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
1 comment:
Dear Amitji,
I have a small querry,
Can Indian poultry Import DDGS ?
If so,will it be cheaper as compared to maize ?
Can i have your valued views please ?
with regards
Umesh Ved
Pune.
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