Commodities plunge further in India
Maize prices remained stable at the market yard this week at Rs.7900 per MT. prices are about 16% higher than last year’s prices. There are reports that GOI is considering a second package for the agriculture sector and provide a 10% incentive for export of maize and SBM from India. The incentive will be on FOB prices and the export value of maize, would still be higher for Indian corn even after a 10% incentive, specially on bulk corn exports from India.
In the futures market as well maize prices slumped this week by about 1% for Dec delivery to Rs.8040 per MT. Spot prices in Nizamabad, Davangere and Karimnagar were similar to last week to Rs.8500-8600 per MT levels.
Pearl Millet (Bajra) prices slumped by 4.6% this week to reach Rs.7375 per MT. Against maize, the prices are lower by 7.4% and are higher than last year by 12.5%.
Sorghum (Jowar) prices slumped by 5.3% to Rs.8700 per MT at the market yard. The prices were just about 1% higher than last week and against maize, the prices are 14% higher.
Barley prices plunged 7.8% this week to Rs.8500 per MT. These are the lowest prices since Sept 2007. The prices are lower than last year prices by 23%. In the futures market, barley prices plunged by 3% to Rs.9700 per MT. Even in the spot markets, prices were down by 3.8% to Rs.9790 per MT at Jaipur.
Corn on CBOT bounced back and gained about 22% closing at $141.48 per Mt for Dec delivery and adding 21% to the rally for mar delivery, closing at 146.99 per MT for Mar delivery. For may delivery, corn on CBOT closed at %151.41 per MT. Fob prices (US Gulf) were indicated at $166/167 per MT, while for PNW were at $176/178 per MT. The indicative frieght rates for US gulf - japan were at $23 per MT while PNW-Japan were at a low of $13 per MT.
USDA also released its monthly report, in which the corn production estimates are unchanged, but the demand for corn from ethanol sector has been reduced by 7.62 MMT. In addition, the export projection have been decreased by 2.54 MMT.
The Chinese corn crop estimates have been increased from 156 MMT to 160 MMT. There are unconfirmed reports that China may also give an export incentive of 13%, but even with that the reports say that the Chinese corn prices will be higher than the US and South American corn in the region.
Consistent food safety standards a must for trade
Countries are being urged to adopt internationally consistent food safety standards and it will help in better trade and also assist in building the trust with domestic consumers. The case in point is China, which was recently under limelight due to melamine adulteration in milk and milk products and its possible in the food chain including meat and meat products.
Recently EU opened up its borders for Chinese meat and poultry products after 4 years and this will also help China to move the case in Russia and Middle East.
The move has allowed a number of companies who follow the international food safety regulation to ship heat-treated products to the EU. This move has not only boosted the confidence of exports but has helped the local market as well. The quality has improved as per a report from China.
In an interesting turn of events, the Kerala High Court this week ordered the closure of illegal slaughter houses and meat shops in the State. The local self-governing bodies have been directed to ensure there was no illegal slaughter houses are functioning in the State.
In 2006, the The Supreme Court had also issued notices to the federal government and six states directing them to bring in a uniform legislation to set up slaughter houses for all animals in the country to provide hygienic meat to the population and also provide safeguard against damages to the environment.
The Municipal Corporation of Delhi in 2004 had announced a law that bans the slaughter of poultry in the city and its exhibition at shops. It also gives direction on the shops sized, and which kind of meat can be sold. The law is still to be implemented as the public slaughter facility in Delhi or large/small animals and also poultry is still under review. Though the large animal slaughter facility has been constructed, but is not operational.
Maize prices remained stable at the market yard this week at Rs.7900 per MT. prices are about 16% higher than last year’s prices. There are reports that GOI is considering a second package for the agriculture sector and provide a 10% incentive for export of maize and SBM from India. The incentive will be on FOB prices and the export value of maize, would still be higher for Indian corn even after a 10% incentive, specially on bulk corn exports from India.
In the futures market as well maize prices slumped this week by about 1% for Dec delivery to Rs.8040 per MT. Spot prices in Nizamabad, Davangere and Karimnagar were similar to last week to Rs.8500-8600 per MT levels.
Pearl Millet (Bajra) prices slumped by 4.6% this week to reach Rs.7375 per MT. Against maize, the prices are lower by 7.4% and are higher than last year by 12.5%.
Sorghum (Jowar) prices slumped by 5.3% to Rs.8700 per MT at the market yard. The prices were just about 1% higher than last week and against maize, the prices are 14% higher.
Barley prices plunged 7.8% this week to Rs.8500 per MT. These are the lowest prices since Sept 2007. The prices are lower than last year prices by 23%. In the futures market, barley prices plunged by 3% to Rs.9700 per MT. Even in the spot markets, prices were down by 3.8% to Rs.9790 per MT at Jaipur.
Corn on CBOT bounced back and gained about 22% closing at $141.48 per Mt for Dec delivery and adding 21% to the rally for mar delivery, closing at 146.99 per MT for Mar delivery. For may delivery, corn on CBOT closed at %151.41 per MT. Fob prices (US Gulf) were indicated at $166/167 per MT, while for PNW were at $176/178 per MT. The indicative frieght rates for US gulf - japan were at $23 per MT while PNW-Japan were at a low of $13 per MT.
USDA also released its monthly report, in which the corn production estimates are unchanged, but the demand for corn from ethanol sector has been reduced by 7.62 MMT. In addition, the export projection have been decreased by 2.54 MMT.
The Chinese corn crop estimates have been increased from 156 MMT to 160 MMT. There are unconfirmed reports that China may also give an export incentive of 13%, but even with that the reports say that the Chinese corn prices will be higher than the US and South American corn in the region.
Consistent food safety standards a must for trade
Countries are being urged to adopt internationally consistent food safety standards and it will help in better trade and also assist in building the trust with domestic consumers. The case in point is China, which was recently under limelight due to melamine adulteration in milk and milk products and its possible in the food chain including meat and meat products.
Recently EU opened up its borders for Chinese meat and poultry products after 4 years and this will also help China to move the case in Russia and Middle East.
The move has allowed a number of companies who follow the international food safety regulation to ship heat-treated products to the EU. This move has not only boosted the confidence of exports but has helped the local market as well. The quality has improved as per a report from China.
In an interesting turn of events, the Kerala High Court this week ordered the closure of illegal slaughter houses and meat shops in the State. The local self-governing bodies have been directed to ensure there was no illegal slaughter houses are functioning in the State.
In 2006, the The Supreme Court had also issued notices to the federal government and six states directing them to bring in a uniform legislation to set up slaughter houses for all animals in the country to provide hygienic meat to the population and also provide safeguard against damages to the environment.
The Municipal Corporation of Delhi in 2004 had announced a law that bans the slaughter of poultry in the city and its exhibition at shops. It also gives direction on the shops sized, and which kind of meat can be sold. The law is still to be implemented as the public slaughter facility in Delhi or large/small animals and also poultry is still under review. Though the large animal slaughter facility has been constructed, but is not operational.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
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