Coarse grains prices remain volatile
Maize prices were lower this week by 4.4% to Rs.8200 per MT. Prices were reported higher than last year by 12.3%. Mar 2009 average price of maize at market yard was Rs.8311 per MT, about 13.23% higher than mar 2008 and 1.2% higher than Feb 2009 value. Reports are that the export parity is there which will boost exports from India, which might touch 700 – 800 TMT for the marketing year (Oct 2008 – Sept 2009). Rabi arrivals have started in Bihar, Andhra and Karnataka and prices are about 10% lower than MSP at the market yard.
In the futures market though the prices jumped Apr 8345, + 0.6%; May 8715, +3.4%; Jun 8930, +4.8%; July 8900, +4.2%. against last week’s prices. In the spot markets prices were similar to last week.
Pearl Millet (Bajra) prices moved lower by about 1% at the market yard to 8760 per MT. Prices are higher than last year by 12%. Against maize prices are higher than 6%. Mar 2009 average price for Pearl Millet was Rs.8589 per Mt, 22.6% higher than Mar 2008 and 5.39% higher than Feb 2009 averages.
Sorghum (Jowar) prices moved in the lower circuit by 1.8% to Rs.10160 and were similar to last year’s value at the market yard. Against maize, prices were reported to be higher by 19%. Mar 2009 average prices at market yard was Rs.9590 per MT, 1.57% lower than Mar 2008 and 4.56% lower than Feb 2009 averages.
Barley prices moved up by 4.1% this week to Rs.8493 per MT, but remained lower than last year values by 16%. Mar 2009 average prices of Barley was 17.4% lower than Mar 2008 and 2.76% lower than Feb 2009 averages.
In the futures market as well market was up by 3% for Apr – May delivery to 8800 – 8950 levels. In the Spot market as well, prices moved up by 3.7% and were indicated at Rs.8390 per MT.
Corn on CBOT gained about 4 – 4.5% this week and prices were over $4 per bushel, May $159.20; July $163.22; Sept $166.78; Dec $171.41 per MT. FOB Gulf prices were $178/180 per MT; FOB PNW prices 188 per MT. FOB prices pf Brazilian corn are reported at $166 per MT. Sorghum prices, FOB Gulf were $173/174 per MT, inching closer to corn prices.
Dried Distillers Grains with Solubles (DDGS) prices have remained stable and delivered prices to Thailand and Vietnam are close to $215 and $220 per MT respectively. DDGS price in New Orleans (FOB) was indicated at $170 per MT.
Corn planting intentions lower in US
The Mar 31 2009 USDA report has projected that farmers in US intend to plant less of corn, barley, Sorghum & Cotton and intend to increase acreages for Soybean, Oats, Rice, Dry Beans Lentils and Dry peas.
Corn plantings are expected to be at 85 million acres in 2009, down 1% against 2008, Barley is expected at 3.953 million acres, down 6.6%, Sorghum at 6.960 million acres is down by 16% and Cotton is expected to be down by 7%.
Acerage on Soybean is expected at 76.024 million acres, up 0.4%, Oats is expected to be up by 6%, Dry beans by 3%, lentils by 38% and Dry peas by 9%.
Corn plantings are down as the prices have been lower than expected (lower than $4 per bushel cost of production) and the input prices have been unstable, which has led to the decision to lower corn plantings. This though does not mean that the production will be lower. Farmers in US have used the latest technologies to maximize the yields and that may be expected again.
Maize prices were lower this week by 4.4% to Rs.8200 per MT. Prices were reported higher than last year by 12.3%. Mar 2009 average price of maize at market yard was Rs.8311 per MT, about 13.23% higher than mar 2008 and 1.2% higher than Feb 2009 value. Reports are that the export parity is there which will boost exports from India, which might touch 700 – 800 TMT for the marketing year (Oct 2008 – Sept 2009). Rabi arrivals have started in Bihar, Andhra and Karnataka and prices are about 10% lower than MSP at the market yard.
In the futures market though the prices jumped Apr 8345, + 0.6%; May 8715, +3.4%; Jun 8930, +4.8%; July 8900, +4.2%. against last week’s prices. In the spot markets prices were similar to last week.
Pearl Millet (Bajra) prices moved lower by about 1% at the market yard to 8760 per MT. Prices are higher than last year by 12%. Against maize prices are higher than 6%. Mar 2009 average price for Pearl Millet was Rs.8589 per Mt, 22.6% higher than Mar 2008 and 5.39% higher than Feb 2009 averages.
Sorghum (Jowar) prices moved in the lower circuit by 1.8% to Rs.10160 and were similar to last year’s value at the market yard. Against maize, prices were reported to be higher by 19%. Mar 2009 average prices at market yard was Rs.9590 per MT, 1.57% lower than Mar 2008 and 4.56% lower than Feb 2009 averages.
Barley prices moved up by 4.1% this week to Rs.8493 per MT, but remained lower than last year values by 16%. Mar 2009 average prices of Barley was 17.4% lower than Mar 2008 and 2.76% lower than Feb 2009 averages.
In the futures market as well market was up by 3% for Apr – May delivery to 8800 – 8950 levels. In the Spot market as well, prices moved up by 3.7% and were indicated at Rs.8390 per MT.
Corn on CBOT gained about 4 – 4.5% this week and prices were over $4 per bushel, May $159.20; July $163.22; Sept $166.78; Dec $171.41 per MT. FOB Gulf prices were $178/180 per MT; FOB PNW prices 188 per MT. FOB prices pf Brazilian corn are reported at $166 per MT. Sorghum prices, FOB Gulf were $173/174 per MT, inching closer to corn prices.
Dried Distillers Grains with Solubles (DDGS) prices have remained stable and delivered prices to Thailand and Vietnam are close to $215 and $220 per MT respectively. DDGS price in New Orleans (FOB) was indicated at $170 per MT.
Corn planting intentions lower in US
The Mar 31 2009 USDA report has projected that farmers in US intend to plant less of corn, barley, Sorghum & Cotton and intend to increase acreages for Soybean, Oats, Rice, Dry Beans Lentils and Dry peas.
Corn plantings are expected to be at 85 million acres in 2009, down 1% against 2008, Barley is expected at 3.953 million acres, down 6.6%, Sorghum at 6.960 million acres is down by 16% and Cotton is expected to be down by 7%.
Acerage on Soybean is expected at 76.024 million acres, up 0.4%, Oats is expected to be up by 6%, Dry beans by 3%, lentils by 38% and Dry peas by 9%.
Corn plantings are down as the prices have been lower than expected (lower than $4 per bushel cost of production) and the input prices have been unstable, which has led to the decision to lower corn plantings. This though does not mean that the production will be lower. Farmers in US have used the latest technologies to maximize the yields and that may be expected again.
Amit Sachdev
India Representative
U S Grains Council
usgcindia@gmail.com
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