Commodity prices move up in India
Maize prices moved up by 1.7% on an average, pan India basis at the market yard reaching Rs.8700 per MT. Prices were higher than last year by 10%. In the SPOT markets, prices moved up by 4-6%. In Nizamabad prices were Rs.8780, up 4.3%; Davangere Rs.8641, up 4.9% and in Karimnagar Rs.9019 per MT, up 5.89%. In the Futures market as well, prices moved higher by 3.5-5.5%. August maize was at Rs.10,000 per MT, up 5.5% against last week's close. Even though the sowing has started in India, monsoon is delayed which could be one reason. Also increased demand rom poultry and other users, Starch would be aiding to price increase. It is still 4 months before the new crop comes into the market and prices normally move up during this period.
Pearl Millet Prices were down by 2.4% to Rs.8500 per MT range, but 16% higher than last year. Prices are lower than maize by 2.2% and in areas like Haryana, Rajasthan, where Pearl Millet is grown, it can be repalce maize at 5-10%.
Sorghum prices made a jump of 18.4% this week, to Rs.12000 per MT range. Prices are higher than last year by 16% and also 28% against maize.
Barley prices moved up slightly by 0.6% to Rs.8000 per MT range, but were 42% lower than last year. There could be ample amount of barley in the market which would find use in dairy rations in the production areas. In the SPOT as well as the futures market, barlet prices moved lower than last week by 1-2%.
On CBOT, corn prices were lower than last week by about 4%. July corn was $167.47, Sept $171; Dec $176.21 per MT. FOB gulf was also lower to $190/192 for Jun/Sept delivery, and FOB PNW was down to $205/207 per MT for the same period. Sorghum was indicated at $182/184 per MT for the same period for FOB Gulf delivery and still at a discount on corn.
DDGS prices also moved lower in the US by about $7-10 per MT and delivered prices for SEA region were indicated at close to $250 per MT, while FOB Gulf prices were $203 per MT. One reason being attributed to the lower DDGS prices is the increase in supplies, which is keeping the prices low.
WASDE report released
WASDE report last week estimates a lower production of corn in the world (781.46 MMT) and a lower ending stocks (125.46 MMT) in 2009/10. US is expected to produce 303.16 MMT, against 307 MMT estimated last month and ending stocks will also be relativerly lower at 27.70 MMT. The lower production estimates are due to delayed plantig and thus a lower yield. Usage of corn is expected to be 130 MMT for Feed & residual, lower than last month's estimation of 133 MMT. Food seed and industrial usage is expected to 137.41 MMT wnd the use of corn for ethanol (part of industrial usage) is expected to be 104.14 MMT in 2009/10.
The report can be downloaded using the link below
http://www.usda.gov/oce/commodity/wasde/latest.pdf
Amit Sachdev
India Representative
U S Grains Council
usgcindia@gmail.com
Maize prices moved up by 1.7% on an average, pan India basis at the market yard reaching Rs.8700 per MT. Prices were higher than last year by 10%. In the SPOT markets, prices moved up by 4-6%. In Nizamabad prices were Rs.8780, up 4.3%; Davangere Rs.8641, up 4.9% and in Karimnagar Rs.9019 per MT, up 5.89%. In the Futures market as well, prices moved higher by 3.5-5.5%. August maize was at Rs.10,000 per MT, up 5.5% against last week's close. Even though the sowing has started in India, monsoon is delayed which could be one reason. Also increased demand rom poultry and other users, Starch would be aiding to price increase. It is still 4 months before the new crop comes into the market and prices normally move up during this period.
Pearl Millet Prices were down by 2.4% to Rs.8500 per MT range, but 16% higher than last year. Prices are lower than maize by 2.2% and in areas like Haryana, Rajasthan, where Pearl Millet is grown, it can be repalce maize at 5-10%.
Sorghum prices made a jump of 18.4% this week, to Rs.12000 per MT range. Prices are higher than last year by 16% and also 28% against maize.
Barley prices moved up slightly by 0.6% to Rs.8000 per MT range, but were 42% lower than last year. There could be ample amount of barley in the market which would find use in dairy rations in the production areas. In the SPOT as well as the futures market, barlet prices moved lower than last week by 1-2%.
On CBOT, corn prices were lower than last week by about 4%. July corn was $167.47, Sept $171; Dec $176.21 per MT. FOB gulf was also lower to $190/192 for Jun/Sept delivery, and FOB PNW was down to $205/207 per MT for the same period. Sorghum was indicated at $182/184 per MT for the same period for FOB Gulf delivery and still at a discount on corn.
DDGS prices also moved lower in the US by about $7-10 per MT and delivered prices for SEA region were indicated at close to $250 per MT, while FOB Gulf prices were $203 per MT. One reason being attributed to the lower DDGS prices is the increase in supplies, which is keeping the prices low.
WASDE report released
WASDE report last week estimates a lower production of corn in the world (781.46 MMT) and a lower ending stocks (125.46 MMT) in 2009/10. US is expected to produce 303.16 MMT, against 307 MMT estimated last month and ending stocks will also be relativerly lower at 27.70 MMT. The lower production estimates are due to delayed plantig and thus a lower yield. Usage of corn is expected to be 130 MMT for Feed & residual, lower than last month's estimation of 133 MMT. Food seed and industrial usage is expected to 137.41 MMT wnd the use of corn for ethanol (part of industrial usage) is expected to be 104.14 MMT in 2009/10.
The report can be downloaded using the link below
http://www.usda.gov/oce/commodity/wasde/latest.pdf
Amit Sachdev
India Representative
U S Grains Council
usgcindia@gmail.com
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