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
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