Commodity prices – mixed trends
This week maize prices were lower at Rs.7200 per MT at the market yard, down by almost 2.6% over previous week. The prices though were higher than last year by 2.8%. Delivered prices in Gujarat were Rs.8400 per MT while in Hyderabad the delivered prices were close to Rs.7900 – 8000 per MT.
Pearl Millet (bajra) prices were also down in the market yard by 5% to Rs.7330 per MT on good deliveries in Rajasthan, UP and Gujarat. The pries were higher than last year by 10% and against maize the prices were higher by 1.5%.
Sorghum (Jowar) prices move up by 12% over last week to Rs.11390 per MT. The prices were higher than last year by 24%. Against maize the prices were higher by about 37%.
Barley prices remained stable this week to Rs.10190 per MT, but were higher than last year by 32.5%. Reports indicate that some exports from the new crop are being done for Middle East.
Inflation is up to 7.83% on y-o-y basis for the week ending May 03, 2008, primarily due to increase in prices of fruits, vegetables, fuel and food articles.
Corn on CBOT was $232 per MT for July and 237 for Sept shipments. FOB values for US Corn (Gulf) were ranging from $240 – 254 per MT for May to Aug. FOB values for PNW are $282 - $295 for Jun – August shipments.
In the US corn planting is much slower than anticipated due to wet weather. As on May 11, corn plating was 51% complete against 71% last year, Soy was only 11% complete against 26% last year. The dry weather in the last two days has made it possible for improvement in the corn/soya planting.
High freight costs from US benefit Indian sales
Exports of maize from India are still going strong as FOB values to Kandla would be close to $205 per MT. Delivered price to SEA region from India would be close to $ 260 per MT.
Since Pakistan has opened imports of maize from India, there has been some movement from Andhra Pradesh, Karnataka and also Bihar.
Sea freight is at historic high, mainly due to demand and supply and high crude prices. As per analysts another factor adding to historic highs is the strike in Argentina.
U.S.Gulf to Asia (Japan/China) Panamax (55000 tons) freight was indicated at $140.00-$142.00/mt. (July-August values are closer to $131.00/tonne). Panamax rates from the PNW to Asia are indicated at $71.00-72.00/mt. With argentine strike extended to May 21, small corn and soya meal shipments are likely to shift to Indian origin and large shipments to US.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
This week maize prices were lower at Rs.7200 per MT at the market yard, down by almost 2.6% over previous week. The prices though were higher than last year by 2.8%. Delivered prices in Gujarat were Rs.8400 per MT while in Hyderabad the delivered prices were close to Rs.7900 – 8000 per MT.
Pearl Millet (bajra) prices were also down in the market yard by 5% to Rs.7330 per MT on good deliveries in Rajasthan, UP and Gujarat. The pries were higher than last year by 10% and against maize the prices were higher by 1.5%.
Sorghum (Jowar) prices move up by 12% over last week to Rs.11390 per MT. The prices were higher than last year by 24%. Against maize the prices were higher by about 37%.
Barley prices remained stable this week to Rs.10190 per MT, but were higher than last year by 32.5%. Reports indicate that some exports from the new crop are being done for Middle East.
Inflation is up to 7.83% on y-o-y basis for the week ending May 03, 2008, primarily due to increase in prices of fruits, vegetables, fuel and food articles.
Corn on CBOT was $232 per MT for July and 237 for Sept shipments. FOB values for US Corn (Gulf) were ranging from $240 – 254 per MT for May to Aug. FOB values for PNW are $282 - $295 for Jun – August shipments.
In the US corn planting is much slower than anticipated due to wet weather. As on May 11, corn plating was 51% complete against 71% last year, Soy was only 11% complete against 26% last year. The dry weather in the last two days has made it possible for improvement in the corn/soya planting.
High freight costs from US benefit Indian sales
Exports of maize from India are still going strong as FOB values to Kandla would be close to $205 per MT. Delivered price to SEA region from India would be close to $ 260 per MT.
Since Pakistan has opened imports of maize from India, there has been some movement from Andhra Pradesh, Karnataka and also Bihar.
Sea freight is at historic high, mainly due to demand and supply and high crude prices. As per analysts another factor adding to historic highs is the strike in Argentina.
U.S.Gulf to Asia (Japan/China) Panamax (55000 tons) freight was indicated at $140.00-$142.00/mt. (July-August values are closer to $131.00/tonne). Panamax rates from the PNW to Asia are indicated at $71.00-72.00/mt. With argentine strike extended to May 21, small corn and soya meal shipments are likely to shift to Indian origin and large shipments to US.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
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