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
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