Lower maize prices, lower production estimates for India
Maize prices at the market yard slipped by 0.7% to Rs.8220 per Mt. The prices though remained higher than last year by 13.4%. Maize prices slumped in the futures as well as the spot markets in India. In the futures market, prices were down by Rs.100 – 200 per MT. Feb Rs.8335; Mar 8415; Apr Rs.8525; may Rs.8600; Jun Rs.8650. In the spot markets of Nizambad, prices rules at Rs.8235 per MT, while in Davangere and Karimnagar prices were close to Rs.8200 and 8000 per MT down Rs.100 - 300 per MT.
As per the production estimates for grain production in India released this week by GOI, India’s maize production is expected to be close to 17 MMT, lower than last year's 19.31 MMT. There are reports that maize producers in India have demanded a further increase in Minimum Support Prices (MSP) for maize.
Pearl Millet (Bajra) prices slumped y 1.7% to Rs.7900 – 8000 per MT range. The prices remained higher than last year by 16.6%. Prices are lower than Maize by 3.2%.
Sorghum (Jowar) prices moved up by 17.6% to reach 10950 per MT at the market yard. The prices are higher than last year by 16.9%. Against maize, the prices remained higher by 24.9%.
Barley prices have slumped in by 7.8% this week to Rs.8040 and are also lower than last year by 26.5%. While in USA the prices of barley (feed and malt) have moved up due to high snowfall and sub-zero temperatures.
On CBOT, corn prices were down against last week by 3.6 – 3.7%, Mar $142.98; May $146.92; Jul $150.88, Sep $154.79 per MT. FOB values (US Gulf) for Mar – May region are close to $170 per MT. The ocean freight rates have started to move up, possibly following Chinese iron ore demand. US Gulf – Japan benchmark was at $40, almost 100% increase over last month, while PNW-Japan was at $20 per Mt, again, a 80% increase over last month.
USDA has lowered the corn crop in Argentina to 13.5 MMT, and reports are that the government will issue export licenses for 6 MMT of corn. Crop is Brazil too has been effected by drought and the production has been lowered to 49.5 MMT, about 16% lower than last year’s production. There is a possibility that the lower production in the Argentina and Brazil will help the corn prices stay firm and move up over a period of time.
Amit Sachdev
India Representative
U S Grains Council
E mail: usgcindia@gmail.com
Maize prices at the market yard slipped by 0.7% to Rs.8220 per Mt. The prices though remained higher than last year by 13.4%. Maize prices slumped in the futures as well as the spot markets in India. In the futures market, prices were down by Rs.100 – 200 per MT. Feb Rs.8335; Mar 8415; Apr Rs.8525; may Rs.8600; Jun Rs.8650. In the spot markets of Nizambad, prices rules at Rs.8235 per MT, while in Davangere and Karimnagar prices were close to Rs.8200 and 8000 per MT down Rs.100 - 300 per MT.
As per the production estimates for grain production in India released this week by GOI, India’s maize production is expected to be close to 17 MMT, lower than last year's 19.31 MMT. There are reports that maize producers in India have demanded a further increase in Minimum Support Prices (MSP) for maize.
Pearl Millet (Bajra) prices slumped y 1.7% to Rs.7900 – 8000 per MT range. The prices remained higher than last year by 16.6%. Prices are lower than Maize by 3.2%.
Sorghum (Jowar) prices moved up by 17.6% to reach 10950 per MT at the market yard. The prices are higher than last year by 16.9%. Against maize, the prices remained higher by 24.9%.
Barley prices have slumped in by 7.8% this week to Rs.8040 and are also lower than last year by 26.5%. While in USA the prices of barley (feed and malt) have moved up due to high snowfall and sub-zero temperatures.
On CBOT, corn prices were down against last week by 3.6 – 3.7%, Mar $142.98; May $146.92; Jul $150.88, Sep $154.79 per MT. FOB values (US Gulf) for Mar – May region are close to $170 per MT. The ocean freight rates have started to move up, possibly following Chinese iron ore demand. US Gulf – Japan benchmark was at $40, almost 100% increase over last month, while PNW-Japan was at $20 per Mt, again, a 80% increase over last month.
USDA has lowered the corn crop in Argentina to 13.5 MMT, and reports are that the government will issue export licenses for 6 MMT of corn. Crop is Brazil too has been effected by drought and the production has been lowered to 49.5 MMT, about 16% lower than last year’s production. There is a possibility that the lower production in the Argentina and Brazil will help the corn prices stay firm and move up over a period of time.
Amit Sachdev
India Representative
U S Grains Council
E mail: usgcindia@gmail.com
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