Coarse grain prices move up, though slightly
Maize prices in the market yard averaged 1.2% higher than last week to Rs.8242 per MT. Though the prices are lower than the Minimum Support Price announced by GOI. The price was also higher than last year’s price by 21.5%. In the future markets the price ranged from Rs.8350 – 8540 per MT, which to many farmers is not a remunerative value. In the spot markets though the higher pries was quoted in Davangere (Rs.10032 per MT), while the lowest in Nizamabad (Rs.9006 per MT)
Pearl Millet (Bajra) prices also moved up by 2% to Rs.7423 per MT, which is 11.6% lower then the MSP announced by GOI. The prices are 17% higher than last year and about 11% lower than maize in the market yard.
Sorghum (Jowar) prices have slid by 10.75% this week to Rs.8975 per MT at the market yard. And the prices were also 4.7% lower than last year’s prices. Against maize the prices are higher by 8.2%.
Barley prices moved up by 2.86% to Rs.9586 per MT at the market yard. The prices were down by 4.1% against last year.
Corn prices in the US tumbled again this week. Prices on CBOT closed at $ 160.70 per MT for Dec delivery, while for the march the prices tanked to $167.55 per MT. The markets closed about 10% lower than last week.
USDA predicts higher world and US corn production
USDA’s WASDE report, of Oct 10, 2008 for 2008/09 has projected a higher corn crop of 309.89 MMT in the new estimates against Sept estimates of 306.65 MMT. One of reasons attributed in a good rainfall in September in the Mideast of the country. The new estimates also project an increase in the ending stocks to 29.31 MMT against last month’s estimates of 25.86 MMT. The report also projects increase in corn use in feed to 135.89 MMT, but a decrease in food, seed residual use to 135.50 MMT , mostly owing to lower corn use for ethanol production, which is expected to be 101.6 MMT against last month’s estimate of 104.1 MMT.
As per a report published by the Brazilian Ministry of Agriculture, soybean production in Brazil is projected to rise to 61.3 MMT for the 2008/09 crop, up from last year’s 60.1 MMT. Area under soybean is likely to go up at the cost of corn sowing. Area under corn in Brazil is likely t0 14.4 million hectares, slightly lower than 14.7 million hectares to produce 55 – 56 MMT of corn, lower than last year’s production of 58.6 MMT. The average production from corn in Brazil is expected to be 4.06 tons/hac, almost double the Indian productivity. As per the USDA report, the ending stocks of corn in Braxil are expected to be lower at 9.24 MMT against last month’s estimate of 14.95 MMT and the total use is expected to be 40 MMT against 38 MMT.
As the input costs have soared as in other countries, farmers are making judicious use of inputs. The fact is that it is cheaper to sow soybean than corn, and a higher area does not guarantee a higher production as farmers may not apply enough fertilizers or pesticides due to higher expense.
The report also projects that the exports from Argentina will be lower by 2 MMT to 11 MMT and feed use in Argentina is also expected to increase to 5.6 MMT against 3.8 MMT projected last month.
The world’s corn production in 2008/09 is estimated to increase to 785.25 MMT and feed use increased to 492.34 MMT. The ending stocks though are expected to be 107.76 MMT, down by 2.18 MMT against last month’s estimates.
Maize prices in the market yard averaged 1.2% higher than last week to Rs.8242 per MT. Though the prices are lower than the Minimum Support Price announced by GOI. The price was also higher than last year’s price by 21.5%. In the future markets the price ranged from Rs.8350 – 8540 per MT, which to many farmers is not a remunerative value. In the spot markets though the higher pries was quoted in Davangere (Rs.10032 per MT), while the lowest in Nizamabad (Rs.9006 per MT)
Pearl Millet (Bajra) prices also moved up by 2% to Rs.7423 per MT, which is 11.6% lower then the MSP announced by GOI. The prices are 17% higher than last year and about 11% lower than maize in the market yard.
Sorghum (Jowar) prices have slid by 10.75% this week to Rs.8975 per MT at the market yard. And the prices were also 4.7% lower than last year’s prices. Against maize the prices are higher by 8.2%.
Barley prices moved up by 2.86% to Rs.9586 per MT at the market yard. The prices were down by 4.1% against last year.
Corn prices in the US tumbled again this week. Prices on CBOT closed at $ 160.70 per MT for Dec delivery, while for the march the prices tanked to $167.55 per MT. The markets closed about 10% lower than last week.
USDA predicts higher world and US corn production
USDA’s WASDE report, of Oct 10, 2008 for 2008/09 has projected a higher corn crop of 309.89 MMT in the new estimates against Sept estimates of 306.65 MMT. One of reasons attributed in a good rainfall in September in the Mideast of the country. The new estimates also project an increase in the ending stocks to 29.31 MMT against last month’s estimates of 25.86 MMT. The report also projects increase in corn use in feed to 135.89 MMT, but a decrease in food, seed residual use to 135.50 MMT , mostly owing to lower corn use for ethanol production, which is expected to be 101.6 MMT against last month’s estimate of 104.1 MMT.
As per a report published by the Brazilian Ministry of Agriculture, soybean production in Brazil is projected to rise to 61.3 MMT for the 2008/09 crop, up from last year’s 60.1 MMT. Area under soybean is likely to go up at the cost of corn sowing. Area under corn in Brazil is likely t0 14.4 million hectares, slightly lower than 14.7 million hectares to produce 55 – 56 MMT of corn, lower than last year’s production of 58.6 MMT. The average production from corn in Brazil is expected to be 4.06 tons/hac, almost double the Indian productivity. As per the USDA report, the ending stocks of corn in Braxil are expected to be lower at 9.24 MMT against last month’s estimate of 14.95 MMT and the total use is expected to be 40 MMT against 38 MMT.
As the input costs have soared as in other countries, farmers are making judicious use of inputs. The fact is that it is cheaper to sow soybean than corn, and a higher area does not guarantee a higher production as farmers may not apply enough fertilizers or pesticides due to higher expense.
The report also projects that the exports from Argentina will be lower by 2 MMT to 11 MMT and feed use in Argentina is also expected to increase to 5.6 MMT against 3.8 MMT projected last month.
The world’s corn production in 2008/09 is estimated to increase to 785.25 MMT and feed use increased to 492.34 MMT. The ending stocks though are expected to be 107.76 MMT, down by 2.18 MMT against last month’s estimates.
Amit Sachdev
India Represenative
US Grains Council
bluecross303@gmail.com
No comments:
Post a Comment