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 Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com