Commodity prices move up, monsoon is still deficient
Maize prices moved up at the market yard by almost 4.2% this week to reach Rs.9100 per MT. The prices are about 6.9% higher than last year. Uneven distribution on monsoon rains, near drought like conditions in North India are reasons enough to set the tone for high prices. The buyers may be covered for some the months ahead, increasing prices are indication enough that the supplies will be tight in near future as the marketing season comes to an end.
In the futures market as well and the spot markets, maize prices moved up as the supplies dry and the monsoon plays truant. It was only for July delivery that the prices were lower by about 0.4% against last week to Rs.9230 per MT, but were higher for Aug +073% to Rs.9620 per MT; Sept +1.05% to Rs.9500 per MT; Oct +2.19% to Rs.8850 per MT. In the Spot market to except Davanagere, prices moved up. Davangere -1.15% to Rs.8470 per MT; Nizamabad +2.4% to Rs.9243 per MT; Karimnagar +2.73% to Rs.8977 per MT.
Pearl Millet (Bajra) prices also moved higher at the market yard by 1.9% to Rs.8900 per MT, just about 2.2% lower than maize prices. Pearl Millet prices are higher than last year by 18.6%. Reports indicate that farmers in Rajasthan and parts of Haryana who would have grown corn have planted Pearl Millet. And if the monsoon is subdued, as it is for the period Jun 1- Jul 15, 2009, farmers may need to feed the bajra as fodder to livestock. Pearl Millet is a staple food for many people in Rajasthan and Haryana, who grow the bold variety of the commodity.
Sorghum (Jowar) prices also moved up by 6.1% to reach 12595 per MT at the market yard. Prices are about 14.1% higher than last year and 27.7% higher than maize. Sorghum is a coarse grain and a staple in Maharashtra, Parts of Karnataka.
Barley prices moved lower by about 12.6% to reach Rs.7700 per MT the market yard. This is a correction and the prices are same as first week of July 2009. Prices are lower than last year by 43.3%.
In the future market as well as spot market of Jaipur though, prices moved up. Jul +0.87% to Rs.8740 per MT; Sept +1.77% to Rs.9150 per MT; Oct +3.60% to Rs.9376 per MT; Jaipur spot +1.94 to Rs.8544 per MT.
On CBOT, corn prices moved down slightly for Sept and dec contracts by about 2-2.5% to $126 - $130 per MT. FOB US GULF remained same as last week at $159 per MT for the period July/Oct. FOB PNW was also stable at $168/170 per MT. Sorghum prices on the other hand moved up slightly to $512 per MT FOB PNW.
There is steady demand of DDGS in the Asian markets as the prices move lower. Domestic poultry sector continues to be a buyer of DDGS and replaces high prices Soybean meal. FOB prices US gulf are indicated at $138 per MT, while delivered values are indicated at $192 per MT for Malaysia and $198 per MT for Thailand.
Freight rates for panamax (US Gulf – Japan) moved up by $5 per MT this week to reach $60 per MT, while Freight rates for PNW-Japan remained same at $31 per MT. Freight rates for China from Argentina and Brazil moved up slightly to $44/45 per MT.
Maize prices moved up at the market yard by almost 4.2% this week to reach Rs.9100 per MT. The prices are about 6.9% higher than last year. Uneven distribution on monsoon rains, near drought like conditions in North India are reasons enough to set the tone for high prices. The buyers may be covered for some the months ahead, increasing prices are indication enough that the supplies will be tight in near future as the marketing season comes to an end.
In the futures market as well and the spot markets, maize prices moved up as the supplies dry and the monsoon plays truant. It was only for July delivery that the prices were lower by about 0.4% against last week to Rs.9230 per MT, but were higher for Aug +073% to Rs.9620 per MT; Sept +1.05% to Rs.9500 per MT; Oct +2.19% to Rs.8850 per MT. In the Spot market to except Davanagere, prices moved up. Davangere -1.15% to Rs.8470 per MT; Nizamabad +2.4% to Rs.9243 per MT; Karimnagar +2.73% to Rs.8977 per MT.
Pearl Millet (Bajra) prices also moved higher at the market yard by 1.9% to Rs.8900 per MT, just about 2.2% lower than maize prices. Pearl Millet prices are higher than last year by 18.6%. Reports indicate that farmers in Rajasthan and parts of Haryana who would have grown corn have planted Pearl Millet. And if the monsoon is subdued, as it is for the period Jun 1- Jul 15, 2009, farmers may need to feed the bajra as fodder to livestock. Pearl Millet is a staple food for many people in Rajasthan and Haryana, who grow the bold variety of the commodity.
Sorghum (Jowar) prices also moved up by 6.1% to reach 12595 per MT at the market yard. Prices are about 14.1% higher than last year and 27.7% higher than maize. Sorghum is a coarse grain and a staple in Maharashtra, Parts of Karnataka.
Barley prices moved lower by about 12.6% to reach Rs.7700 per MT the market yard. This is a correction and the prices are same as first week of July 2009. Prices are lower than last year by 43.3%.
In the future market as well as spot market of Jaipur though, prices moved up. Jul +0.87% to Rs.8740 per MT; Sept +1.77% to Rs.9150 per MT; Oct +3.60% to Rs.9376 per MT; Jaipur spot +1.94 to Rs.8544 per MT.
On CBOT, corn prices moved down slightly for Sept and dec contracts by about 2-2.5% to $126 - $130 per MT. FOB US GULF remained same as last week at $159 per MT for the period July/Oct. FOB PNW was also stable at $168/170 per MT. Sorghum prices on the other hand moved up slightly to $512 per MT FOB PNW.
There is steady demand of DDGS in the Asian markets as the prices move lower. Domestic poultry sector continues to be a buyer of DDGS and replaces high prices Soybean meal. FOB prices US gulf are indicated at $138 per MT, while delivered values are indicated at $192 per MT for Malaysia and $198 per MT for Thailand.
Freight rates for panamax (US Gulf – Japan) moved up by $5 per MT this week to reach $60 per MT, while Freight rates for PNW-Japan remained same at $31 per MT. Freight rates for China from Argentina and Brazil moved up slightly to $44/45 per MT.
Amit Sachdev
India Representative
U S Grains Council
usgcindia@gmail.com
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