Commodity prices move lower
Maize prices at Mandi level (Market yard) moved up by about 1% to 8770 per MT and remained higher than last year by 4.3%. In the futures trade (NCDEX), the price moved lower by 0.5 - 3.8% from July - Oct contracts. prices were ranginging between Rs.9260 for Sept contract to Rs.9550 per Mt for August contract. Near month close, July contract was down to Rs.9380 per MT. In the spot markets too, prices were lower than last week by 0.6 - 1% in Nizamabad (Rs.8868) and Davangere (Rs.8767). It was only at karimnagar that prices were higher at Rs.9029 per MT. Average price of maize at the market yard in June was Rs.8670, about 8% higher than last year and 2.3% higher than May 2009.
One reason for prices being lower is the quantity of maize availability being higher in Karnataka as the tender has been cleared and stocks will be available for sale. This has possibly forced some traders to bring out stocks as well increasing the overall availability of maize in the market.
Pearl Millet (Bajra) prices also moved lower by 1.8% to Rs.8500 per MT at the market yard, but were higher than last year by 19%. Prices were lower than maize by 3.1%. Average price of Pearl Millet at the market yard was Rs.8591 per Mt, 21.58% higher than last year and about 4.11% lower than last month.
Sorghum (Jowar) prices moved a bit higher at the market yard by 1.3% to Rs.10530 per MT and also were higher than last year by 1.8%. Against maize, the prices remained higher by 16.7%. Average sorghum prices were Rs.10775 per MT, 4.34% higher than last year Jun 2008 prices and were 2.38% higher than may 2009 prices.
Barley prices have moved lower at the market yard by 2.3% to Rs.7360 per MT. Prices were lower than last year by 43.4%. Average price of barley at market yard for Jun 2009 was Rs.7857, about 30% lower than last year and 8.91% lower than last month.. In the futures market too, prices moved down by 0.5 - 3.6% and in the spot market (jaipur) prices were lower by 0.8% to Rs.8369 per MT. Current prices of feed barley in the US are indicated at $200 per MT.
Due to increased availability of barley in the India, specially in the Northern Region (Rajasthan, Haryana, Punjab, Uttar Pradesh), dairy farmers are increasinly using barley as an energy source. Reports are a mix of 50-50 mix of corn and barley is being used in some areas. With monsoon playing traunt in North India, the avaiability of greens for dairy is a major issue.
On CBOT, corn prices moved lower by 3.7 - 5.2%. Jul contract closed at $151.25, down 3.75% against last week's close. Similarly Sept and Dec contracts were at $154.16 per MT and $158.02 per MT, losing 3.85% and 5.24% respectively against last week's close. US Gulf FOB value corrected and was down to $175/178 per MT for Jun/Aug delivery. Prices for PNW FOB also were down at $190/194 per MT. With Gulf-Japan and PNW-Japan freight rates also down to $59 and $31 per MT, deliveries to SEA region would be close to $240 per MT. DDGS prices have also decreased as the corn prices have come down. Indicative delivered value to SEA region is $240 per MT, while FOB Gulf is $171 per MT.
In the US use of silage in dairy rations has increased, which has effected the demand of DDGS, but else where in Asia, the demand is there as the Soybean meal prices are still higher.
There are reports that China has some 40 MMT of corn stocks and there could be some exports of corn in the comming time. On the other side, Brazil may be growing less corn due to higher Soybean prices and also as maize requires higher inputs, Soybean would be a better bet for the farmers. What happens in India is still to be seen as the monsoon has covered almost
Amit Sachdev
India Representative
U S Grains Council
email: usgcindia@gmail.com
Maize prices at Mandi level (Market yard) moved up by about 1% to 8770 per MT and remained higher than last year by 4.3%. In the futures trade (NCDEX), the price moved lower by 0.5 - 3.8% from July - Oct contracts. prices were ranginging between Rs.9260 for Sept contract to Rs.9550 per Mt for August contract. Near month close, July contract was down to Rs.9380 per MT. In the spot markets too, prices were lower than last week by 0.6 - 1% in Nizamabad (Rs.8868) and Davangere (Rs.8767). It was only at karimnagar that prices were higher at Rs.9029 per MT. Average price of maize at the market yard in June was Rs.8670, about 8% higher than last year and 2.3% higher than May 2009.
One reason for prices being lower is the quantity of maize availability being higher in Karnataka as the tender has been cleared and stocks will be available for sale. This has possibly forced some traders to bring out stocks as well increasing the overall availability of maize in the market.
Pearl Millet (Bajra) prices also moved lower by 1.8% to Rs.8500 per MT at the market yard, but were higher than last year by 19%. Prices were lower than maize by 3.1%. Average price of Pearl Millet at the market yard was Rs.8591 per Mt, 21.58% higher than last year and about 4.11% lower than last month.
Sorghum (Jowar) prices moved a bit higher at the market yard by 1.3% to Rs.10530 per MT and also were higher than last year by 1.8%. Against maize, the prices remained higher by 16.7%. Average sorghum prices were Rs.10775 per MT, 4.34% higher than last year Jun 2008 prices and were 2.38% higher than may 2009 prices.
Barley prices have moved lower at the market yard by 2.3% to Rs.7360 per MT. Prices were lower than last year by 43.4%. Average price of barley at market yard for Jun 2009 was Rs.7857, about 30% lower than last year and 8.91% lower than last month.. In the futures market too, prices moved down by 0.5 - 3.6% and in the spot market (jaipur) prices were lower by 0.8% to Rs.8369 per MT. Current prices of feed barley in the US are indicated at $200 per MT.
Due to increased availability of barley in the India, specially in the Northern Region (Rajasthan, Haryana, Punjab, Uttar Pradesh), dairy farmers are increasinly using barley as an energy source. Reports are a mix of 50-50 mix of corn and barley is being used in some areas. With monsoon playing traunt in North India, the avaiability of greens for dairy is a major issue.
On CBOT, corn prices moved lower by 3.7 - 5.2%. Jul contract closed at $151.25, down 3.75% against last week's close. Similarly Sept and Dec contracts were at $154.16 per MT and $158.02 per MT, losing 3.85% and 5.24% respectively against last week's close. US Gulf FOB value corrected and was down to $175/178 per MT for Jun/Aug delivery. Prices for PNW FOB also were down at $190/194 per MT. With Gulf-Japan and PNW-Japan freight rates also down to $59 and $31 per MT, deliveries to SEA region would be close to $240 per MT. DDGS prices have also decreased as the corn prices have come down. Indicative delivered value to SEA region is $240 per MT, while FOB Gulf is $171 per MT.
In the US use of silage in dairy rations has increased, which has effected the demand of DDGS, but else where in Asia, the demand is there as the Soybean meal prices are still higher.
There are reports that China has some 40 MMT of corn stocks and there could be some exports of corn in the comming time. On the other side, Brazil may be growing less corn due to higher Soybean prices and also as maize requires higher inputs, Soybean would be a better bet for the farmers. What happens in India is still to be seen as the monsoon has covered almost
Amit Sachdev
India Representative
U S Grains Council
email: usgcindia@gmail.com
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