Maize prices at the market yard was down by 1.7% to Rs.8555 per MT this week. Reports indicate that arrivals have started in some parts of Andhra Pradesh and Karnataka. The maximum price for Yellow corn at the market yard was reported at Rs.9250, while for the Red variety the highest reported price was Rs.9500 per MT.In the futures market the prices are up for Jan 2009 delivery by about 5% this week over last week. For months Sept – Dec the prices are up in the range 1 -3%. In the SPOT marks though prices ae stable or are down in the range 0.5 – 1.5% this week.
Pearl Millet prices were up by about 2.7% this week to level at Rs.7650 per MT. The prices are about 12% lower than maize prices.
Sorghum prices were lower by 2.2% this week to reach Rs.9445 per MT at the market yard. Prices are higher than maize by 9.4%.
Barley prices were up by 4% to reach 9560 per MT at the market yard.
On CBOT corn prices for Dec delivery were down from last week’s 221 to 213.45 MT. March delivery was $220 per MT.
Unprecedented rains in all parts of North India, Gujarat, Orissa, parts of Andhra Pradesh have caused heavy damage to the crops. Many areas of Gujarat and Orissa are under flood. Rice crop in parts of Punjab and Haryana where harvest had started is likely to be damaged in these rains. GOI reports indicate that at-least 1.8 mill hac area under Khariff has been affected due to floods uptill Aug 2008. And the new spell of floods in Sept in likely to affect areas in Maharashtra as well.
Latest crop data reveals, Maize sowing lagging behind at 7.12 mill hac in 2008 against 7.351 in 2007. Area under Pearl Millet (Bajra) is down at 7.77 Mill hac against 8.27 Mill hac in 2007. Area under Sorghum is down to 2.913 against last years 3.394 Mill hac. Even area under pulses is down to 10.28 mill hac against 12.30 Mill hc in 2007.
China may have a long term corn supply crunch
The corn demand in China for 2008/09 may be higher than the supplies. China is expected to produce 142.5 MMT while the demand is likely to be 170 MMT as per Government estimates.
Reports from China indicate that farmers have shifted to rice, which is a staple and this will lead to long term supply crunch for corn in China.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
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