Volatile coarse grain markets, exports to continue from India
Maize prices moved up by another 3.4% this week to reach Rs.8600 per MT at the market yard. Prices are higher than last year prices by 16.4%. As there are averages, reports are price of maize in the interiors is close to Rs.7600 per MT and in some cases upto Rs.8000 per MT. Price of corn in non producing states like Punjab are reported at Rs.9000 per Mt while in Andhra a ear Rs.8000, and Karnataka as low as Rs.7700 per MT. Reports indicate that prices at Kakinada are at Rs.8600 per MT as most exports are likely to take place from Kakinada.
Bihar crop has started to arrive in the market, but with a high moisture content (18-20%) and this cannot be used by the poultry industry and must be dried to ) before it is packed and stored.
In the spot market, maize prices moved up in Davangere and Nizamabad by 1.3 and 0.25% respectively over last week prices, but remained lower than MSP values by Rs.400 – 600 per MT. In Karimnagar though, prices moved lower by 1% to Rs.7900 per MT. In the futures market, prices moved up slightly by 0.3 – 0.8% over last week, but overall prices remained lower than MSP of Rs.8400 per MT. Would that mean that GOI or state agencies will step in to purchase corn, is a question. There is a tender from FCI, South zone to sell 326,000 tons of maize in the open market (from Karnataka). This is to clear the space for the wheat and rice purchases.
Pearl Millet (Bajra) prices also moved up by 4% to reach Rs.8835 per MT at the market yard on average, pan India. Prices are higher than last year by 17.3%. Against maize, prices are higher by 2.8%.
Sorghum (Jowar) prices added 7% to its tally, reaching Rs.10,349 per MT. The prices however remained lower than last year by 1.5% and higher than maize by 17%.
Barley prices also added 6%, reaching Rs.8160 per MT at the market yard. The prices were lower than last year by 22%.
Prices in SPOT market fell by 5% as deliveries started in the market. Prices have remained higher than the MSP of Rs.6800 per MT. In the futures as well, prices were reported to be down by 2% over last week.
On CBOT the week ended with prices moving lower by 2.1-2.4%. May $152.53; July $156.44; Sept $160.22. The FOB values (US Gulf) were reported at $174-176 per MT for Apr – July, based on the above prices, while the FOB (PNW) is reported at $$189-194 per MT. Sorghum prices (FOB US gulf) were lower than corn at $167-170 per MT.
The freight rates have remained stable this week, US Gulf-Japan $40, PNW-Japan $20, US Gulf - China $44, while Brazil - China $35 per MT. Delivery values for corn in SEA region would be close to $200 – 209 per MT depending on the origin. Farmers in Argentina have a 7 day strike to eliminate export tax and no easy solution is on the horizon as per reports. Brazil is reported sales of corn at $167 FOB.
DDGS prices have moved up slightly to $216-220 per MT delivered SEA region. The issue still is the availability of containers for delivery to SEA region. Delivery of DDGS to New Orleans is about $160 per MT on barge.
There are reports that Indian corn is finding buyers as there is price parity against US/Brazilian corn in the SEA region. FOB values were reported at $170 per MT and delivered values $190-194 per MT. The business is mostly in containers.
Maize prices moved up by another 3.4% this week to reach Rs.8600 per MT at the market yard. Prices are higher than last year prices by 16.4%. As there are averages, reports are price of maize in the interiors is close to Rs.7600 per MT and in some cases upto Rs.8000 per MT. Price of corn in non producing states like Punjab are reported at Rs.9000 per Mt while in Andhra a ear Rs.8000, and Karnataka as low as Rs.7700 per MT. Reports indicate that prices at Kakinada are at Rs.8600 per MT as most exports are likely to take place from Kakinada.
Bihar crop has started to arrive in the market, but with a high moisture content (18-20%) and this cannot be used by the poultry industry and must be dried to ) before it is packed and stored.
In the spot market, maize prices moved up in Davangere and Nizamabad by 1.3 and 0.25% respectively over last week prices, but remained lower than MSP values by Rs.400 – 600 per MT. In Karimnagar though, prices moved lower by 1% to Rs.7900 per MT. In the futures market, prices moved up slightly by 0.3 – 0.8% over last week, but overall prices remained lower than MSP of Rs.8400 per MT. Would that mean that GOI or state agencies will step in to purchase corn, is a question. There is a tender from FCI, South zone to sell 326,000 tons of maize in the open market (from Karnataka). This is to clear the space for the wheat and rice purchases.
Pearl Millet (Bajra) prices also moved up by 4% to reach Rs.8835 per MT at the market yard on average, pan India. Prices are higher than last year by 17.3%. Against maize, prices are higher by 2.8%.
Sorghum (Jowar) prices added 7% to its tally, reaching Rs.10,349 per MT. The prices however remained lower than last year by 1.5% and higher than maize by 17%.
Barley prices also added 6%, reaching Rs.8160 per MT at the market yard. The prices were lower than last year by 22%.
Prices in SPOT market fell by 5% as deliveries started in the market. Prices have remained higher than the MSP of Rs.6800 per MT. In the futures as well, prices were reported to be down by 2% over last week.
On CBOT the week ended with prices moving lower by 2.1-2.4%. May $152.53; July $156.44; Sept $160.22. The FOB values (US Gulf) were reported at $174-176 per MT for Apr – July, based on the above prices, while the FOB (PNW) is reported at $$189-194 per MT. Sorghum prices (FOB US gulf) were lower than corn at $167-170 per MT.
The freight rates have remained stable this week, US Gulf-Japan $40, PNW-Japan $20, US Gulf - China $44, while Brazil - China $35 per MT. Delivery values for corn in SEA region would be close to $200 – 209 per MT depending on the origin. Farmers in Argentina have a 7 day strike to eliminate export tax and no easy solution is on the horizon as per reports. Brazil is reported sales of corn at $167 FOB.
DDGS prices have moved up slightly to $216-220 per MT delivered SEA region. The issue still is the availability of containers for delivery to SEA region. Delivery of DDGS to New Orleans is about $160 per MT on barge.
There are reports that Indian corn is finding buyers as there is price parity against US/Brazilian corn in the SEA region. FOB values were reported at $170 per MT and delivered values $190-194 per MT. The business is mostly in containers.
Poultry farmers make profit in India
Even though there is a down trend, the poultry farmers selling live chicken are making money. SBM prices are higher, but corn prices are stable. The placement of broilers is still at about 35- 36 million per week, while the demand may be higher, which is pulling the prices up. Bombay prices were Rs.52 per kg (live),while the cost of production is about Rs.40 per kg (farm gate).
There are areas in North India, where people will not be consuming Non Veg food for the next nine days and this may bring the prices lower, but to what extent is still to be seen.
Reports indicate place,ent of broiler parent stocks in many areas in the last 2 months, which will be comming in production in the next 6 - 7 months and supplies of chicken would increase sometime from August onwards.
Amit Sachdev
India Representative
U S Grains Council
usgcindia@gmail.com
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