Prices mixed in India, move up in the US
Average corn prices moved up by 1.5% this week at the market yard to Rs.8683 per MT, which is about 17% higher than last year. Reports are that the Karnataka tender has been canceled and a retender will be called possibly by next month.
In the futures market, prices moved lower for June 0.5% to Rs.8850; July 1.45% at Rs.9115; at Aug 2.88% at Rs.9265 per MT. In the spot markets of Nizamabad and Davangere the prices remained stable at close to last week's values.
Preliminary planting reports indicate that due to high Soybean prices, farmers may increase the soy acreage by 10%. Also cotton acreage may increase as the prices moved up and imports of cotton are one. GOI of India purchase cotton, which helped in price stabilization. Overall expectation is that the oil seed area in India may go up by 4-5% by some sources.
Pearl Millet (Bajra) prices moved lower 1.2% to reach Rs.9050 per MT. The prices though are 23% higher than last year. Against maize the prices are 4.1% higher. Prices in Rajasthan and Maharashtra are Rs.9200 and 9400 per MT respectively.
Sorghum (Jowar) prices moved lower by 1.4% to Rs.10270 per MT, but against last year, prices are higher by 5.4%. Against maize the prices are higher by 15.4%. White sorghum is prices close to Rs.15000 per MT, while the cheapest sorghum variety is Rs.7000 per MT (Red).
Barley prices moved lower by 7.4% to Rs.8100 per MT on average. Prices are lower than last year by 26%. In the futures market as well, prices moved lower, For July delivery prices wee 3.1% lower than last week at Rs.9362 and for Sept it was 2.1% lower than last week at Rs.8640. In the spot market (Jaipur), prices were down by 0.5%.
In the International market (CBOT), corn prices moved up by 3.1 - 3.2%. Jun delivery was up to $169.36, while Sept was up at $173.3 and Dec at $177.94 per MT. FOB US Gulf prices were indicated at $188/193 per MT, while FOB PNW was indicated at $202/206 per MT. FOB US gulf prices for Sorghum moved up to $184/187 for Jun-Aug delivery.
Corn planting in US is lagging behind and USDA reports the planting at 62%, against 70% completed last year. Sorghum planting is complete at 38%, similar to last year while Barley is at about 50% against 89% last year. The wet days and planting delays could be one reason for the increased corn prices in US.
DDGS prices added $10 to its tally on high export demand and also increased domestic usage in the wake of higher SBM prices. Poultry and dairy operations in SEA region, Middle East region continue to increase usage of DDGS in poultry, fish and dairy rations. Current prices of DDGS delivered SEA region are about $240 per MT.
Freight rates moved higher a notch to $49/50 per MT for US Gulf - Japan sector, while PNW-Japan freight rates were $26/27 per MT as per reports. Freight rates from Argentina/Brazil to China have also moved up to $45/46 per MT this week.
Reports are that no price is being quoted for corn exports from Argentina and for the next month or so corn would be available from Brazil and Paraguay. For the Indian subcontinent, Bangladesh remains a good buyer as local prices are $205/207 per MT and the crop is expected to be lower than last year. India's exports might be slower as the Rupee appreciated, but higher prices in US could turn the tide again.
US congress accepted President Obama's Climate Change Bill, that aims to reduce green house gases in US, increase fuel efficiency of vehicles in US and use of renewable sources. Analysts believe that the ethanol production and blending will get a boost in US and the ethanol economy will be better over the next couple of years.
Amit Sachdev
India Representative
U S Grains Council
usgcindia@gmail.com
Average corn prices moved up by 1.5% this week at the market yard to Rs.8683 per MT, which is about 17% higher than last year. Reports are that the Karnataka tender has been canceled and a retender will be called possibly by next month.
In the futures market, prices moved lower for June 0.5% to Rs.8850; July 1.45% at Rs.9115; at Aug 2.88% at Rs.9265 per MT. In the spot markets of Nizamabad and Davangere the prices remained stable at close to last week's values.
Preliminary planting reports indicate that due to high Soybean prices, farmers may increase the soy acreage by 10%. Also cotton acreage may increase as the prices moved up and imports of cotton are one. GOI of India purchase cotton, which helped in price stabilization. Overall expectation is that the oil seed area in India may go up by 4-5% by some sources.
Pearl Millet (Bajra) prices moved lower 1.2% to reach Rs.9050 per MT. The prices though are 23% higher than last year. Against maize the prices are 4.1% higher. Prices in Rajasthan and Maharashtra are Rs.9200 and 9400 per MT respectively.
Sorghum (Jowar) prices moved lower by 1.4% to Rs.10270 per MT, but against last year, prices are higher by 5.4%. Against maize the prices are higher by 15.4%. White sorghum is prices close to Rs.15000 per MT, while the cheapest sorghum variety is Rs.7000 per MT (Red).
Barley prices moved lower by 7.4% to Rs.8100 per MT on average. Prices are lower than last year by 26%. In the futures market as well, prices moved lower, For July delivery prices wee 3.1% lower than last week at Rs.9362 and for Sept it was 2.1% lower than last week at Rs.8640. In the spot market (Jaipur), prices were down by 0.5%.
In the International market (CBOT), corn prices moved up by 3.1 - 3.2%. Jun delivery was up to $169.36, while Sept was up at $173.3 and Dec at $177.94 per MT. FOB US Gulf prices were indicated at $188/193 per MT, while FOB PNW was indicated at $202/206 per MT. FOB US gulf prices for Sorghum moved up to $184/187 for Jun-Aug delivery.
Corn planting in US is lagging behind and USDA reports the planting at 62%, against 70% completed last year. Sorghum planting is complete at 38%, similar to last year while Barley is at about 50% against 89% last year. The wet days and planting delays could be one reason for the increased corn prices in US.
DDGS prices added $10 to its tally on high export demand and also increased domestic usage in the wake of higher SBM prices. Poultry and dairy operations in SEA region, Middle East region continue to increase usage of DDGS in poultry, fish and dairy rations. Current prices of DDGS delivered SEA region are about $240 per MT.
Freight rates moved higher a notch to $49/50 per MT for US Gulf - Japan sector, while PNW-Japan freight rates were $26/27 per MT as per reports. Freight rates from Argentina/Brazil to China have also moved up to $45/46 per MT this week.
Reports are that no price is being quoted for corn exports from Argentina and for the next month or so corn would be available from Brazil and Paraguay. For the Indian subcontinent, Bangladesh remains a good buyer as local prices are $205/207 per MT and the crop is expected to be lower than last year. India's exports might be slower as the Rupee appreciated, but higher prices in US could turn the tide again.
US congress accepted President Obama's Climate Change Bill, that aims to reduce green house gases in US, increase fuel efficiency of vehicles in US and use of renewable sources. Analysts believe that the ethanol production and blending will get a boost in US and the ethanol economy will be better over the next couple of years.
Amit Sachdev
India Representative
U S Grains Council
usgcindia@gmail.com
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