Prices move lower, monsoon delays cause worry
Maize prices were stable at the market yard at Rs.8690 per MT, but prices were higher than last year by 4.6%. In the futures market (NCDEX), prices moved lower by 3-4%. July Rs.9420 per MT, lower by 4.2%; Aug Rs.9710 per MT, lower by 2.9%; Sept 9630 per MT, lower by 3.2%. Oct prices were Rs.9655 per MT. In the SPOT market though prices moved up for Nizamabad at Rs.8927 per MT, up 1.65%; Davangere Rs.8852 per MT, up 2.4%. It was only in Karimnagar prices moved lower by 0.5% to Rs.8979 per MT.
Pearl Millet (Bajra) prices moved up by 2% to Rs.8650 per MT on an average and were 17% higher than last year. Prices are similat to maize prices.
Sorghum prices corrected at Rs.10400 per MT, down 13.4% this week, are are also lower than last year prices by 1.5%. Prices are higher than maize by 16.5%.
Barley prices were down by 2.1% to Rs.7800-7850 per MT range. Prices were lower than last year by 46.4%. In the futues as well as the spot market (Jaipur), prices were lower than by 2-3.5%. Jul Rs.9000 per Mt, down 2.8%; Sep Rs.9170 per MT, down 3.35%; Oct Rs.9712 per MT. Jaipur spot prices Rs.8436 per MT, down 1.8%.
Delayed monsoon is a cause of worry in India. Sowing of major crops, inclusing rice, cotton, oilseeds (soybean), maize etc is lagging behind except in Karnataka. Rainfall this week has been reported 51% below normal and for the period Jun 1 - 17, it is 45% below normal. The World Weather Inc., in its report has cited EL NINO effect that could lower monsson in India and China region and lower grain production. There is still time for monsoon to revive over India, but some time has surely been lost.
Corn prices on CBOT were down more than 6% on an average, due to concerns on economic stability and reports that ending stocks for 2008/09 will be higher and that demand may not be as high as anticipated. July contract was down 6.13% at $157.15 per MT; Sept down 6.25% at $160.3 per MT; Dec down 5.36% at $166.76 per MT.
FOB values of corn US Gulf and PNW have falled as the CBOt prices have come down. FOB (US gulf) prices are indicated at $178-183 per MT, while fOB (PNW) are indicated at $196/200 per MT.
Freights cost from Gulf - japan have gone up by about $6 per MT to $62, while for PNW-Japan are stable at $35 per MT. Freight costs from Argentina/Brazil to China have also moved up by $4 this week to $52/53 per MT. Sorghum is indicated at $175/178 per MT for US Gulf.
DDGS prices for SEA region are down by $5 per MT to reach $245 per MT, FOB values (US Guf) are also reported to be lower at $186 per MT. The demand for DDGS in some countries is substantially higher as the SBM prices are higher and DDGS has proven to be a good, consistent product for protein.
Corn Gluten Meal prices have been rising and current FOB gulf prices are at $770 per MT. This might also be the reason for Indian CGM prices to move up the circuit.
If monsoon is delayed any longer and if EL NINO takes effect, productivity of all crops this Khariff season may be an issue.
Amit Sachdev
India represenative
U S Grains Council
usgcindia@gmail.com
Maize prices were stable at the market yard at Rs.8690 per MT, but prices were higher than last year by 4.6%. In the futures market (NCDEX), prices moved lower by 3-4%. July Rs.9420 per MT, lower by 4.2%; Aug Rs.9710 per MT, lower by 2.9%; Sept 9630 per MT, lower by 3.2%. Oct prices were Rs.9655 per MT. In the SPOT market though prices moved up for Nizamabad at Rs.8927 per MT, up 1.65%; Davangere Rs.8852 per MT, up 2.4%. It was only in Karimnagar prices moved lower by 0.5% to Rs.8979 per MT.
Pearl Millet (Bajra) prices moved up by 2% to Rs.8650 per MT on an average and were 17% higher than last year. Prices are similat to maize prices.
Sorghum prices corrected at Rs.10400 per MT, down 13.4% this week, are are also lower than last year prices by 1.5%. Prices are higher than maize by 16.5%.
Barley prices were down by 2.1% to Rs.7800-7850 per MT range. Prices were lower than last year by 46.4%. In the futues as well as the spot market (Jaipur), prices were lower than by 2-3.5%. Jul Rs.9000 per Mt, down 2.8%; Sep Rs.9170 per MT, down 3.35%; Oct Rs.9712 per MT. Jaipur spot prices Rs.8436 per MT, down 1.8%.
Delayed monsoon is a cause of worry in India. Sowing of major crops, inclusing rice, cotton, oilseeds (soybean), maize etc is lagging behind except in Karnataka. Rainfall this week has been reported 51% below normal and for the period Jun 1 - 17, it is 45% below normal. The World Weather Inc., in its report has cited EL NINO effect that could lower monsson in India and China region and lower grain production. There is still time for monsoon to revive over India, but some time has surely been lost.
Corn prices on CBOT were down more than 6% on an average, due to concerns on economic stability and reports that ending stocks for 2008/09 will be higher and that demand may not be as high as anticipated. July contract was down 6.13% at $157.15 per MT; Sept down 6.25% at $160.3 per MT; Dec down 5.36% at $166.76 per MT.
FOB values of corn US Gulf and PNW have falled as the CBOt prices have come down. FOB (US gulf) prices are indicated at $178-183 per MT, while fOB (PNW) are indicated at $196/200 per MT.
Freights cost from Gulf - japan have gone up by about $6 per MT to $62, while for PNW-Japan are stable at $35 per MT. Freight costs from Argentina/Brazil to China have also moved up by $4 this week to $52/53 per MT. Sorghum is indicated at $175/178 per MT for US Gulf.
DDGS prices for SEA region are down by $5 per MT to reach $245 per MT, FOB values (US Guf) are also reported to be lower at $186 per MT. The demand for DDGS in some countries is substantially higher as the SBM prices are higher and DDGS has proven to be a good, consistent product for protein.
Corn Gluten Meal prices have been rising and current FOB gulf prices are at $770 per MT. This might also be the reason for Indian CGM prices to move up the circuit.
If monsoon is delayed any longer and if EL NINO takes effect, productivity of all crops this Khariff season may be an issue.
Amit Sachdev
India represenative
U S Grains Council
usgcindia@gmail.com
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