Mixed market signals for coarse grains
Maize prices at the market yard remained stable as last week to Rs.8200-8300 per MT levels on pan India basis. While prices in some production centers like Andhra Pradesh were closer to Minimum Support Prices, prices in Karnataka and Tamil nadu were lower at Rs.7850 per MT. Trade is of the opinion that the Karnataka crop is slowly getting over and next month would see a surge in prices. Reports from Bihar indicate increased arrival and thus a pressure on prices, which range from Rs.7700 – 8000 per MT. Bihar crop is expected to be down by 15-20% on initial reports from Bihar traders. The average price of maize in April was Rs.8288 per MT, about 16% higher than April 2008 and similar to last month (Mar 2009).
The market in Bangladesh is expanding slowly and demand is higher for corn. Local prices are ranging from $202-205 per MT for local maize and production is also expected to be lower by about 30%. Exports from India are catching up and prices range from $180-182 per MT at the border.
On the future markets corn prices have slumped by 2-4%, possibly due to sentiments that the Swine Flu (Infuenza A – H1N1) might effect exports. The spot prices in Nizamabad remained at Rs.8500 range, while in Davangere prices were higher by 1.38% to Rs.8031 per MT.
Pearl Millet (Bajra) prices were lower by 2% and were close to Rs.8850 per Mt at the market yard. Prices were higher than last year by 16% and also higher than maize by 7%. While in Uttar Pradesh the prices of Bajra may be lower than maize, in Rajasthan prices are rulling higher than maize as the commodity is staple in Rajasthan. Average prices of Pearl Millet in April 2009 was Rs.8910 per MT, 21.4% higher than April 2008 average and 3.74% higher than March 2009 average.
Sorghum (Jowar) pries moved by 2.2% crossing Rs.10,000 per MT mark this week. Against last year, prices are 2.6% higher and also higher by 18% against maize. Average price of Sorghum in April 2009 was Rs.9736 per MT, about 2.6% lower than April 2008 and 1.52% higher than Mar 2009 prices.
Barley prices moved up slightly by 2.2% to Rs.8000 range and were reported lower than last year by 21% in the end of April. Average April 2009 prices were Rs.8077 per MT, about 16% lower than April 2008 and about 3% lower than Mar 2009 prices.
In the futures market the prices slumped on anticipation of higher deliveries in future. The prices were down by 1.2 – 1.85%. While May delivery was down by 1.85% to Rs.9450 per MT, Sept delivery was down by 1.2% to 9850 per MT. Jaipur spot market was down by 1.2% to Rs.8985 per MT. The malt manufactured from barley is used primarily for beer and the market in 2008 has grown by 9% and is expected to grow in 2009 by 10%. Malt is also used in health drinks, and again the category is expected to grow by 8-10% in 2009 as per reports.
On CBOT corn prices moved up against last week by 6.5-7.5%, due to planting concerns. Corn for may delivery was quotes at $159.91; Jun $162.82; Sept $166.29; Dec $170.54 per MT. Current planting is about 22% complete against five year average of 28%.
Corn prices FOB US gulf were $180-186 per MT for Jun-Aug, while FOB PNW was $196-200 per MT. Sorghum of FOB basis was quoted at $175/177 per MT (US Gulf).
DDGS prices have strengthened and current CNF prices to SEA region are $220-225 per MT. Freight rates have come down somewhat, while US Gulf – Japan is down to 440 per MT, PNW-Japan is down to $21 per MT. Brazil-Argentina to China freight is indicated at $36/37 per MT.
Maize prices at the market yard remained stable as last week to Rs.8200-8300 per MT levels on pan India basis. While prices in some production centers like Andhra Pradesh were closer to Minimum Support Prices, prices in Karnataka and Tamil nadu were lower at Rs.7850 per MT. Trade is of the opinion that the Karnataka crop is slowly getting over and next month would see a surge in prices. Reports from Bihar indicate increased arrival and thus a pressure on prices, which range from Rs.7700 – 8000 per MT. Bihar crop is expected to be down by 15-20% on initial reports from Bihar traders. The average price of maize in April was Rs.8288 per MT, about 16% higher than April 2008 and similar to last month (Mar 2009).
The market in Bangladesh is expanding slowly and demand is higher for corn. Local prices are ranging from $202-205 per MT for local maize and production is also expected to be lower by about 30%. Exports from India are catching up and prices range from $180-182 per MT at the border.
On the future markets corn prices have slumped by 2-4%, possibly due to sentiments that the Swine Flu (Infuenza A – H1N1) might effect exports. The spot prices in Nizamabad remained at Rs.8500 range, while in Davangere prices were higher by 1.38% to Rs.8031 per MT.
Pearl Millet (Bajra) prices were lower by 2% and were close to Rs.8850 per Mt at the market yard. Prices were higher than last year by 16% and also higher than maize by 7%. While in Uttar Pradesh the prices of Bajra may be lower than maize, in Rajasthan prices are rulling higher than maize as the commodity is staple in Rajasthan. Average prices of Pearl Millet in April 2009 was Rs.8910 per MT, 21.4% higher than April 2008 average and 3.74% higher than March 2009 average.
Sorghum (Jowar) pries moved by 2.2% crossing Rs.10,000 per MT mark this week. Against last year, prices are 2.6% higher and also higher by 18% against maize. Average price of Sorghum in April 2009 was Rs.9736 per MT, about 2.6% lower than April 2008 and 1.52% higher than Mar 2009 prices.
Barley prices moved up slightly by 2.2% to Rs.8000 range and were reported lower than last year by 21% in the end of April. Average April 2009 prices were Rs.8077 per MT, about 16% lower than April 2008 and about 3% lower than Mar 2009 prices.
In the futures market the prices slumped on anticipation of higher deliveries in future. The prices were down by 1.2 – 1.85%. While May delivery was down by 1.85% to Rs.9450 per MT, Sept delivery was down by 1.2% to 9850 per MT. Jaipur spot market was down by 1.2% to Rs.8985 per MT. The malt manufactured from barley is used primarily for beer and the market in 2008 has grown by 9% and is expected to grow in 2009 by 10%. Malt is also used in health drinks, and again the category is expected to grow by 8-10% in 2009 as per reports.
On CBOT corn prices moved up against last week by 6.5-7.5%, due to planting concerns. Corn for may delivery was quotes at $159.91; Jun $162.82; Sept $166.29; Dec $170.54 per MT. Current planting is about 22% complete against five year average of 28%.
Corn prices FOB US gulf were $180-186 per MT for Jun-Aug, while FOB PNW was $196-200 per MT. Sorghum of FOB basis was quoted at $175/177 per MT (US Gulf).
DDGS prices have strengthened and current CNF prices to SEA region are $220-225 per MT. Freight rates have come down somewhat, while US Gulf – Japan is down to 440 per MT, PNW-Japan is down to $21 per MT. Brazil-Argentina to China freight is indicated at $36/37 per MT.
Amit Sachdev
India Representative
U S Grains Council
usgcindia@gmail.com
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