimmed by 3.90 tons/acre.
While the forecast for export of corn has been reduced, there is likely hood that more and more countries import more of DDGS to fulfill the needs of energy and protein in the rations. Already China and Taiwan have started scouting for better deals for DDGS. Other countries who will increase DDGS usage are Vietnam and Indonesia.
Ethanol Production and usage in USA
The Renewable Fuels Standard (RFS) mandates use of 56.7 billion liters of ethanol by 2015. The mandate also states that all of gasoline produced in US will be blended with 10% ethanol by 2015.
In 2008, U.S. is estimated to use 521 billion liters of gasoline (down from 536 billion liters in 2007) and approximately 34 billion liters of U.S.-produced ethanol plus another 3 billion liters of imported ethanol. Since February 2008, the price of ethanol has been less than the price of gasoline. U.S. Environmental Protection Agency (EPA) regulations allow blended fuel to contain up to 10% ethanol. California regulations allow up to 5.7% blends.
Maize prices moved up over last week by 6.5% to average at Rs.8585 per MT at the market yard. One of the reasons is the lower delivery this week due to the festival week (Diwali, the festival of lights was celebrated this week all over the country).. The price of maize was about 22.8% higher than last year at the end of the October. Average price for October 2008 was averaged at Rs.8228 per MT, higher by 25.6% over last year’s October average. The price though is about 3.25% lower than Sept 2008 average. The delivered prices were noted at Rs.10,500 per MT at some locations.
In the futures market, maize was up by about Rs.200 per MT over last week to Rs.8600 levels for Nov 2008 delivery, Also it added Rs.100 to reach Rs.8360 per MT for Dec delivery and remained similar at the last weeks level for Jan/Feb deliveries. In the spot markets, Maize was up by about Rs.100 per MT in Nizamabad over last week to Rs.9100 and lsot Rs.100 per Mt to level at Rs.9460 per Mt at Davangere. In Karimnagar the value was stable at Rs.9040 per MT.
Industry estimates and working done based in discussions with end user associations, seed companies suggest that by 2020 the requirement of the end users (Poultry, starch, livestock feed, food and brewery etc) will be about 30.73 MMT. This is without taking into consideration any exports. The growth in demand is expected to increase by 5-6%, while the production may increase by 4-5%. In 2007/08 the supply increased by 27.88% over 2006/07, which was abnormal. It may be touch and go every year as the demand is likely to pick up much faster.
Pearl Millet (Bajra) prices were down this week by 3.7% to average at 7670 per MT at the market yard. The price is about 20% higher than last year value. The prices are lower than maize by 12%. The average price for October 2008 was Rs.7502 per M, about 17.5% higher than Octber 2007 avearge.
Sorghum (Jowar) prices were up this week by 8.7% against last week, to average at Rs.10102 per MT, about 5.6% higher than last year. The price was also higher than maize by 15%. The October 2008 average was Rs.9559 per MT, about 3.7% higher than October 2007 average.
Barley prices have remained stable and delivered prices to the malt companies in Haryana are seen at Rs.11,500 MT. Nov/Dec delivery was reported at Rs10,900 per MT and in the SPOT market at Jaipur the price was quoted at Rs.10,800 per MT.
In the US, corn on CBOT was up for Dec 2008 and Mar 2009 deliveries by 7.8% over last week’s close to reach $158.02 and $165.03 per MT levels. With freight rates at the lowest, US corn would be a cheapest buy in South East Asia and Middle East markets.
USDA revises production estimates
United States Department of Agriculture on Oct 28, 2008 released a corrected U.S. Crop Production report. USDA is now projecting the 2008/2009 corn harvest at 305.5 MMT. Feed and residual use is projected at 134.6 MMT about 8.7% lower than the Oct 10 forecast. Corn exports are forecast at 49 MMT in the new report. USDA has revised the report for the first time and the area under corn (sown and harvested) has been brought down by 1 million acres and the national average yield has also been trimmed by 3.90 tons/acre.
While the forecast for export of corn has been reduced, there is likely hood that more and more countries import more of DDGS to fulfill the needs of energy and protein in the rations. Already China and Taiwan have started scouting for better deals for DDGS. Other countries who will increase DDGS usage are Vietnam and Indonesia.
Ethanol Production and usage in USA
The Renewable Fuels Standard (RFS) mandates use of 56.7 billion liters of ethanol by 2015. The mandate also states that all of gasoline produced in US will be blended with 10% ethanol by 2015.
In 2008, U.S. is estimated to use 521 billion liters of gasoline (down from 536 billion liters in 2007) and approximately 34 billion liters of U.S.-produced ethanol plus another 3 billion liters of imported ethanol. Since February 2008, the price of ethanol has been less than the price of gasoline. U.S. Environmental Protection Agency (EPA) regulations allow blended fuel to contain up to 10% ethanol. California regulations allow up to 5.7% blends.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, October 25, 2008
Mixed bag for coarse grain prices in India, prices in US tumble; Corn as health food; More DDGS from US corn ethanol industry
Mixed bag for coarse grain prices in India, prices in US tumble
Maize prices are stable at the market yard at Rs.8000 – 8100 per MT, The prices are about 20% higher than last year prices. The above are average prices, pan India, but in some production areas delivered prices are ranging from Rs.10,000 – 10500 per MT. With these prices in the local markets, export of corn may not be feasible, but the prices are unlikely to go down much and may hover close to the MSP value of Rs.8400 per MT. Maize at the NCDEX was quoting at prices Rs.8250 – 8425 per MT, while in the SPOT markets the value was ranging from Rs.9050 at Karimnagar and Rs.9530 at Davangere.
Pearl Millet (Bajra) prices were up this week by 11% and RS.7960 per MT and also are up 19.2% against maize. The differential with maize is only 1.3%.
Sorghum (Jowar) prices went down by 1% to Rs.9300 per MT at the market yard. And are 4.5% lower than last year. Possibly this is the first time sorghum prices are lower than last year. Against maize, the prices are higher by 13.2%.
Barley prices were also down by 5.2% to level at Rs.9250 per MT and are down by 18.2% against last year.
Corn prices were again down this week to $146.68 per MT for Dec 08 and 152.98 per MT for Mar 09. The prices are lower than last week’s close by about 7.5%. This would also mean that the corn delivered to SEA markets would be close to $220 and local corn is delivered in India at some feed mills at $210 per MT (Dollar has breached the Rs.50 per dollar mark).
Corn as health food
A research conducted jointly by North American Millers’ Association (NAMA) and the National Corn Growers Association (NCGA) at the Department of Food Science, Purdue University in West Lafayette, Indiana, U.S. has found that milled corn products are a good source of “Carotenoids”, the consumption of which is associated with decreased risk of several chronic diseases including cancer, cardiovascular disorders and age-related macular degeneration.
Carotenoids are a class of natural fat-soluble pigments found principally in plants, algae, and photosynthetic bacteria, where they play a critical role in the photosynthetic process.
In human beings, carotenoids can serve several important functions. The most widely studied and well-understood nutritional role for carotenoids is their provitamin A activity.
Carotenoids also play an important potential role in human health by acting as biological antioxidants, protecting cells and tissues from the damaging effects of free radicals and singlet oxygen.
The research found that:
1. Milled corn products are a good source of carotenoids, containing 90-350 micrograms per 100 grams food.
2. Corn carotenoids are highly bioaccessible (>50%). Bioaccessibility is a solid estimate of bioavailability, which is the amount of nutrients available to the body after digestion, researchers noted. The carotenoids can be found from corn-based foods, including corn bread, wet cooked grits and extruded products.
3. Absolute bioaccessibility is generally proportional to starting food content.
4. Relative bioaccessibility is slightly higher than other fruits and vegetables.
5. The presence of added fiber (typical negative effector) from whole grain does not appear to limit carotenoid bioaccessibility.
Researchers also noted the following opportunities milled corn products showed for food design:
a. Delivery of a biological antioxidant.
b. Easily formulated into snacks, cereals and other foodstuffs.
c. Bioaccessibility is high in model food processing systems.
Adopted from www.world-grain.com)
More DDGS from US corn ethanol industry
New reports indicate that the U.S. ethanol industry will continue its growth trajectory in 2009 as well and produce 31.3 MMT of DDGS in the marketing year 2008/09 which can be used by the animal feed industry. About 22 .8 million tons of DDGS were available for global use in 2007/2008 marketing year (Oct – Sept). In 2008, ethanol production was 35.2 billion liters of ethanol, which is likely to grow to 45 billion liters by 2009.
Almost all the South East Asian countries are importing DDGS and are using it effectively. Until now Thailand has imported 102,000 MT, thanks to a robust growth in the poultry industry by 8%. A large part of the growth in the poultry industry can be attributed to strong demand from Japan and Europe.
Other countries in the region, which are importing DDGS and are using it in poultry rations include Philippines 64,000 MT; Vietnam 80,000 MT and Indonesia 70,000 MT.
Maize prices are stable at the market yard at Rs.8000 – 8100 per MT, The prices are about 20% higher than last year prices. The above are average prices, pan India, but in some production areas delivered prices are ranging from Rs.10,000 – 10500 per MT. With these prices in the local markets, export of corn may not be feasible, but the prices are unlikely to go down much and may hover close to the MSP value of Rs.8400 per MT. Maize at the NCDEX was quoting at prices Rs.8250 – 8425 per MT, while in the SPOT markets the value was ranging from Rs.9050 at Karimnagar and Rs.9530 at Davangere.
Pearl Millet (Bajra) prices were up this week by 11% and RS.7960 per MT and also are up 19.2% against maize. The differential with maize is only 1.3%.
Sorghum (Jowar) prices went down by 1% to Rs.9300 per MT at the market yard. And are 4.5% lower than last year. Possibly this is the first time sorghum prices are lower than last year. Against maize, the prices are higher by 13.2%.
Barley prices were also down by 5.2% to level at Rs.9250 per MT and are down by 18.2% against last year.
Corn prices were again down this week to $146.68 per MT for Dec 08 and 152.98 per MT for Mar 09. The prices are lower than last week’s close by about 7.5%. This would also mean that the corn delivered to SEA markets would be close to $220 and local corn is delivered in India at some feed mills at $210 per MT (Dollar has breached the Rs.50 per dollar mark).
Corn as health food
A research conducted jointly by North American Millers’ Association (NAMA) and the National Corn Growers Association (NCGA) at the Department of Food Science, Purdue University in West Lafayette, Indiana, U.S. has found that milled corn products are a good source of “Carotenoids”, the consumption of which is associated with decreased risk of several chronic diseases including cancer, cardiovascular disorders and age-related macular degeneration.
Carotenoids are a class of natural fat-soluble pigments found principally in plants, algae, and photosynthetic bacteria, where they play a critical role in the photosynthetic process.
In human beings, carotenoids can serve several important functions. The most widely studied and well-understood nutritional role for carotenoids is their provitamin A activity.
Carotenoids also play an important potential role in human health by acting as biological antioxidants, protecting cells and tissues from the damaging effects of free radicals and singlet oxygen.
The research found that:
1. Milled corn products are a good source of carotenoids, containing 90-350 micrograms per 100 grams food.
2. Corn carotenoids are highly bioaccessible (>50%). Bioaccessibility is a solid estimate of bioavailability, which is the amount of nutrients available to the body after digestion, researchers noted. The carotenoids can be found from corn-based foods, including corn bread, wet cooked grits and extruded products.
3. Absolute bioaccessibility is generally proportional to starting food content.
4. Relative bioaccessibility is slightly higher than other fruits and vegetables.
5. The presence of added fiber (typical negative effector) from whole grain does not appear to limit carotenoid bioaccessibility.
Researchers also noted the following opportunities milled corn products showed for food design:
a. Delivery of a biological antioxidant.
b. Easily formulated into snacks, cereals and other foodstuffs.
c. Bioaccessibility is high in model food processing systems.
Adopted from www.world-grain.com)
More DDGS from US corn ethanol industry
New reports indicate that the U.S. ethanol industry will continue its growth trajectory in 2009 as well and produce 31.3 MMT of DDGS in the marketing year 2008/09 which can be used by the animal feed industry. About 22 .8 million tons of DDGS were available for global use in 2007/2008 marketing year (Oct – Sept). In 2008, ethanol production was 35.2 billion liters of ethanol, which is likely to grow to 45 billion liters by 2009.
Almost all the South East Asian countries are importing DDGS and are using it effectively. Until now Thailand has imported 102,000 MT, thanks to a robust growth in the poultry industry by 8%. A large part of the growth in the poultry industry can be attributed to strong demand from Japan and Europe.
Other countries in the region, which are importing DDGS and are using it in poultry rations include Philippines 64,000 MT; Vietnam 80,000 MT and Indonesia 70,000 MT.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, October 18, 2008
Commodity prices low, export of corn open
Commodity prices low, export of corn open
Corn prices this week were down by about 2% to average at Rs.8100 per MT at the market yard. This is about 3.5% lower than the MSP announced by GOI. As against last year the price was 20% higher, giving a much higher return to the farmer. In the futures market the maize was in the range Rs.8340 per MT for Feb 2009 delivery, while for near month Oct 2008, the price was Rs.9170 per MT. In Nizamabad the prices were ruling at Rs.8982, while at Karimnagar and Davangere the prices were Rs.8975 and Rs.9535 pet MT.
Pearl millet prices also went down by about 3.3% averaging at RS.7200 per MT. This is also 14.3% lower than the MSP. Against last year, though the prices were higher by 13%. Against maize the pearl millet prices were lower by 12.6%.
Sorghum prices were up by 4.4% this week to average at Rs.9370 per MT at the market yard. Against last year the prices are higher by 6.6% and also against maize the prices are higher by 13.7%.
Barley prices moved up by 2% to average Rs.9800 per MT at the market yard and against last year the prices were down by 6.2%.
Corn prices on CBOT were also down this week to $158.65, 2% lower than last week’s close of $161. On Thursday, corn was all time low at $151.40 per MT.
All eyes were on India and the export ban notification lapsed on the midnight of Oct 15,2 008 and export of corn was open from Oct 16, 2008. The question though is, will it be feasible to export from India, when the US prices are all time low and FOB US gulf would be in the range of $185-187 per MT and delivery to South East Asia can be from a low of $230 to a high of $240. Indian corn prices FOB eastern ports would be close to $205 - 208 and delivered would also be in the same range as US corn. Earlier Indian corn has been sold at a discount. Bangladesh, Nepal and Sri lanka and natural buyers for the Indian corn and will buy, it is the other countries which may not jump on the Indian market soon.
The production of maize is down to 13.04 MMT in this Khariff season against last year’s 15.15 MMT and the prices are expected to remain higher than last year. Export of a 500 TMT can not be ruled out though.
Corn prices this week were down by about 2% to average at Rs.8100 per MT at the market yard. This is about 3.5% lower than the MSP announced by GOI. As against last year the price was 20% higher, giving a much higher return to the farmer. In the futures market the maize was in the range Rs.8340 per MT for Feb 2009 delivery, while for near month Oct 2008, the price was Rs.9170 per MT. In Nizamabad the prices were ruling at Rs.8982, while at Karimnagar and Davangere the prices were Rs.8975 and Rs.9535 pet MT.
Pearl millet prices also went down by about 3.3% averaging at RS.7200 per MT. This is also 14.3% lower than the MSP. Against last year, though the prices were higher by 13%. Against maize the pearl millet prices were lower by 12.6%.
Sorghum prices were up by 4.4% this week to average at Rs.9370 per MT at the market yard. Against last year the prices are higher by 6.6% and also against maize the prices are higher by 13.7%.
Barley prices moved up by 2% to average Rs.9800 per MT at the market yard and against last year the prices were down by 6.2%.
Corn prices on CBOT were also down this week to $158.65, 2% lower than last week’s close of $161. On Thursday, corn was all time low at $151.40 per MT.
All eyes were on India and the export ban notification lapsed on the midnight of Oct 15,2 008 and export of corn was open from Oct 16, 2008. The question though is, will it be feasible to export from India, when the US prices are all time low and FOB US gulf would be in the range of $185-187 per MT and delivery to South East Asia can be from a low of $230 to a high of $240. Indian corn prices FOB eastern ports would be close to $205 - 208 and delivered would also be in the same range as US corn. Earlier Indian corn has been sold at a discount. Bangladesh, Nepal and Sri lanka and natural buyers for the Indian corn and will buy, it is the other countries which may not jump on the Indian market soon.
The production of maize is down to 13.04 MMT in this Khariff season against last year’s 15.15 MMT and the prices are expected to remain higher than last year. Export of a 500 TMT can not be ruled out though.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, October 11, 2008
Coarse grain prices move up, though slightly; USDA predicts higher world and US corn production
Coarse grain prices move up, though slightly
Maize prices in the market yard averaged 1.2% higher than last week to Rs.8242 per MT. Though the prices are lower than the Minimum Support Price announced by GOI. The price was also higher than last year’s price by 21.5%. In the future markets the price ranged from Rs.8350 – 8540 per MT, which to many farmers is not a remunerative value. In the spot markets though the higher pries was quoted in Davangere (Rs.10032 per MT), while the lowest in Nizamabad (Rs.9006 per MT)
Pearl Millet (Bajra) prices also moved up by 2% to Rs.7423 per MT, which is 11.6% lower then the MSP announced by GOI. The prices are 17% higher than last year and about 11% lower than maize in the market yard.
Sorghum (Jowar) prices have slid by 10.75% this week to Rs.8975 per MT at the market yard. And the prices were also 4.7% lower than last year’s prices. Against maize the prices are higher by 8.2%.
Barley prices moved up by 2.86% to Rs.9586 per MT at the market yard. The prices were down by 4.1% against last year.
Corn prices in the US tumbled again this week. Prices on CBOT closed at $ 160.70 per MT for Dec delivery, while for the march the prices tanked to $167.55 per MT. The markets closed about 10% lower than last week.
USDA predicts higher world and US corn production
USDA’s WASDE report, of Oct 10, 2008 for 2008/09 has projected a higher corn crop of 309.89 MMT in the new estimates against Sept estimates of 306.65 MMT. One of reasons attributed in a good rainfall in September in the Mideast of the country. The new estimates also project an increase in the ending stocks to 29.31 MMT against last month’s estimates of 25.86 MMT. The report also projects increase in corn use in feed to 135.89 MMT, but a decrease in food, seed residual use to 135.50 MMT , mostly owing to lower corn use for ethanol production, which is expected to be 101.6 MMT against last month’s estimate of 104.1 MMT.
As per a report published by the Brazilian Ministry of Agriculture, soybean production in Brazil is projected to rise to 61.3 MMT for the 2008/09 crop, up from last year’s 60.1 MMT. Area under soybean is likely to go up at the cost of corn sowing. Area under corn in Brazil is likely t0 14.4 million hectares, slightly lower than 14.7 million hectares to produce 55 – 56 MMT of corn, lower than last year’s production of 58.6 MMT. The average production from corn in Brazil is expected to be 4.06 tons/hac, almost double the Indian productivity. As per the USDA report, the ending stocks of corn in Braxil are expected to be lower at 9.24 MMT against last month’s estimate of 14.95 MMT and the total use is expected to be 40 MMT against 38 MMT.
As the input costs have soared as in other countries, farmers are making judicious use of inputs. The fact is that it is cheaper to sow soybean than corn, and a higher area does not guarantee a higher production as farmers may not apply enough fertilizers or pesticides due to higher expense.
The report also projects that the exports from Argentina will be lower by 2 MMT to 11 MMT and feed use in Argentina is also expected to increase to 5.6 MMT against 3.8 MMT projected last month.
The world’s corn production in 2008/09 is estimated to increase to 785.25 MMT and feed use increased to 492.34 MMT. The ending stocks though are expected to be 107.76 MMT, down by 2.18 MMT against last month’s estimates.
Maize prices in the market yard averaged 1.2% higher than last week to Rs.8242 per MT. Though the prices are lower than the Minimum Support Price announced by GOI. The price was also higher than last year’s price by 21.5%. In the future markets the price ranged from Rs.8350 – 8540 per MT, which to many farmers is not a remunerative value. In the spot markets though the higher pries was quoted in Davangere (Rs.10032 per MT), while the lowest in Nizamabad (Rs.9006 per MT)
Pearl Millet (Bajra) prices also moved up by 2% to Rs.7423 per MT, which is 11.6% lower then the MSP announced by GOI. The prices are 17% higher than last year and about 11% lower than maize in the market yard.
Sorghum (Jowar) prices have slid by 10.75% this week to Rs.8975 per MT at the market yard. And the prices were also 4.7% lower than last year’s prices. Against maize the prices are higher by 8.2%.
Barley prices moved up by 2.86% to Rs.9586 per MT at the market yard. The prices were down by 4.1% against last year.
Corn prices in the US tumbled again this week. Prices on CBOT closed at $ 160.70 per MT for Dec delivery, while for the march the prices tanked to $167.55 per MT. The markets closed about 10% lower than last week.
USDA predicts higher world and US corn production
USDA’s WASDE report, of Oct 10, 2008 for 2008/09 has projected a higher corn crop of 309.89 MMT in the new estimates against Sept estimates of 306.65 MMT. One of reasons attributed in a good rainfall in September in the Mideast of the country. The new estimates also project an increase in the ending stocks to 29.31 MMT against last month’s estimates of 25.86 MMT. The report also projects increase in corn use in feed to 135.89 MMT, but a decrease in food, seed residual use to 135.50 MMT , mostly owing to lower corn use for ethanol production, which is expected to be 101.6 MMT against last month’s estimate of 104.1 MMT.
As per a report published by the Brazilian Ministry of Agriculture, soybean production in Brazil is projected to rise to 61.3 MMT for the 2008/09 crop, up from last year’s 60.1 MMT. Area under soybean is likely to go up at the cost of corn sowing. Area under corn in Brazil is likely t0 14.4 million hectares, slightly lower than 14.7 million hectares to produce 55 – 56 MMT of corn, lower than last year’s production of 58.6 MMT. The average production from corn in Brazil is expected to be 4.06 tons/hac, almost double the Indian productivity. As per the USDA report, the ending stocks of corn in Braxil are expected to be lower at 9.24 MMT against last month’s estimate of 14.95 MMT and the total use is expected to be 40 MMT against 38 MMT.
As the input costs have soared as in other countries, farmers are making judicious use of inputs. The fact is that it is cheaper to sow soybean than corn, and a higher area does not guarantee a higher production as farmers may not apply enough fertilizers or pesticides due to higher expense.
The report also projects that the exports from Argentina will be lower by 2 MMT to 11 MMT and feed use in Argentina is also expected to increase to 5.6 MMT against 3.8 MMT projected last month.
The world’s corn production in 2008/09 is estimated to increase to 785.25 MMT and feed use increased to 492.34 MMT. The ending stocks though are expected to be 107.76 MMT, down by 2.18 MMT against last month’s estimates.
Amit Sachdev
India Represenative
US Grains Council
bluecross303@gmail.com
Saturday, October 04, 2008
Mixed reactions in commodities; Results - DDGS can be used in poultry and dairy rations
Mixed reactions in commodities
Maize prices were down by 4.3% this week to Rs.8140 per MT at the market yard. The price though is higher than last year by 17.7%. The prices are ruling at lower than the Minimum Support Prices (MSP) of Rs.8400 per MT declared by GOI for the new crop, which has started to arrive in the market in almost all the markets. In the future markets the prices were little higher than the MSP and were recorded in the range of Rs.8630 – Rs.8880 per MT for the period Oct 2008 – Jan 2009. In the SPOT markets on Karimnagar the prices were Rs.9621, Nizamabad recorded Rs.9136, while at Davangere the price was Rs.10116 per MT.
Pearl Millet (Bajra) prices were up by 2.7% this week to Rs.7280 per MT at the market yard. The price average lower than the MSP of Rs.8400. The price were up by 5.1% this time against last year prices and were lower than maize by about 12%.
Sorghum (Jowar) prices were up by 10.6% this week to level at Rs.10057 per MT at the market yard. The prices were higher than the MSP of Rs.8400 – 8600 per MT declared by GOI. Against last year the prices were higher by 13.5% and are also higher than maize by about 19%.
Barley prices dipped by 3% this week to Rs.9320 per MT at the market yard and were lower than 13.8% against last year. Probably barley is the only crop were prices have declined over last year.
Corn prices fell by 15-17% on CBOT on Friday against last week’s close. Prices for Dec 2008/Mar 2009 delivery were recorded at $178 – 185 per MT. The prices had reached a high of $315 per MT on CBOT in June 2008.
Results - DDGS can be used in poultry and dairy rations
Trials have shown that DDGS, the by-product of the ethanol industry can be used effectively in poultry and dairy cattle feeds. Trials conducted in Egypt and Japan have shown that DDGS in poultry ration upto 10% has had no negative affect on the efficiency of production. In addition use of DDGS in dairy buffalo rations has been effective in reducing the impact of heat stress on milk production in Egypt, as per Dr.Hussain Soliman, Country Director for US Grains Council in Egypt. It is not only the production efficiency, in addition lower feed costs convinced the feed manufacturers to use the product in the feed and government of Egypt recognizing its as a valuable feed ingredient. Egypt has so far imported 46,200 MT of U.S. DDGS in 2008 and it is expected to import more as the yer comes to the close.
Last week’s the CNF prices of DDGS to destinations in South East Asia were $283 – 285 per MT. At the current prices the product can be use din poultry rations in India at 5-7%.
Maize prices were down by 4.3% this week to Rs.8140 per MT at the market yard. The price though is higher than last year by 17.7%. The prices are ruling at lower than the Minimum Support Prices (MSP) of Rs.8400 per MT declared by GOI for the new crop, which has started to arrive in the market in almost all the markets. In the future markets the prices were little higher than the MSP and were recorded in the range of Rs.8630 – Rs.8880 per MT for the period Oct 2008 – Jan 2009. In the SPOT markets on Karimnagar the prices were Rs.9621, Nizamabad recorded Rs.9136, while at Davangere the price was Rs.10116 per MT.
Pearl Millet (Bajra) prices were up by 2.7% this week to Rs.7280 per MT at the market yard. The price average lower than the MSP of Rs.8400. The price were up by 5.1% this time against last year prices and were lower than maize by about 12%.
Sorghum (Jowar) prices were up by 10.6% this week to level at Rs.10057 per MT at the market yard. The prices were higher than the MSP of Rs.8400 – 8600 per MT declared by GOI. Against last year the prices were higher by 13.5% and are also higher than maize by about 19%.
Barley prices dipped by 3% this week to Rs.9320 per MT at the market yard and were lower than 13.8% against last year. Probably barley is the only crop were prices have declined over last year.
Corn prices fell by 15-17% on CBOT on Friday against last week’s close. Prices for Dec 2008/Mar 2009 delivery were recorded at $178 – 185 per MT. The prices had reached a high of $315 per MT on CBOT in June 2008.
Results - DDGS can be used in poultry and dairy rations
Trials have shown that DDGS, the by-product of the ethanol industry can be used effectively in poultry and dairy cattle feeds. Trials conducted in Egypt and Japan have shown that DDGS in poultry ration upto 10% has had no negative affect on the efficiency of production. In addition use of DDGS in dairy buffalo rations has been effective in reducing the impact of heat stress on milk production in Egypt, as per Dr.Hussain Soliman, Country Director for US Grains Council in Egypt. It is not only the production efficiency, in addition lower feed costs convinced the feed manufacturers to use the product in the feed and government of Egypt recognizing its as a valuable feed ingredient. Egypt has so far imported 46,200 MT of U.S. DDGS in 2008 and it is expected to import more as the yer comes to the close.
Last week’s the CNF prices of DDGS to destinations in South East Asia were $283 – 285 per MT. At the current prices the product can be use din poultry rations in India at 5-7%.
Amit Sachdev
India Representative
U S Grains Council
bluecros303@gmail.com
Monday, September 29, 2008
Commodity prices slump; Indian corn production to be lower
Commodity prices slump
Coarse grain prices across the board slumped in India this week. Maize prices were down by 0.6% to reach Rs.8500 per MT at the market yard. Average for Sept 08 was Rs.8500 per MT, while for Sept 07, the prices were Rs.6871 per Mt at the market yard. Against last year average the prices are higher by 23.7%.
Pearl Millet (Bajra) prices also were down by 7.2% to level at Rs.7090 per MT. Against maize the prices are lower by 20%. Average for Sept 08, was Rs.7138 per MT, about 9.5% higher than, Sept 07 rates of Rs.6510 per MT.
Sorghum (Jowar) prices were down by 3.8% this week to Rs.9090 per Mt at the market yard. Against maize the prices are higher by 6.4%. Prices averaged Rs.9673 per Mt in Sept 08,, 3.77% higher than Sept 07 rate of Rs.9322 per MT.
Barley prices were also down by 0.5% to reach 9600 per MT. Average price for Sept 08 at the market yard was Rs.9500 per MT
Corn prices in the US are stable. Corn on CBOT closed at $213.77 for Dec 2008, while for March 2009, the value was $220.85 per MT. Indicative prices for OCT – Feb delivery (FOB) US Gulf was $233- 240 per MT, while PNW values were close to $272 – 275 per MT.
Freight markets are down considerably since last week. US Gulf – Japan freight is down to $65 per MT against $91 last week. Similarly PNW – Japan freight is down to $43 per MT against $60 last week.
DDGS prices have come down in relation to corn prices this week. FOB US Gulf prices was indicated at $197 per MT, while FOB PNW was $213. Prices of a 40 foot container delivered to Thailand was indicated at $283 per MT.
Indian corn production to be lower
The latest estimates from GOI predict a 15.5% lower corn crop for Kharif 2008 season. The production is estimated at 13.1 MMT against 15.51 MMT produced in Kharif 2007.
The estimate for total grain output from kharif crops has been cut to 115.3 MMT from 120.9 MMT. The government is likely to review restrictions on rice exports in November, while the ban on corn exports, which lapses on October 15, will only be extended if the crop is poor.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Coarse grain prices across the board slumped in India this week. Maize prices were down by 0.6% to reach Rs.8500 per MT at the market yard. Average for Sept 08 was Rs.8500 per MT, while for Sept 07, the prices were Rs.6871 per Mt at the market yard. Against last year average the prices are higher by 23.7%.
Pearl Millet (Bajra) prices also were down by 7.2% to level at Rs.7090 per MT. Against maize the prices are lower by 20%. Average for Sept 08, was Rs.7138 per MT, about 9.5% higher than, Sept 07 rates of Rs.6510 per MT.
Sorghum (Jowar) prices were down by 3.8% this week to Rs.9090 per Mt at the market yard. Against maize the prices are higher by 6.4%. Prices averaged Rs.9673 per Mt in Sept 08,, 3.77% higher than Sept 07 rate of Rs.9322 per MT.
Barley prices were also down by 0.5% to reach 9600 per MT. Average price for Sept 08 at the market yard was Rs.9500 per MT
Corn prices in the US are stable. Corn on CBOT closed at $213.77 for Dec 2008, while for March 2009, the value was $220.85 per MT. Indicative prices for OCT – Feb delivery (FOB) US Gulf was $233- 240 per MT, while PNW values were close to $272 – 275 per MT.
Freight markets are down considerably since last week. US Gulf – Japan freight is down to $65 per MT against $91 last week. Similarly PNW – Japan freight is down to $43 per MT against $60 last week.
DDGS prices have come down in relation to corn prices this week. FOB US Gulf prices was indicated at $197 per MT, while FOB PNW was $213. Prices of a 40 foot container delivered to Thailand was indicated at $283 per MT.
Indian corn production to be lower
The latest estimates from GOI predict a 15.5% lower corn crop for Kharif 2008 season. The production is estimated at 13.1 MMT against 15.51 MMT produced in Kharif 2007.
The estimate for total grain output from kharif crops has been cut to 115.3 MMT from 120.9 MMT. The government is likely to review restrictions on rice exports in November, while the ban on corn exports, which lapses on October 15, will only be extended if the crop is poor.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, September 20, 2008
Commodity prices stable, rains and floods cause damage; China may have a long term corn supply crunch
Commodity prices stable, rains and floods cause damage
Maize prices at the market yard was down by 1.7% to Rs.8555 per MT this week. Reports indicate that arrivals have started in some parts of Andhra Pradesh and Karnataka. The maximum price for Yellow corn at the market yard was reported at Rs.9250, while for the Red variety the highest reported price was Rs.9500 per MT.In the futures market the prices are up for Jan 2009 delivery by about 5% this week over last week. For months Sept – Dec the prices are up in the range 1 -3%. In the SPOT marks though prices ae stable or are down in the range 0.5 – 1.5% this week.
Pearl Millet prices were up by about 2.7% this week to level at Rs.7650 per MT. The prices are about 12% lower than maize prices.
Sorghum prices were lower by 2.2% this week to reach Rs.9445 per MT at the market yard. Prices are higher than maize by 9.4%.
Barley prices were up by 4% to reach 9560 per MT at the market yard.
On CBOT corn prices for Dec delivery were down from last week’s 221 to 213.45 MT. March delivery was $220 per MT.
Unprecedented rains in all parts of North India, Gujarat, Orissa, parts of Andhra Pradesh have caused heavy damage to the crops. Many areas of Gujarat and Orissa are under flood. Rice crop in parts of Punjab and Haryana where harvest had started is likely to be damaged in these rains. GOI reports indicate that at-least 1.8 mill hac area under Khariff has been affected due to floods uptill Aug 2008. And the new spell of floods in Sept in likely to affect areas in Maharashtra as well.
Latest crop data reveals, Maize sowing lagging behind at 7.12 mill hac in 2008 against 7.351 in 2007. Area under Pearl Millet (Bajra) is down at 7.77 Mill hac against 8.27 Mill hac in 2007. Area under Sorghum is down to 2.913 against last years 3.394 Mill hac. Even area under pulses is down to 10.28 mill hac against 12.30 Mill hc in 2007.
China may have a long term corn supply crunch
The corn demand in China for 2008/09 may be higher than the supplies. China is expected to produce 142.5 MMT while the demand is likely to be 170 MMT as per Government estimates.
Reports from China indicate that farmers have shifted to rice, which is a staple and this will lead to long term supply crunch for corn in China.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Maize prices at the market yard was down by 1.7% to Rs.8555 per MT this week. Reports indicate that arrivals have started in some parts of Andhra Pradesh and Karnataka. The maximum price for Yellow corn at the market yard was reported at Rs.9250, while for the Red variety the highest reported price was Rs.9500 per MT.In the futures market the prices are up for Jan 2009 delivery by about 5% this week over last week. For months Sept – Dec the prices are up in the range 1 -3%. In the SPOT marks though prices ae stable or are down in the range 0.5 – 1.5% this week.
Pearl Millet prices were up by about 2.7% this week to level at Rs.7650 per MT. The prices are about 12% lower than maize prices.
Sorghum prices were lower by 2.2% this week to reach Rs.9445 per MT at the market yard. Prices are higher than maize by 9.4%.
Barley prices were up by 4% to reach 9560 per MT at the market yard.
On CBOT corn prices for Dec delivery were down from last week’s 221 to 213.45 MT. March delivery was $220 per MT.
Unprecedented rains in all parts of North India, Gujarat, Orissa, parts of Andhra Pradesh have caused heavy damage to the crops. Many areas of Gujarat and Orissa are under flood. Rice crop in parts of Punjab and Haryana where harvest had started is likely to be damaged in these rains. GOI reports indicate that at-least 1.8 mill hac area under Khariff has been affected due to floods uptill Aug 2008. And the new spell of floods in Sept in likely to affect areas in Maharashtra as well.
Latest crop data reveals, Maize sowing lagging behind at 7.12 mill hac in 2008 against 7.351 in 2007. Area under Pearl Millet (Bajra) is down at 7.77 Mill hac against 8.27 Mill hac in 2007. Area under Sorghum is down to 2.913 against last years 3.394 Mill hac. Even area under pulses is down to 10.28 mill hac against 12.30 Mill hc in 2007.
China may have a long term corn supply crunch
The corn demand in China for 2008/09 may be higher than the supplies. China is expected to produce 142.5 MMT while the demand is likely to be 170 MMT as per Government estimates.
Reports from China indicate that farmers have shifted to rice, which is a staple and this will lead to long term supply crunch for corn in China.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, September 13, 2008
Commodity prices move up; Second largest US corn crop in offing; Information on food safety issues in world trade
Commodity prices move up
Maize prices moved up by about 5.6% this to Rs.8700 per Mt at the market yards. For the week ending Sept 7, the prices were s.8200 per MT. Against last year, maize prices were ruling 21.5% higher. In the futures as well the prices from Aug 22 – Sept 12 period for Sept delivery have registered a upswing of 4%. Fir deliveries in months of Oct – Jan, the prices have gone up by 0.2 – 1%. In the spot markets as well, for the three week period, the prices at Nizamabad have shown an upswing of 2.5% to Rs.10,115, Karimngar up by 6% to 10,350 per MT . It was only at Davangere that the prices have been down by 0.7% to Rs.10400 per MT levels. Reports are that at some location in Andhra Pradesh, stocks have started to come into the market.
Pearl Millet prices added about 16.3% to its tally reaching Rs.7450 per MT. Fort he week ending Sept 7, prices were close to Rs.6400 per MT on an average. Against maize, the prices are lower by 17%. The prices were about 15% higher than last year.
Sorghum prices were down by about 8% this week to Rs.9650 per MT at the market yard.. For the week ending Sept 7, the prices were Rs.10,500 per MT. Against last year the prices are up by 14%. Against maize the prices are up by 10%.
Barley prices were down by 4.6% this week to Rs.9200. For the week ending Sept 7, the prices were Rs.9600 per MT. Over last year, the prices are actually down by 1%, which may be good news for the brewery industrly.
On CBOT, the prices were $215.5 – 221.7 per MT for Sept – Dec delivery, The prices are up over last weeks close of $209 – 215 for the same months. The indicative FOB prices from US Gulf would be close to $240 – 245 per MT for Oct – Dec and for PNW $290 per MT.
Second largest US corn crop in offing
The WASDE report on Friday, Sept 12, 2008 shows an increase in domestic sorghum production and the second-largest corn crop on record. The increase in production is driven by global demand. U.S. sorghum production for 2008/09 is estimated at 10.82 MMT. Barley production is estimated at 4.746 MMT.
The 2008 corn crop is also projected at 306.78 MMT, though about 7 MMT lower against last month's estimates, it will still be be the second-largest crop in US history. The productivity is expected at 3.868 tons/Acre.
Information on food safety issues in world trade
Five commodity associations, U.S. Grains Council, U.S. Soybean Export Council, U.S. Meat Export Federation, the USA Poultry and Egg Export Association, and U.S. Dairy Export Council have joined hands to form Food & Agriculture Export Alliance (FAEA). The association has launched a new Web site facilitating international trade by providing information to promote better understanding of food safety based import and export standards.
The site, which is presented in both Chinese and English language, allows users to easily access U.S. and international food safety regulations, the latest news from appropriate regulatory agencies and training modules.
This site can be accessed in English at www.usfoodsafety.cn/webs/standards.aspx
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Maize prices moved up by about 5.6% this to Rs.8700 per Mt at the market yards. For the week ending Sept 7, the prices were s.8200 per MT. Against last year, maize prices were ruling 21.5% higher. In the futures as well the prices from Aug 22 – Sept 12 period for Sept delivery have registered a upswing of 4%. Fir deliveries in months of Oct – Jan, the prices have gone up by 0.2 – 1%. In the spot markets as well, for the three week period, the prices at Nizamabad have shown an upswing of 2.5% to Rs.10,115, Karimngar up by 6% to 10,350 per MT . It was only at Davangere that the prices have been down by 0.7% to Rs.10400 per MT levels. Reports are that at some location in Andhra Pradesh, stocks have started to come into the market.
Pearl Millet prices added about 16.3% to its tally reaching Rs.7450 per MT. Fort he week ending Sept 7, prices were close to Rs.6400 per MT on an average. Against maize, the prices are lower by 17%. The prices were about 15% higher than last year.
Sorghum prices were down by about 8% this week to Rs.9650 per MT at the market yard.. For the week ending Sept 7, the prices were Rs.10,500 per MT. Against last year the prices are up by 14%. Against maize the prices are up by 10%.
Barley prices were down by 4.6% this week to Rs.9200. For the week ending Sept 7, the prices were Rs.9600 per MT. Over last year, the prices are actually down by 1%, which may be good news for the brewery industrly.
On CBOT, the prices were $215.5 – 221.7 per MT for Sept – Dec delivery, The prices are up over last weeks close of $209 – 215 for the same months. The indicative FOB prices from US Gulf would be close to $240 – 245 per MT for Oct – Dec and for PNW $290 per MT.
Second largest US corn crop in offing
The WASDE report on Friday, Sept 12, 2008 shows an increase in domestic sorghum production and the second-largest corn crop on record. The increase in production is driven by global demand. U.S. sorghum production for 2008/09 is estimated at 10.82 MMT. Barley production is estimated at 4.746 MMT.
The 2008 corn crop is also projected at 306.78 MMT, though about 7 MMT lower against last month's estimates, it will still be be the second-largest crop in US history. The productivity is expected at 3.868 tons/Acre.
Information on food safety issues in world trade
Five commodity associations, U.S. Grains Council, U.S. Soybean Export Council, U.S. Meat Export Federation, the USA Poultry and Egg Export Association, and U.S. Dairy Export Council have joined hands to form Food & Agriculture Export Alliance (FAEA). The association has launched a new Web site facilitating international trade by providing information to promote better understanding of food safety based import and export standards.
The site, which is presented in both Chinese and English language, allows users to easily access U.S. and international food safety regulations, the latest news from appropriate regulatory agencies and training modules.
This site can be accessed in English at www.usfoodsafety.cn/webs/standards.aspx
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Tuesday, September 02, 2008
Commodity prices stay up; US Grains Council brings Dr.Shukla to India
Commodity prices stay up
Maize prices were down for the week ended Aug 29, 2008 by 0.6% to Rs.8740 per MT at the market yard. But the prices were about 18.2% higher over last years prices in the last week of Aug 2007. For the month of August 2008, the prices averages Rs.8914 per MT, about 21% higher than Aug 2007.
Pearl Millet (Bajra) prices were up by 2.8% to Rs.7585 per MT and were also 11.5% higher than last year prices. The prices were lower than maize by 15.2%. For the month of Aug 2008, prices were Rs.7657 per MT at the market yard, about 13.7% higher than Aug 2007 average.
Sorghum (Jowar) prices were up by 8.6% this week to Rs.11,655 per MT at the market yard. The prices were higher than last year by 21%. Against maize the price are higher by 25%. For Aug 2008, the prices averaged Rs.10919 per MT, about 17% higher than Aug 2007.
Barley prices slumped by 1.7% this week to Rs.9960 per MT at the market yard, but the prices were about 19.3% higher than last year values. For the month of Aug 2008, the prices were Rs.10,256 per MT, about 30% higher than Aug 2007 prices.
On Feb 29, 2008, corn on CBOT for Sept and Dec delivery closed at $223 – 230 per MT, about $7 lower than last week’s close. FOB (US Gulf) values for Sept – Dec were close to $250 – 255 per MT. FOB (PNW) for Oct – Dec were close to $295 per MT.
US Grains Council brings Dr.Shukla to India
The All India Starch Manufacturers Association (AISMA) organized a starch application seminar on Aug 26, 2008 at Ahmedabad. Dr.Triveni P Shukla, independent consultant for U S Grains Council provided insights to the participants on the new products and applications.
Dr.Shukla was of the opinion that as the food and the packaging industry grows, the demand for value added starches will grow and the industry will need to move in that direction. At the same time, the industry will need to work closely with the new Food Standards and safety Authority (FSSA), and create new food standards where starch is used as an ingredient and not considered as an adulterant in food. In india the average per capita starch consumption is less that 0.5 kg, which in the US is over 6.0 kg.
On the efficiency factor, Dr.Shukla opined that the use of water in starch production should be 1:9., i.e., for every ton of corn at least 9 tons of water must be used. This water used mostly for steeping and washing plays an important role in the starch recovery, which is US is about 68%.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Maize prices were down for the week ended Aug 29, 2008 by 0.6% to Rs.8740 per MT at the market yard. But the prices were about 18.2% higher over last years prices in the last week of Aug 2007. For the month of August 2008, the prices averages Rs.8914 per MT, about 21% higher than Aug 2007.
Pearl Millet (Bajra) prices were up by 2.8% to Rs.7585 per MT and were also 11.5% higher than last year prices. The prices were lower than maize by 15.2%. For the month of Aug 2008, prices were Rs.7657 per MT at the market yard, about 13.7% higher than Aug 2007 average.
Sorghum (Jowar) prices were up by 8.6% this week to Rs.11,655 per MT at the market yard. The prices were higher than last year by 21%. Against maize the price are higher by 25%. For Aug 2008, the prices averaged Rs.10919 per MT, about 17% higher than Aug 2007.
Barley prices slumped by 1.7% this week to Rs.9960 per MT at the market yard, but the prices were about 19.3% higher than last year values. For the month of Aug 2008, the prices were Rs.10,256 per MT, about 30% higher than Aug 2007 prices.
On Feb 29, 2008, corn on CBOT for Sept and Dec delivery closed at $223 – 230 per MT, about $7 lower than last week’s close. FOB (US Gulf) values for Sept – Dec were close to $250 – 255 per MT. FOB (PNW) for Oct – Dec were close to $295 per MT.
US Grains Council brings Dr.Shukla to India
The All India Starch Manufacturers Association (AISMA) organized a starch application seminar on Aug 26, 2008 at Ahmedabad. Dr.Triveni P Shukla, independent consultant for U S Grains Council provided insights to the participants on the new products and applications.
Dr.Shukla was of the opinion that as the food and the packaging industry grows, the demand for value added starches will grow and the industry will need to move in that direction. At the same time, the industry will need to work closely with the new Food Standards and safety Authority (FSSA), and create new food standards where starch is used as an ingredient and not considered as an adulterant in food. In india the average per capita starch consumption is less that 0.5 kg, which in the US is over 6.0 kg.
On the efficiency factor, Dr.Shukla opined that the use of water in starch production should be 1:9., i.e., for every ton of corn at least 9 tons of water must be used. This water used mostly for steeping and washing plays an important role in the starch recovery, which is US is about 68%.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, August 23, 2008
Coarse cereal prices lower across the board and sowing trails
Coarse cereal prices lower across the board and sowing trails
Maize prices moved lower by about 2.7% this week on an average at the market yards. Prices were average at Rs.8790 per MT. The prices though are higher than last year by about 18%. One of the reasons being attributed to the lower maize prices is the wait and watch adopted by the large end users, poultry, starch and feed sector. There is also an issue that poultry industry is going through a slowdown, which has affected the purchases.
On the futures front the, prices were down of Sept – Nov deliveries by 0.5 to 2.5% and were up for Dec delivery by about 1%. In the SPOT markets of Davangere, Karimnagar and Nizamabad, also the prices tumbled by about 2.5 – 3.7%.
Pearl Millet prices were down by 3.1% this week, to Rs.7375, but were 8.2% higher over last year. Against maize, the prices were lower by about 19% at the market yard.
Sorghum prices were also down by 1.3% to Rs.10730 per MT., but 14% higher than last year. Prices were about 18% higher than maize at the market yard.
Barley prices moved by this week at the market yard by 1.4%, average at Rs.10,130 per MT. Prices were 20.3% higher than last year at the market yard.
The new sowing data released by Ministry of Agriculture (Aug 21, 2008) shows maize sowing trailing by 7.1% (6.664 mil hac in 2008 against 7.178 Mill hac in 2007). States where the decline has been prominent include Andhra Pradesh, Kanataka and Maharashtra. Total coarse cereal area is down by 9.78% and pulses by 15.32%. Only Oilseed area is up by 0.71 and Rice by 6.94.
Corn prices on CBOT were up slightly for Sept and Dec deliveries at $230.85 and $238.72 per MT respectively.
Amit SachdevMaize prices moved lower by about 2.7% this week on an average at the market yards. Prices were average at Rs.8790 per MT. The prices though are higher than last year by about 18%. One of the reasons being attributed to the lower maize prices is the wait and watch adopted by the large end users, poultry, starch and feed sector. There is also an issue that poultry industry is going through a slowdown, which has affected the purchases.
On the futures front the, prices were down of Sept – Nov deliveries by 0.5 to 2.5% and were up for Dec delivery by about 1%. In the SPOT markets of Davangere, Karimnagar and Nizamabad, also the prices tumbled by about 2.5 – 3.7%.
Pearl Millet prices were down by 3.1% this week, to Rs.7375, but were 8.2% higher over last year. Against maize, the prices were lower by about 19% at the market yard.
Sorghum prices were also down by 1.3% to Rs.10730 per MT., but 14% higher than last year. Prices were about 18% higher than maize at the market yard.
Barley prices moved by this week at the market yard by 1.4%, average at Rs.10,130 per MT. Prices were 20.3% higher than last year at the market yard.
The new sowing data released by Ministry of Agriculture (Aug 21, 2008) shows maize sowing trailing by 7.1% (6.664 mil hac in 2008 against 7.178 Mill hac in 2007). States where the decline has been prominent include Andhra Pradesh, Kanataka and Maharashtra. Total coarse cereal area is down by 9.78% and pulses by 15.32%. Only Oilseed area is up by 0.71 and Rice by 6.94.
Corn prices on CBOT were up slightly for Sept and Dec deliveries at $230.85 and $238.72 per MT respectively.
India Representative
U S Grains Council
bluecross303@gmail.com
Sunday, August 17, 2008
Coarse grains prices show mixed response; Corn production predicted to be higher in US
Coarse grains prices show mixed response
Maize prices were down by 0.63% over last week and were close to Rs.9030 per MT. The prices though were about 17% higher than last year. Future prices for Aug / Sept were up by 2.8 – 2.9% over last weeks close, and spot prices at Davangere were also up by 0.4%. Other location the prices were either stable or down slightly. One of the reasons being attributed to stable prices is slowdown in demand from poultry, at least for some time. Poultry prices are down and cost of production being high, farmers not putting any stocks of broilers. Also the pickup is slow, as per report from Andhra Pradesh, Karnataka, Maharashtra, where the people turn vegetarians for 30 days during the religious festival in August – September.
Pearl Millet prices were down by 5.4% to Rs.7615 per MT, but about 13% higher than last year. Prices are about 18.6% lower than maize in the Mandi.
Sorghum prices moved up to Rs.4.5% over last week to Rs.10880 per MT. Prices are about 11.3% higher than last year and 17% higher than maize.
Barley prices were down by 8.7% this week to Rs.9990 per MT at the market yard. Prices were 22% higher than last year. Report that most of the end users are covered and the export demand being slow, is being attributed to downtrend in prices.
Corn prices on CBOT closed at $208 – 216 per MT for Sept – December delivery. The prices were lower than last week. The low prices have been attributed to slide in oil prices.
Corn production predicted to be higher in US
Despite the worst flooding in 15 years, which occurred in the Midwest, the farmers in US are projected to produce a record crop, says a USDA report. The latest WASDE, report released Aug 12, 2008 estimates corn production in US to touch about 313 MMT, against last month’s estimates of 297 MMT and increase of 4.9% over last week’s estimates. The weather in the last one month has been excellent and this will be beneficial to corn.
The ending stocks are still a worry and will be close to 28 MMT, against last years 40 MMT. There is speculation about the 104 MMT of corn use (33% of production) in ethanol, up from 76 MMT (22.9% of production) last year. As the corn prices were record high, there was an issue that some new ethanol plants may not see the light of the day, but with corn prices coming down to close to close to $200 per MT and stabilizing, the profits have increased and the ethanol plants are back in production.
Maize prices were down by 0.63% over last week and were close to Rs.9030 per MT. The prices though were about 17% higher than last year. Future prices for Aug / Sept were up by 2.8 – 2.9% over last weeks close, and spot prices at Davangere were also up by 0.4%. Other location the prices were either stable or down slightly. One of the reasons being attributed to stable prices is slowdown in demand from poultry, at least for some time. Poultry prices are down and cost of production being high, farmers not putting any stocks of broilers. Also the pickup is slow, as per report from Andhra Pradesh, Karnataka, Maharashtra, where the people turn vegetarians for 30 days during the religious festival in August – September.
Pearl Millet prices were down by 5.4% to Rs.7615 per MT, but about 13% higher than last year. Prices are about 18.6% lower than maize in the Mandi.
Sorghum prices moved up to Rs.4.5% over last week to Rs.10880 per MT. Prices are about 11.3% higher than last year and 17% higher than maize.
Barley prices were down by 8.7% this week to Rs.9990 per MT at the market yard. Prices were 22% higher than last year. Report that most of the end users are covered and the export demand being slow, is being attributed to downtrend in prices.
Corn prices on CBOT closed at $208 – 216 per MT for Sept – December delivery. The prices were lower than last week. The low prices have been attributed to slide in oil prices.
Corn production predicted to be higher in US
Despite the worst flooding in 15 years, which occurred in the Midwest, the farmers in US are projected to produce a record crop, says a USDA report. The latest WASDE, report released Aug 12, 2008 estimates corn production in US to touch about 313 MMT, against last month’s estimates of 297 MMT and increase of 4.9% over last week’s estimates. The weather in the last one month has been excellent and this will be beneficial to corn.
The ending stocks are still a worry and will be close to 28 MMT, against last years 40 MMT. There is speculation about the 104 MMT of corn use (33% of production) in ethanol, up from 76 MMT (22.9% of production) last year. As the corn prices were record high, there was an issue that some new ethanol plants may not see the light of the day, but with corn prices coming down to close to close to $200 per MT and stabilizing, the profits have increased and the ethanol plants are back in production.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, August 09, 2008
Commodity prices stay firm; Year of food safety and quality
Commodity prices stay firm
Maize prices averaged Rs.9090 per MT at the market yard this week, up by about 1% this week. But the prices were 17% higher than last year. In the futures market (NCDEX), the futures were down by 4-8%, max being for Sept by 8%. In the spot markets of Nizamabad and Karimnagar prices were down by 3%, while in Davangere they are up by 3% at Rs.10760 per MT.
Pearl Millet (Bajra)) prices were up by 1.8% to Rs.8050 per MT of demand from poultry sector, specially the layer segment. Prices are up by 15% over last year. Against maize the price are lower by 13%. The prices have moved up only due to pressure of buying.
Sorghum (jowar) prices on the other hand were down by 8.5%, to Rs.10409 at the market yard, but 11.7% higher than last year. And 12.7% above maize prices.
Barley prices moved up substantially this week to Rs.10,944 at the market yard, add 6.4% to its tally. The prices were 30.5% above last year values. On NCDEX, the futures were lower by 2-5% over last week and also in the spot market the prices were reported lower by 1%.
There has been extensive amount of rain this week all over the country and this may be good news for some areas, bur the flood situation in some areas could be an issue. Farmers are still out there planting gains, oilseeds etc and we can expect a good crop in the long run.
Corn prices on CBOT were below 200 levels for SEPT delivery ($196.20), a drop of 11.8% over last week. Dec corn was also at $204 per MT, losing 11.3% in the rally.
Year of food safety and quality
The year 2008/09 has been declared as the YEAR OF FOOD SAFETY AND QUALITY, by Government of India. As citizens of the country, customers and part of the food industry, let us join hands and do what we can to make this a year what it is meant to be be.
Lets try to make simple changes in the way we see food products (produce, transport, store and sell) and one small change of keep temperature as per the requirement and general cleanliness can make a different.
It is not a one man's job, but a collective effort that can help every one. If China can think of doing such a spectacular show, make changes in the system and adopt food safety systems, India too can do that, and with Food Safety and Standards Authority (FSSA) now a reality, it is more important that its hands are strengthened.
What do you think needs to be done in the meat sector (production, distribution, retail, customer level). If you have any suggestions, do write in with reasoning and these will be put together and put on the blog, for wider circulation and discussion.
Amit Sachdev
India representative
U S Grains Council
bluecross303@gmail.com
Maize prices averaged Rs.9090 per MT at the market yard this week, up by about 1% this week. But the prices were 17% higher than last year. In the futures market (NCDEX), the futures were down by 4-8%, max being for Sept by 8%. In the spot markets of Nizamabad and Karimnagar prices were down by 3%, while in Davangere they are up by 3% at Rs.10760 per MT.
Pearl Millet (Bajra)) prices were up by 1.8% to Rs.8050 per MT of demand from poultry sector, specially the layer segment. Prices are up by 15% over last year. Against maize the price are lower by 13%. The prices have moved up only due to pressure of buying.
Sorghum (jowar) prices on the other hand were down by 8.5%, to Rs.10409 at the market yard, but 11.7% higher than last year. And 12.7% above maize prices.
Barley prices moved up substantially this week to Rs.10,944 at the market yard, add 6.4% to its tally. The prices were 30.5% above last year values. On NCDEX, the futures were lower by 2-5% over last week and also in the spot market the prices were reported lower by 1%.
There has been extensive amount of rain this week all over the country and this may be good news for some areas, bur the flood situation in some areas could be an issue. Farmers are still out there planting gains, oilseeds etc and we can expect a good crop in the long run.
Corn prices on CBOT were below 200 levels for SEPT delivery ($196.20), a drop of 11.8% over last week. Dec corn was also at $204 per MT, losing 11.3% in the rally.
Year of food safety and quality
The year 2008/09 has been declared as the YEAR OF FOOD SAFETY AND QUALITY, by Government of India. As citizens of the country, customers and part of the food industry, let us join hands and do what we can to make this a year what it is meant to be be.
Lets try to make simple changes in the way we see food products (produce, transport, store and sell) and one small change of keep temperature as per the requirement and general cleanliness can make a different.
It is not a one man's job, but a collective effort that can help every one. If China can think of doing such a spectacular show, make changes in the system and adopt food safety systems, India too can do that, and with Food Safety and Standards Authority (FSSA) now a reality, it is more important that its hands are strengthened.
What do you think needs to be done in the meat sector (production, distribution, retail, customer level). If you have any suggestions, do write in with reasoning and these will be put together and put on the blog, for wider circulation and discussion.
Amit Sachdev
India representative
U S Grains Council
bluecross303@gmail.com
Saturday, August 02, 2008
Commodity prices do not relent; Poultry Processing and waste management; DDGS can lower cost of production
Commodity prices do not relent
Inflation is just a kissing distance away from 12% (11.98%). Commodity prices – specially coarse grain prices have risen further and there is no escape for the end-users – poultry, starch and livestock.
Maize prices moved up by 4.7% on an average at the market yard, crossing the Rs.9000 per MT mark for loose material. The prices are about16.5% above the last year prices. In some areas of Karnataka, Tamil nadu, delivered prices are close to Rs.12,200 – 12,500 per MT. For the month of July 2008, the average price of maize at the Market yard was Rs.8485 per MT against Rs.7442 per MT in July 2008, an increase of 14%.
In the futures market, maize prices were down from 3 – 7% over last week for Aug – Nov deliveries, but remained over Rs.10,000 per MT levels. Prices in Davangere SPOT market moved up by 6.8%, breached Rs.11000 per MT mark. Prices in Karimnagar and Nizamabad though were down by 1%. One of the reasons being attributed to a sudden price decrease is improvement in the monsoon coverage and some areas receiving wide-spread rains, which is likely to reduce the loss of yield. Even if farmers increase the speed of sowing in areas, which are receiving rains, the productivity will be affected.
Pearl Millet (Bajra) prices added 0.4% to its tally, reaching Rs.7900 per Mt at the market yard. The prices are 16% above last year values in the last week of July 2007. As the average prices are lower than maize by 14% thus generating interest to use Pearl Millet in rations and heavy buying is being done for delivering to South India, where average delivery prices are Rs.10000 – 10,500 per MT. Average Pearl Millet price for July 2008 was Rs.7440 per MT, against Rs.6580 per MT in July 2008, an increase of 13%.
Sorghum (Jowar) prices moved up by 5.6% to level at Rs.11,380 per MT at the market yard. Prices are about 15.4% higher than last year and 21% higher than maize. Average price for July 2008 at t he market yard was Rs.10,825 per MT, against Rs.9382 per MT in July 2007, an increase of 15.3%.
Barley prices were lower by 6.3% at the market yard this week, to level at Rs.10,290 per MT, but were higher than last year by 26.5%. Average prices for July 2008 were Rs.10,767 per MT almost 49.5% up against Rs.7200 per MT in July 2007.
Corn prices on CBOT slipped further by $4 -5, per Mt to close at 4222.42 - $230 per MT. One the reasons attributed to lower prices is the good weather in the corn belt and in addition reports than Argentina may be reducing the export tax.
Poultry Processing and waste management
At a recent meeting held under the agies of Municipal Corporation of Delhi regarding increased number of bird hits at Delhi’s Indira Gandhi International Airport, the poultry and animal waste generated and dumped around the city of Delhi from the slaughtering at the poultry market and elsewhere in the city has been held culprit. In addition the Hindon airbase, which is a stone throw from the Poultry Market on NH 24, is also facing problems of bird hit, due to slaughter and dumping of poultry waste at the dumpsite.
The Municipal Corporation of Delhi (MCD) enacted a law in Nov 2004, wherein slaughter of birds within the city of Delhi was banned, but the law was not enacted. It is high time that GOI / MCD takes action on this.
A proper poultry processing plant set up in Delhi will not only provide safe poultry meat to the citizens and tourists in the area, but will also help in managing poultry waste, that will be generated and will be rendered (converted into a protein meal at high temperature and pressure) within the premises, before being trucked out.
Food safety will be a major concern during common wealth games in 2010 and Govt. of Delhi will be need to be ready to provide not only safe food to the athletes but also safe environment to one and all.
For the Beijing Olympics, China has already gone ahead and banned live bird sales in some areas. Also extensive monitoring of poultry production from breeders to slaughters to delivery trucks and the feeding regimen have been taken up. This is to ensure safe food not only to the athletes but also for the general public. Once the project is implemented,
DDGS can lower cost of production
Report from two universities in US (Auburn and Purdue) suggest that 10% use of DDGS in broiler rations with appropriate enzymes can increase efficiency of production. It can lower the feed cost by about $9 per MT (US standards). A trial conducted reported 8% better live weight gain in 56 days and also improvement in Feed Conversion Ratio (FCR) by 4 points.
DDGS, with 10% oil and 27% protein is the only combination source, which is being used effectively in many countries of the world to manage production costs. It can also be used in dairy feeds to provide concentrated form of energy and protein to high yielders and in case of fish feed as well.
New plants are coming online in USA and the supply situation is likely to ease. The price of DDGS delivered to South East Asia (closest Bankok) is about $325.
Inflation is just a kissing distance away from 12% (11.98%). Commodity prices – specially coarse grain prices have risen further and there is no escape for the end-users – poultry, starch and livestock.
Maize prices moved up by 4.7% on an average at the market yard, crossing the Rs.9000 per MT mark for loose material. The prices are about16.5% above the last year prices. In some areas of Karnataka, Tamil nadu, delivered prices are close to Rs.12,200 – 12,500 per MT. For the month of July 2008, the average price of maize at the Market yard was Rs.8485 per MT against Rs.7442 per MT in July 2008, an increase of 14%.
In the futures market, maize prices were down from 3 – 7% over last week for Aug – Nov deliveries, but remained over Rs.10,000 per MT levels. Prices in Davangere SPOT market moved up by 6.8%, breached Rs.11000 per MT mark. Prices in Karimnagar and Nizamabad though were down by 1%. One of the reasons being attributed to a sudden price decrease is improvement in the monsoon coverage and some areas receiving wide-spread rains, which is likely to reduce the loss of yield. Even if farmers increase the speed of sowing in areas, which are receiving rains, the productivity will be affected.
Pearl Millet (Bajra) prices added 0.4% to its tally, reaching Rs.7900 per Mt at the market yard. The prices are 16% above last year values in the last week of July 2007. As the average prices are lower than maize by 14% thus generating interest to use Pearl Millet in rations and heavy buying is being done for delivering to South India, where average delivery prices are Rs.10000 – 10,500 per MT. Average Pearl Millet price for July 2008 was Rs.7440 per MT, against Rs.6580 per MT in July 2008, an increase of 13%.
Sorghum (Jowar) prices moved up by 5.6% to level at Rs.11,380 per MT at the market yard. Prices are about 15.4% higher than last year and 21% higher than maize. Average price for July 2008 at t he market yard was Rs.10,825 per MT, against Rs.9382 per MT in July 2007, an increase of 15.3%.
Barley prices were lower by 6.3% at the market yard this week, to level at Rs.10,290 per MT, but were higher than last year by 26.5%. Average prices for July 2008 were Rs.10,767 per MT almost 49.5% up against Rs.7200 per MT in July 2007.
Corn prices on CBOT slipped further by $4 -5, per Mt to close at 4222.42 - $230 per MT. One the reasons attributed to lower prices is the good weather in the corn belt and in addition reports than Argentina may be reducing the export tax.
Poultry Processing and waste management
At a recent meeting held under the agies of Municipal Corporation of Delhi regarding increased number of bird hits at Delhi’s Indira Gandhi International Airport, the poultry and animal waste generated and dumped around the city of Delhi from the slaughtering at the poultry market and elsewhere in the city has been held culprit. In addition the Hindon airbase, which is a stone throw from the Poultry Market on NH 24, is also facing problems of bird hit, due to slaughter and dumping of poultry waste at the dumpsite.
The Municipal Corporation of Delhi (MCD) enacted a law in Nov 2004, wherein slaughter of birds within the city of Delhi was banned, but the law was not enacted. It is high time that GOI / MCD takes action on this.
A proper poultry processing plant set up in Delhi will not only provide safe poultry meat to the citizens and tourists in the area, but will also help in managing poultry waste, that will be generated and will be rendered (converted into a protein meal at high temperature and pressure) within the premises, before being trucked out.
Food safety will be a major concern during common wealth games in 2010 and Govt. of Delhi will be need to be ready to provide not only safe food to the athletes but also safe environment to one and all.
For the Beijing Olympics, China has already gone ahead and banned live bird sales in some areas. Also extensive monitoring of poultry production from breeders to slaughters to delivery trucks and the feeding regimen have been taken up. This is to ensure safe food not only to the athletes but also for the general public. Once the project is implemented,
DDGS can lower cost of production
Report from two universities in US (Auburn and Purdue) suggest that 10% use of DDGS in broiler rations with appropriate enzymes can increase efficiency of production. It can lower the feed cost by about $9 per MT (US standards). A trial conducted reported 8% better live weight gain in 56 days and also improvement in Feed Conversion Ratio (FCR) by 4 points.
DDGS, with 10% oil and 27% protein is the only combination source, which is being used effectively in many countries of the world to manage production costs. It can also be used in dairy feeds to provide concentrated form of energy and protein to high yielders and in case of fish feed as well.
New plants are coming online in USA and the supply situation is likely to ease. The price of DDGS delivered to South East Asia (closest Bankok) is about $325.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, July 26, 2008
Commodity prices increase further; Genetics and dairy business
Commodity prices increase further
Maize prices climbed another 1.3% this week at the market yard. The prices were average at Rs.8600 per MT. The prices are 13% higher than last year. In the future markets prices for Jul – Nov deliveries were all over 10,000 MT. Delivered prices in poultry pockets of Andhra Pradesh, Karnataka and Maharashtra have reached over Rs.11,500. Fed prices are close to Rs.16000 per MT.
In the futures market, the prices for Aug and September deliveries were quoted at Rs.10750 per MT and are up by 7.5% on an average. Oct deliveries prices are up by 4.5% over last week and Nov deliveries have gained another 1% over last week, closing at Rs.9945 per MT. In the SPOT markets, Nizamabad and Karimnagar in Andhra Pradesh have added 12.3% and 12.8% to its tally to close at about 10,950 per MT on an average, while in Davangere in Karnataka, the prices were Rs.10,365 per MT, 8.5% higher than last week.
It is getting difficult for the farmers and the industry to sustain at such high prices. Be it the poultry industry or the dairy industry, the increasing commodity prices are hitting on the bottom lines and it is not possible to increase the sale prices of the end products, like meat, milk and eggs to compensate for the increase in commodity prices.
Pearl Millet (Bajra) prices have moved up by 8.6% this week to reach Rs.7880 per MT. The prices are about 17% higher than last year. Pearl Millet prices are still lower than maize by 9% in production areas at the market yard level, making it a good buy for use in broiler and layer rations.
Sorghum (Jowar) prices this week were lower than last week by 0.5%, close to Rs.10780 per MT. Prices are about 15.7% higher than last year and 20% higher than maize in the market yard,
Barley prices eased by 0.6% this week to Rs.10980 per MT at the market yard. The prices are still higher than last year by 33%. Even though the average prices moved lower, SPOT prices in Jaipur moved by 1.2% over last week to Rs.12715 per MT.
Corn on CBOT slipped further, closing at $227.23 and $234.79 per MT for Sept and Dec delivery respectively. The prices are about 5% lower than the last week’s close.
Genetics and dairy business
Of the three pillars of dairy sector (Genetics, Management and Feeding), genetics is one of the “Key Components” that can help in shaping a robust and a viable Diary Industry. Countries that have used genetics as a tool have enhanced productivity of animals and have also helped in sustaining farmer profitability by increasing milk production and components.
Countries like Netherlands, United Kingdom, Japan have benefitted tremendously from the open door policies of genetic imports which helped the farmers on these countries produce milk, much more than their counterparts earlier in another era.
Data from USDA and other organizations reveals that in Netherlands the growth of the dairy industry has been tremendous. In 40 years (1960 - 2000), the average production has gone up from 4200 kg/cow/lactation to 7000 kg/cow/lactation. Netherlands in 1960 produced 6.72 MMT of milk from 1.62 million animals, which in 2000 were only 1.5 million and produced 11.17 MMT of milk.
In United Kingdom, the number of animals in production reduced considerably from 2.6 million in 1996 to 2.0 million in 2006, but the average production went up from 5600 lit/cow/annum to 7000 lit/cow/annum.
Japan in 1995 produced 8.3 MMT of milk from 1.03 million animals, with an average production of 8106 kg/cow. In 2005, the total number of animals were down by 12.6% to 0.93 million. The total production of milk though remained same at 8.3 MMT, which an average productivity of 8935 kg/cow.
In USA, the milk productivity has almost tripled in 55 years. In 1940 the average milk production was 2100 kg/cow/lactation, which in 1995 was 7441 kg/cow/lactation.
In 1995, USA produced 70 MMT of milk from 9.4 million animals, with an average production of 7441 kg/cow. The total production of milk in 2006, rose to 79 MMT from 8.9 million animals, with an average production of 8800 kg/cow.
India is number one in milk production, but the total animal numbers are also the highest, thus giving a low productivity/animal. With an average productivity of 1000 kg/year, it is difficult for farmers to make money. Recent survey indicates that the commodity prices have gone up by an average of 20%, while the milk prices have increased by 12%. The cost of production of milk in last 3 years have increased by over 30%, due to increase in feed costs and labor costs.
Better genetics can play a role in enhancing productivity. Better feeding and management practices for the elite animals produced by better genetics will help in sustaining milk production and helping farmers to expand dairy farming business. In fact less number of animals will need to be fed to produce same or more quantity of milk, better animals can be produced by using better genetics.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Maize prices climbed another 1.3% this week at the market yard. The prices were average at Rs.8600 per MT. The prices are 13% higher than last year. In the future markets prices for Jul – Nov deliveries were all over 10,000 MT. Delivered prices in poultry pockets of Andhra Pradesh, Karnataka and Maharashtra have reached over Rs.11,500. Fed prices are close to Rs.16000 per MT.
In the futures market, the prices for Aug and September deliveries were quoted at Rs.10750 per MT and are up by 7.5% on an average. Oct deliveries prices are up by 4.5% over last week and Nov deliveries have gained another 1% over last week, closing at Rs.9945 per MT. In the SPOT markets, Nizamabad and Karimnagar in Andhra Pradesh have added 12.3% and 12.8% to its tally to close at about 10,950 per MT on an average, while in Davangere in Karnataka, the prices were Rs.10,365 per MT, 8.5% higher than last week.
It is getting difficult for the farmers and the industry to sustain at such high prices. Be it the poultry industry or the dairy industry, the increasing commodity prices are hitting on the bottom lines and it is not possible to increase the sale prices of the end products, like meat, milk and eggs to compensate for the increase in commodity prices.
Pearl Millet (Bajra) prices have moved up by 8.6% this week to reach Rs.7880 per MT. The prices are about 17% higher than last year. Pearl Millet prices are still lower than maize by 9% in production areas at the market yard level, making it a good buy for use in broiler and layer rations.
Sorghum (Jowar) prices this week were lower than last week by 0.5%, close to Rs.10780 per MT. Prices are about 15.7% higher than last year and 20% higher than maize in the market yard,
Barley prices eased by 0.6% this week to Rs.10980 per MT at the market yard. The prices are still higher than last year by 33%. Even though the average prices moved lower, SPOT prices in Jaipur moved by 1.2% over last week to Rs.12715 per MT.
Corn on CBOT slipped further, closing at $227.23 and $234.79 per MT for Sept and Dec delivery respectively. The prices are about 5% lower than the last week’s close.
Genetics and dairy business
Of the three pillars of dairy sector (Genetics, Management and Feeding), genetics is one of the “Key Components” that can help in shaping a robust and a viable Diary Industry. Countries that have used genetics as a tool have enhanced productivity of animals and have also helped in sustaining farmer profitability by increasing milk production and components.
Countries like Netherlands, United Kingdom, Japan have benefitted tremendously from the open door policies of genetic imports which helped the farmers on these countries produce milk, much more than their counterparts earlier in another era.
Data from USDA and other organizations reveals that in Netherlands the growth of the dairy industry has been tremendous. In 40 years (1960 - 2000), the average production has gone up from 4200 kg/cow/lactation to 7000 kg/cow/lactation. Netherlands in 1960 produced 6.72 MMT of milk from 1.62 million animals, which in 2000 were only 1.5 million and produced 11.17 MMT of milk.
In United Kingdom, the number of animals in production reduced considerably from 2.6 million in 1996 to 2.0 million in 2006, but the average production went up from 5600 lit/cow/annum to 7000 lit/cow/annum.
Japan in 1995 produced 8.3 MMT of milk from 1.03 million animals, with an average production of 8106 kg/cow. In 2005, the total number of animals were down by 12.6% to 0.93 million. The total production of milk though remained same at 8.3 MMT, which an average productivity of 8935 kg/cow.
In USA, the milk productivity has almost tripled in 55 years. In 1940 the average milk production was 2100 kg/cow/lactation, which in 1995 was 7441 kg/cow/lactation.
In 1995, USA produced 70 MMT of milk from 9.4 million animals, with an average production of 7441 kg/cow. The total production of milk in 2006, rose to 79 MMT from 8.9 million animals, with an average production of 8800 kg/cow.
India is number one in milk production, but the total animal numbers are also the highest, thus giving a low productivity/animal. With an average productivity of 1000 kg/year, it is difficult for farmers to make money. Recent survey indicates that the commodity prices have gone up by an average of 20%, while the milk prices have increased by 12%. The cost of production of milk in last 3 years have increased by over 30%, due to increase in feed costs and labor costs.
Better genetics can play a role in enhancing productivity. Better feeding and management practices for the elite animals produced by better genetics will help in sustaining milk production and helping farmers to expand dairy farming business. In fact less number of animals will need to be fed to produce same or more quantity of milk, better animals can be produced by using better genetics.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, July 19, 2008
Commodity prices move up in India – strain on end users
Commodity prices move up in India – strain on end users
Maize prices move up by another 4% this week at market yard, averaging Rs.8430 per MT. The prices are 11% higher than last year, during the same time. Delivery prices this week at some locations were close to Rs.11000 per MT, Bangalore Rs.10,700; Hyderabad R.10,900; Pune Rs.11,000. Soybean Meal prices are also soaring and have reached Rs.24500 per MT (delivered Hyderabad).
In comparison to last week, maize prices in the futures market have moved up considerably, Jul contract up by 3.9%; Aug up by 3.37%, Sept added 1.82% to its tally and Oct and Nov closed 5.4% higher than last week’s close. In the SPOT market too, maize prices moved up with Nizamabad and Karimnagar adding 4.2% and 6.31% respectively over last week, while Davangere Spot prices moved up 0.36% over last week. The question being asked, if the production is at its highest (19.31 MMT), why are the prices so high and deliveries poor.
The high prices of ingredients has increased the prices of feed to the farmers, reach Rs.14000 to Rs.15000 per MT for layers and broilers respectively. Just looking at layer feed price, the cost of feed per egg is about Rs.1.82, thus the cost of production is close to Rs.2.20 or higher per egg (adding management and interest costs).
Pearl Millet (Bajra) prices were down by 0.7% to reach Rs.7260 per MT at the market yard. but the prices are 3.6% higher than last year. The demand of pearl millet as a grin for poultry feed has surged due to its lower price than corn (17%), but this may not last for long as the prices are likely to go up in near future.
Sorghum (Jowar) prices moved by 0.5% to level at Rs.10825 per MT. Prices are 14% higher than last year. The prices are 21% higher than maize.
Barley prices have risen by3% this week to reach Rs.11050 per MT. The prices are 34% higher than last year. In the last one week, prices of barley have been stable.
Corn prices in the US fell further this week by 10 – 11% for Sept – Dec contracts. Corn on CBOT closed at $239 – 247 per MT. One of the reason attributed to the fall in prices is the good weather US corn belt is experiencing in the last couple of days, which will help the crop.
Maize prices move up by another 4% this week at market yard, averaging Rs.8430 per MT. The prices are 11% higher than last year, during the same time. Delivery prices this week at some locations were close to Rs.11000 per MT, Bangalore Rs.10,700; Hyderabad R.10,900; Pune Rs.11,000. Soybean Meal prices are also soaring and have reached Rs.24500 per MT (delivered Hyderabad).
In comparison to last week, maize prices in the futures market have moved up considerably, Jul contract up by 3.9%; Aug up by 3.37%, Sept added 1.82% to its tally and Oct and Nov closed 5.4% higher than last week’s close. In the SPOT market too, maize prices moved up with Nizamabad and Karimnagar adding 4.2% and 6.31% respectively over last week, while Davangere Spot prices moved up 0.36% over last week. The question being asked, if the production is at its highest (19.31 MMT), why are the prices so high and deliveries poor.
The high prices of ingredients has increased the prices of feed to the farmers, reach Rs.14000 to Rs.15000 per MT for layers and broilers respectively. Just looking at layer feed price, the cost of feed per egg is about Rs.1.82, thus the cost of production is close to Rs.2.20 or higher per egg (adding management and interest costs).
Pearl Millet (Bajra) prices were down by 0.7% to reach Rs.7260 per MT at the market yard. but the prices are 3.6% higher than last year. The demand of pearl millet as a grin for poultry feed has surged due to its lower price than corn (17%), but this may not last for long as the prices are likely to go up in near future.
Sorghum (Jowar) prices moved by 0.5% to level at Rs.10825 per MT. Prices are 14% higher than last year. The prices are 21% higher than maize.
Barley prices have risen by3% this week to reach Rs.11050 per MT. The prices are 34% higher than last year. In the last one week, prices of barley have been stable.
Corn prices in the US fell further this week by 10 – 11% for Sept – Dec contracts. Corn on CBOT closed at $239 – 247 per MT. One of the reason attributed to the fall in prices is the good weather US corn belt is experiencing in the last couple of days, which will help the crop.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Saturday, July 12, 2008
Commodity prices up - despite higher production estimates; Corn prices lower in US – on good weather and USDA projects lower production
Commodity prices up - despite higher production estimates
Government of India this week came out with the 4th Advance estimates for food grain production. The estimates project a production of +230 MMT of food grain production, including 19.31 MMT of maize, up by 4% over last estimates of 18.54 MMT and 27.8% over last years production of 15.10 MMT.
Despite high production estimates the future prices were higher and in the last two days (since the estimates were announced) the prices have moved up. July futures move up by 3.5% to Rs.9315 per MT on Friday (Jul 11, 2008), up from Rs.9000 per MT on Jul 10, 2008. Similarly August contract was up 3% to Rs.9640 per MT, Sept contract up 4% to Rs.9840 per MT and Oct contract up 2% to Rs.9350 per MT. November contract opened at Rs.9360 per MT.
On an average the prices at the Mandi were also up by about 1.3% over last week at Rs.Rs.8175 per MT. prices were higher than last year by about 10%. This indicates that demand and supply has taken care of the prices and prices are likely to go up on limited supplies.
With the monsoon covering almost all parts of the country, area under maize is expected to go up as the prices at the mandi are currently 30% higher than the Minimum Support Prices (MSP) and GOI has not announced the MSP for the year 2008/09. There is cause of concern about sowing in Andhra Pradesh, Maharashtra and Karnataka due to lack of rains in some parts though. Any delay in sowing will affect the productivity in these areas.
Pearl Millet (Bajra) prices went up by 1.72% to Rs.7300 per MT levels at the market yard. Delivered prices at some locations (south India) were close to Rs.9300 per MT, similar to maize prices, but layers farmers are able to use the product. The prices are running 11.5% higher than last year and about 12% lower than maize at the market yard.
Sorghum (Jowar)prices also went up this week to Rs.10774, adding 5.75% to the prices. Prices are about 10% higher than last year and 24% higher than maize.
Barley prices were down of slower exports. Prices wee close to Rs.10,729 per MT, a loss of 2.4% over last week, but prices are higher than last year by 34.4%.
Corn prices lower in US – on good weather and USDA projects lower production
As good weather (near perfect) prevailed in US for a week in the corn belt, corn prices shed almost 9.5% for July – Dec contracts, close in the range of $267 – 279 per MT from $293 – 306 per MT last week.
USDA also came out with the new production numbers. For the year 2007/08 corn ending stocks are projected higher at 21 MMT due to reductions in food, seed, and industrial use. Production for 2008/09, however, is projected lower at 297.57 MMT. As indicated in the Acreage report, heavy June rains and flooding reduced the share of harvested area in the higher- yielding Corn Belt states.
Government of India this week came out with the 4th Advance estimates for food grain production. The estimates project a production of +230 MMT of food grain production, including 19.31 MMT of maize, up by 4% over last estimates of 18.54 MMT and 27.8% over last years production of 15.10 MMT.
Despite high production estimates the future prices were higher and in the last two days (since the estimates were announced) the prices have moved up. July futures move up by 3.5% to Rs.9315 per MT on Friday (Jul 11, 2008), up from Rs.9000 per MT on Jul 10, 2008. Similarly August contract was up 3% to Rs.9640 per MT, Sept contract up 4% to Rs.9840 per MT and Oct contract up 2% to Rs.9350 per MT. November contract opened at Rs.9360 per MT.
On an average the prices at the Mandi were also up by about 1.3% over last week at Rs.Rs.8175 per MT. prices were higher than last year by about 10%. This indicates that demand and supply has taken care of the prices and prices are likely to go up on limited supplies.
With the monsoon covering almost all parts of the country, area under maize is expected to go up as the prices at the mandi are currently 30% higher than the Minimum Support Prices (MSP) and GOI has not announced the MSP for the year 2008/09. There is cause of concern about sowing in Andhra Pradesh, Maharashtra and Karnataka due to lack of rains in some parts though. Any delay in sowing will affect the productivity in these areas.
Pearl Millet (Bajra) prices went up by 1.72% to Rs.7300 per MT levels at the market yard. Delivered prices at some locations (south India) were close to Rs.9300 per MT, similar to maize prices, but layers farmers are able to use the product. The prices are running 11.5% higher than last year and about 12% lower than maize at the market yard.
Sorghum (Jowar)prices also went up this week to Rs.10774, adding 5.75% to the prices. Prices are about 10% higher than last year and 24% higher than maize.
Barley prices were down of slower exports. Prices wee close to Rs.10,729 per MT, a loss of 2.4% over last week, but prices are higher than last year by 34.4%.
Corn prices lower in US – on good weather and USDA projects lower production
As good weather (near perfect) prevailed in US for a week in the corn belt, corn prices shed almost 9.5% for July – Dec contracts, close in the range of $267 – 279 per MT from $293 – 306 per MT last week.
USDA also came out with the new production numbers. For the year 2007/08 corn ending stocks are projected higher at 21 MMT due to reductions in food, seed, and industrial use. Production for 2008/09, however, is projected lower at 297.57 MMT. As indicated in the Acreage report, heavy June rains and flooding reduced the share of harvested area in the higher- yielding Corn Belt states.
Amit Sachdev
India Representative,
U S Grains Council
bluecross303@gmail.com
Saturday, July 05, 2008
Maize prices tumble in India – courtesy ban on exports
Maize prices tumble in India – courtesy ban on exports
As inflation touched 11.42% for the week ending Jun 14 (announced on Jun 28), GOI cam into action and in-order to tame the prices banned exports of maize from India on July 03, 2008 until Oct 15, 2008. Current export numbers available indicate that about 2.6 MMT of maize have been exported till date.
Maize prices were close to Rs.8394 per MT at the market yard for the week ending June 27, about 1.3% above previous week’s close. By July 2 the prices had stated to come down and were down by 3% to Rs.8143 per MT at the market yard, probably due to the rumors of ban coming into place. By the evening of July 04 the maize prices at the market yard were down to Rs.8067 per MT at the market yard a further down of about 1%. In two weeks the prices were down by about 3.9%.
The future markets crashed following the ban on maize exports. The markets were down by about 9% for Jul/Aug/Sept delivery in 2 days. The Oct delivery prices were down by about 5%. The spot prices at production centers are also down by about 1-3% depending on the location.
For how long the prices were stay at this level is anybody’s guess, but the industry sources believe, that the lower prices will help the poultry and the starch sector in reducing cost of production.
Pearl Millet (Bajra) prices were down in the last week of Jun by 4% to Rs.6887 per MT at the market yard. By the end of the first week of July the prices were up by 4.3% to Rs.7180 per MT the market yard. The commodity is being used by poultry sector as an energy source and the current prices are down by 12% against maize.
Sorghum (Jowar) prices in the last week of June were down by 2% over previous week to Rs.10344 per MT and by the first week of July the prices were Rs.10190 per MT, another drop of 1.5%. The prices though are 21% higher than maize.
Barley prices in the last week of June were Rs.10969 at the market yard, about 4.3% lower than the previous week. By the first week of July the prices were up to Rs.11030 per MT. The futures barley prices were in the region of Rs.13100 – 13500 per MT for July – Oct and fir Dec delivery the prices were close to Rs.13750. The Spot prices at Jaipur have also gone up to Rs.12830 per MT.
Corn prices in US were down this week. CBOT prices for Jul, Sept and Dec delivery were $ 293, $298 and $306 per MT respectively. The prices were down by about $3.5 – 7.5 per MT over previous week.
Corn prices FOB US Gulf, were indicated at $313 - $316 for Jul-Sep, FOB PMW prices were indicated at $351 – 352 per MT. The freight rates have also come down this week. US Gulf – Asia was indicated at $126-$127 per MT, while US PNW – Asia was close to $75-76 per MT for a Panamax (+55000 tons).
As per the USDA report the crop status for corn in Good to excellent condition is 61% this week against 73% last year at the same time. For soybean the Good to excellent status is for 58%, against 68% last year at the same time.
DDGS prices FOB US Gulf are close to $237 per MT, while prices FOB PNW are close to $268 per MT. This is about 75% the value of corn and as per experts it is still a best buy in the times of high feed ingredient prices. The last indicative prices for delivery to South China port would be $350 per MT for a 36% profat product (26% protein and 10% fat).
As inflation touched 11.42% for the week ending Jun 14 (announced on Jun 28), GOI cam into action and in-order to tame the prices banned exports of maize from India on July 03, 2008 until Oct 15, 2008. Current export numbers available indicate that about 2.6 MMT of maize have been exported till date.
Maize prices were close to Rs.8394 per MT at the market yard for the week ending June 27, about 1.3% above previous week’s close. By July 2 the prices had stated to come down and were down by 3% to Rs.8143 per MT at the market yard, probably due to the rumors of ban coming into place. By the evening of July 04 the maize prices at the market yard were down to Rs.8067 per MT at the market yard a further down of about 1%. In two weeks the prices were down by about 3.9%.
The future markets crashed following the ban on maize exports. The markets were down by about 9% for Jul/Aug/Sept delivery in 2 days. The Oct delivery prices were down by about 5%. The spot prices at production centers are also down by about 1-3% depending on the location.
For how long the prices were stay at this level is anybody’s guess, but the industry sources believe, that the lower prices will help the poultry and the starch sector in reducing cost of production.
Pearl Millet (Bajra) prices were down in the last week of Jun by 4% to Rs.6887 per MT at the market yard. By the end of the first week of July the prices were up by 4.3% to Rs.7180 per MT the market yard. The commodity is being used by poultry sector as an energy source and the current prices are down by 12% against maize.
Sorghum (Jowar) prices in the last week of June were down by 2% over previous week to Rs.10344 per MT and by the first week of July the prices were Rs.10190 per MT, another drop of 1.5%. The prices though are 21% higher than maize.
Barley prices in the last week of June were Rs.10969 at the market yard, about 4.3% lower than the previous week. By the first week of July the prices were up to Rs.11030 per MT. The futures barley prices were in the region of Rs.13100 – 13500 per MT for July – Oct and fir Dec delivery the prices were close to Rs.13750. The Spot prices at Jaipur have also gone up to Rs.12830 per MT.
Corn prices in US were down this week. CBOT prices for Jul, Sept and Dec delivery were $ 293, $298 and $306 per MT respectively. The prices were down by about $3.5 – 7.5 per MT over previous week.
Corn prices FOB US Gulf, were indicated at $313 - $316 for Jul-Sep, FOB PMW prices were indicated at $351 – 352 per MT. The freight rates have also come down this week. US Gulf – Asia was indicated at $126-$127 per MT, while US PNW – Asia was close to $75-76 per MT for a Panamax (+55000 tons).
As per the USDA report the crop status for corn in Good to excellent condition is 61% this week against 73% last year at the same time. For soybean the Good to excellent status is for 58%, against 68% last year at the same time.
DDGS prices FOB US Gulf are close to $237 per MT, while prices FOB PNW are close to $268 per MT. This is about 75% the value of corn and as per experts it is still a best buy in the times of high feed ingredient prices. The last indicative prices for delivery to South China port would be $350 per MT for a 36% profat product (26% protein and 10% fat).
Amit Sachdev
India Represenative
U S Grains Council
bluecross303@gmail.com
Saturday, June 21, 2008
Commodity prices move up yet again; High commodity prices, value addition and using alternates
Commodity prices move up yet again
Maize pries moved up this week by another 6%, reaching Rs.8300 per MT at the market yard. The prices are about 10% higher than last year’s prices at the same time. End users are worried that ample stocks may not be for the next quarter (July – Sept). The poultry, livestock and starch sector requires about 1 MMT per month (3 MMT total for the quarter) and another 0.5 MMT till the new crop hits the market in mid October.
Delivery prices in production areas, was close to Rs.9600-9800 per MT, while in consumption areas was Rs.10500-10600 per MT. Maize futures on NCDEX, which had crossed Rs.10000 mark earlier this week for August deliveries closed at Rs.9890 per MT. Though Spot prices ruled high with Nizamabad topping the list at Rs.9150 per MT followed by Davangere at Rs.9087. earliest in the week, Nizamadad prices were Rs.9006 per MT, while Davangere prices were Rs.9123 per MT.
Pearl millet (Bajra) prices were up by 1% over last week to Rs.7200 per MT. Against maize the prices are lower by 15%, making its good product to be used in poultry rations at 5-7% levels. It is being used in Haryana, Rajasthan, Gujarat and Punjab poultry belts.
Sorghum (Jowar) were close to 10,550 per MT this week, up 4.4% over last week. Against maize, the prices were up by 22%. There are some varieties of sorghum, which are selling at par with maize or little lower than maize in Maharashtra, Karnataka and Andhra Pradesh and are being used in poultry rations, but the availability is poor and large quantities may not be available.
Barley prices in the spot market moved up by 1% to 11,460 per MT, Delivered prices were close to Rs.13500-13700 per MT. India exported 250,000 MT of barley in 207/08 and the exports started late in the season. This year, (2008/09), the exports started early (as the new crop came in) and the exports of about 200,000 MT have been completed or will be by the end of this quarter (April – June). While barley futures have more or less been stable this week, December futures have shown an increase from Rs.13770 per MT in the start of the week to Rs.14000 per MT by the end of the week.
Corn on CBOT was this week ended lower at $284 per MT for July delivery and $289.51 per Mt for Sept delivery. Reports indicate that about 4 million acres of land have been lost to flooding in the Midwest this year. And as floods recede, farmers may come out and replant. But it will be wait and watch till then.
High commodity prices, value addition and using alternates
With inflation touching a 13 year high at 11.05% and analysts expecting to to still rise, the industry will need to think of some ways to make more money, reduce costs and provide a value for money product to the consumer.
With the price of feed as it is today, cost of production of broiler is in the range of Rs.42 – 44 per kg live. With the increased cost of production, the risk is too high to be in the live market and the industry needs to make available value added affordable products.
It is a fact that when there are cost shocks in the food production system due to changes in the commodity or farm product market, food prices at retail end tend to increase and retailers will pass on the increased cost to the consumer.
As per an ERS study for the period 1987/2007 in the US the price volatility for eggs was close to 8%, and fruits and vegetables by 5-6%. On the other hand, the price volatility in processed fruits, vegetables and poultry products was less than 3%.
Which basically means that products that require more processing and packaging are usually less directly linked to changes in farm prices, while the price of less processed foods more closely follows the changes in farm prices.
One of the ways to reduce cost of production of eggs and broiler meat would be use alternate sources. The big question though would be what? In the current situation of high prices, no other grains as energy source are available, oil is too high to be used as a source of energy.
One source that can be used effectively is DDG’s – by-product of the ethanol sector, which contains 10-11% fat and 27-28% protein.
In some production areas, where alternate grains are available, farmers are using Pearl Millet (Bajra), specially in Northern India, Rice in central India and parts of Maharashtra, Karnataka, Andhra Pradesh and Tamil Nadu, where it is available. Using these commodities no doubt brings down the costs, but also reduces the efficiency of production.
Amit Sachdev
India Representative,
U S Grains Council
bluecross303@gmail.com
Maize pries moved up this week by another 6%, reaching Rs.8300 per MT at the market yard. The prices are about 10% higher than last year’s prices at the same time. End users are worried that ample stocks may not be for the next quarter (July – Sept). The poultry, livestock and starch sector requires about 1 MMT per month (3 MMT total for the quarter) and another 0.5 MMT till the new crop hits the market in mid October.
Delivery prices in production areas, was close to Rs.9600-9800 per MT, while in consumption areas was Rs.10500-10600 per MT. Maize futures on NCDEX, which had crossed Rs.10000 mark earlier this week for August deliveries closed at Rs.9890 per MT. Though Spot prices ruled high with Nizamabad topping the list at Rs.9150 per MT followed by Davangere at Rs.9087. earliest in the week, Nizamadad prices were Rs.9006 per MT, while Davangere prices were Rs.9123 per MT.
Pearl millet (Bajra) prices were up by 1% over last week to Rs.7200 per MT. Against maize the prices are lower by 15%, making its good product to be used in poultry rations at 5-7% levels. It is being used in Haryana, Rajasthan, Gujarat and Punjab poultry belts.
Sorghum (Jowar) were close to 10,550 per MT this week, up 4.4% over last week. Against maize, the prices were up by 22%. There are some varieties of sorghum, which are selling at par with maize or little lower than maize in Maharashtra, Karnataka and Andhra Pradesh and are being used in poultry rations, but the availability is poor and large quantities may not be available.
Barley prices in the spot market moved up by 1% to 11,460 per MT, Delivered prices were close to Rs.13500-13700 per MT. India exported 250,000 MT of barley in 207/08 and the exports started late in the season. This year, (2008/09), the exports started early (as the new crop came in) and the exports of about 200,000 MT have been completed or will be by the end of this quarter (April – June). While barley futures have more or less been stable this week, December futures have shown an increase from Rs.13770 per MT in the start of the week to Rs.14000 per MT by the end of the week.
Corn on CBOT was this week ended lower at $284 per MT for July delivery and $289.51 per Mt for Sept delivery. Reports indicate that about 4 million acres of land have been lost to flooding in the Midwest this year. And as floods recede, farmers may come out and replant. But it will be wait and watch till then.
High commodity prices, value addition and using alternates
With inflation touching a 13 year high at 11.05% and analysts expecting to to still rise, the industry will need to think of some ways to make more money, reduce costs and provide a value for money product to the consumer.
With the price of feed as it is today, cost of production of broiler is in the range of Rs.42 – 44 per kg live. With the increased cost of production, the risk is too high to be in the live market and the industry needs to make available value added affordable products.
It is a fact that when there are cost shocks in the food production system due to changes in the commodity or farm product market, food prices at retail end tend to increase and retailers will pass on the increased cost to the consumer.
As per an ERS study for the period 1987/2007 in the US the price volatility for eggs was close to 8%, and fruits and vegetables by 5-6%. On the other hand, the price volatility in processed fruits, vegetables and poultry products was less than 3%.
Which basically means that products that require more processing and packaging are usually less directly linked to changes in farm prices, while the price of less processed foods more closely follows the changes in farm prices.
One of the ways to reduce cost of production of eggs and broiler meat would be use alternate sources. The big question though would be what? In the current situation of high prices, no other grains as energy source are available, oil is too high to be used as a source of energy.
One source that can be used effectively is DDG’s – by-product of the ethanol sector, which contains 10-11% fat and 27-28% protein.
In some production areas, where alternate grains are available, farmers are using Pearl Millet (Bajra), specially in Northern India, Rice in central India and parts of Maharashtra, Karnataka, Andhra Pradesh and Tamil Nadu, where it is available. Using these commodities no doubt brings down the costs, but also reduces the efficiency of production.
Amit Sachdev
India Representative,
U S Grains Council
bluecross303@gmail.com
Saturday, June 14, 2008
Commodity prices move up again; GM necessary for world food security and lowering commodity costs
Commodity prices move up again
Maize prices in the local market yards moved yet again this week, to reach Rs.7800 per MT, an increase of 2.5% over last week. The current prices at the market yard are higher by 6% over last year The delivered prices of corn (all costs added) reached Rs.10,500 per MT.. Against the delivered prices, this is about 15-25% higher than last year depending on the location.
Maize was quoted higher in the future market as well on NCDEX. While June delivery was quoted at Rs.9160 per MT, it was higher than last weeks Rs.8775 per MT. Sept was quoted at Rs.9810 per MT, higher than Rs.9620 per MT quotes last week. In the Spot market as well, prices have moved up, Nizamabad Rs.Rs.8694 against Rs.8334, Karimnagar Rs.8465 against Rs.8292, DavangereRs.9000 against Rs.8979.
Pearl Millet (Bajra) prices also moved up by 0.4% this week to reach Rs.7100 per MT. the prices are about 13% higher than last year and about 10% lower than maize at current prices at the market yard. Pearl Millet is being used in layer rations in North India to bring down the cost of production of eggs.
Sorghum (Jowar) prices moved down by about 2% this week, but is still above the Rs.10,000 per MT mark, being quoted at Rs.10,100 per MT on an average. Though small quantities are available at Rs.6000 – 7000 per MT as well, but this cannot be used for poultry feed, due to high tannin content. The prices are about 8.4% higher than last year and also 23% higher than maize in the market yard.
Barley prices also moved up by 2%, averaging Rs.11400 per MT at the market yard, which is 40% higher than last year prices at the market yard. Barley prices also moved up in the spot market. At Jaipur prices were quoted at Rs.13395 per MT against Rs.13110 per MT last week.
Barley futures also moved up, June Rs.13622 against Rs.13490, July Rs.13710 against Rs.13540, August Rs.13900 against Rs.13700, Sept Rs.13950 against Rs.13800 per MT last week.
Rate on inflation for the week ending May 31, 2008 was reported at 8.75%, a 7 year high, mainly on increased prices of grains, oil, milk and vegetables.
Corn prices on CBOT were at an all time high of $7.316 per bushel (for July delivery), translating to $288 per MT. Corn prices breached the $7 per bushel mark ($275 per MT) mark on Wednesday. Price of corn for December delivery (corn that is currently in the ground and will be harvested in Oct) rose to $7.65 per bushel, breaching $300 per MT mark.
Heavy rainfall in the Midwest, the corn belt of Iowa, Nebraska, Kansas and Minnesota has caused flooding, which has lead to higher prices on CBOT, said an analyst. Many believe that a $7 ($275 per MT) corn is not affordable to anyone, cattle, poultry or an ethanol producer.
GM necessary for world food security and lowering commodity costs
The arguments about genetically modified crops are being reconsidered, as the food prices go up even in developed nations like UK. EU, which has a ZERO TOLERANCE for GM products, the trade bodies are at loggerheads with authorities to change the rules and have a threshold limit on presence on unauthorized GM traits (those that are not cleared in EU). EU law does not tolerate the accidental presence of unauthorized GM traits that have been approved elsewhere.
There are areas in Spain, Germany and Portugal, which grow GM maize with EU regulatory approval. The grain so grown moves into Europe and is fed to the animals. In addition the livestock and poultry meat being imported into EU and UK also has been fed GM crop varieties. It is still cheaper to import meat from outside than to produce in EU and that some believe is leading to collapse of the European Livestock sector.
It is also cheaper to produce GM crops. Using no till or minimum till, cuts fuel costs, uses less of chemicals, again uses less fuel used and cost of chemicals. It reduces labor, cost of machinery etc, which all adds up to a major saving, translating to lower cost of production than conventional crops.
If one crop is lost due to the disease, which could have been saved due to crop modification, it is sufficient and with added environmental benefits, and farmers acceptance world wide will change the perception of the end users as well.
(Adapted from articles in the press Telegraph, Reuters etc)
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Maize prices in the local market yards moved yet again this week, to reach Rs.7800 per MT, an increase of 2.5% over last week. The current prices at the market yard are higher by 6% over last year The delivered prices of corn (all costs added) reached Rs.10,500 per MT.. Against the delivered prices, this is about 15-25% higher than last year depending on the location.
Maize was quoted higher in the future market as well on NCDEX. While June delivery was quoted at Rs.9160 per MT, it was higher than last weeks Rs.8775 per MT. Sept was quoted at Rs.9810 per MT, higher than Rs.9620 per MT quotes last week. In the Spot market as well, prices have moved up, Nizamabad Rs.Rs.8694 against Rs.8334, Karimnagar Rs.8465 against Rs.8292, DavangereRs.9000 against Rs.8979.
Pearl Millet (Bajra) prices also moved up by 0.4% this week to reach Rs.7100 per MT. the prices are about 13% higher than last year and about 10% lower than maize at current prices at the market yard. Pearl Millet is being used in layer rations in North India to bring down the cost of production of eggs.
Sorghum (Jowar) prices moved down by about 2% this week, but is still above the Rs.10,000 per MT mark, being quoted at Rs.10,100 per MT on an average. Though small quantities are available at Rs.6000 – 7000 per MT as well, but this cannot be used for poultry feed, due to high tannin content. The prices are about 8.4% higher than last year and also 23% higher than maize in the market yard.
Barley prices also moved up by 2%, averaging Rs.11400 per MT at the market yard, which is 40% higher than last year prices at the market yard. Barley prices also moved up in the spot market. At Jaipur prices were quoted at Rs.13395 per MT against Rs.13110 per MT last week.
Barley futures also moved up, June Rs.13622 against Rs.13490, July Rs.13710 against Rs.13540, August Rs.13900 against Rs.13700, Sept Rs.13950 against Rs.13800 per MT last week.
Rate on inflation for the week ending May 31, 2008 was reported at 8.75%, a 7 year high, mainly on increased prices of grains, oil, milk and vegetables.
Corn prices on CBOT were at an all time high of $7.316 per bushel (for July delivery), translating to $288 per MT. Corn prices breached the $7 per bushel mark ($275 per MT) mark on Wednesday. Price of corn for December delivery (corn that is currently in the ground and will be harvested in Oct) rose to $7.65 per bushel, breaching $300 per MT mark.
Heavy rainfall in the Midwest, the corn belt of Iowa, Nebraska, Kansas and Minnesota has caused flooding, which has lead to higher prices on CBOT, said an analyst. Many believe that a $7 ($275 per MT) corn is not affordable to anyone, cattle, poultry or an ethanol producer.
GM necessary for world food security and lowering commodity costs
The arguments about genetically modified crops are being reconsidered, as the food prices go up even in developed nations like UK. EU, which has a ZERO TOLERANCE for GM products, the trade bodies are at loggerheads with authorities to change the rules and have a threshold limit on presence on unauthorized GM traits (those that are not cleared in EU). EU law does not tolerate the accidental presence of unauthorized GM traits that have been approved elsewhere.
There are areas in Spain, Germany and Portugal, which grow GM maize with EU regulatory approval. The grain so grown moves into Europe and is fed to the animals. In addition the livestock and poultry meat being imported into EU and UK also has been fed GM crop varieties. It is still cheaper to import meat from outside than to produce in EU and that some believe is leading to collapse of the European Livestock sector.
It is also cheaper to produce GM crops. Using no till or minimum till, cuts fuel costs, uses less of chemicals, again uses less fuel used and cost of chemicals. It reduces labor, cost of machinery etc, which all adds up to a major saving, translating to lower cost of production than conventional crops.
If one crop is lost due to the disease, which could have been saved due to crop modification, it is sufficient and with added environmental benefits, and farmers acceptance world wide will change the perception of the end users as well.
(Adapted from articles in the press Telegraph, Reuters etc)
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Sunday, June 08, 2008
Commodity prices skyrocket in India
Commodity prices skyrocket
Maize prices moved up another 4% this week to Rs.7620 per Mt at the market yard. Market reports indicate availability of smaller quantities of maize. Prices are almost 9% higher than last year at the same time. Last year during this period the Mandi prices were under Rs.7000 per MT. Delivery prices in almost all parts of the country have reached Rs.10000 per MT. The high cost is mostly due to increased cost of transportation.
Pearl Millet prices inched another 2% upward to Rs.7090 per MT at the market yard. The prices are 8.6% higher than last year. Against maize the prices are lower by about 7.5% and it does make sense to use pearl millet in layer and broiler rations to reduce the cost of production of eggs and meat respectively.
Sorghum prices have also moved by about 4.5% and are at Rs.10300 per MT. Prices are 6.4% higher than last year prices. Against maize, the prices are higher by 26% on an average. There are some stocks available in the range of Rs.6000 – 7000 per MT at the market yard at some locations, but these may not be suitable for feeding poultry.
Barley prices have also moved up further to Rs.11190 per MT, a jump of 1.6%. Over last year barley prices are up by 41%. It just might not be possible for the end users for meet ends meet.
Corn on CBOT also closed higher at $256 per MT for July delivery. Prices were also much higher for Sept delivery, which closed at $261 per MT.
The rate of inflation touched 8.24% for the week ending May 24, 2008, which is highest in 199 weeks. With the prices of Diesel increased by Rs.3 per liter, the transport cost for all commodities will be higher, which is likely to increase the inflation further.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Maize prices moved up another 4% this week to Rs.7620 per Mt at the market yard. Market reports indicate availability of smaller quantities of maize. Prices are almost 9% higher than last year at the same time. Last year during this period the Mandi prices were under Rs.7000 per MT. Delivery prices in almost all parts of the country have reached Rs.10000 per MT. The high cost is mostly due to increased cost of transportation.
Pearl Millet prices inched another 2% upward to Rs.7090 per MT at the market yard. The prices are 8.6% higher than last year. Against maize the prices are lower by about 7.5% and it does make sense to use pearl millet in layer and broiler rations to reduce the cost of production of eggs and meat respectively.
Sorghum prices have also moved by about 4.5% and are at Rs.10300 per MT. Prices are 6.4% higher than last year prices. Against maize, the prices are higher by 26% on an average. There are some stocks available in the range of Rs.6000 – 7000 per MT at the market yard at some locations, but these may not be suitable for feeding poultry.
Barley prices have also moved up further to Rs.11190 per MT, a jump of 1.6%. Over last year barley prices are up by 41%. It just might not be possible for the end users for meet ends meet.
Corn on CBOT also closed higher at $256 per MT for July delivery. Prices were also much higher for Sept delivery, which closed at $261 per MT.
The rate of inflation touched 8.24% for the week ending May 24, 2008, which is highest in 199 weeks. With the prices of Diesel increased by Rs.3 per liter, the transport cost for all commodities will be higher, which is likely to increase the inflation further.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Subscribe to:
Posts (Atom)