Commodity prices move up
This was a festival week, with most people getting ready to celebrate Deepawali, the Festival of Lights at the end of the week. Hopes that Indian economy is back on the path of recovery, Industrial production has revived, malls, markets were full of people buying gifts for themselves and friends. The stock market moved up and so did the commodity prices.
Maize prices have been more or less stable at the market yard on pan India average at about Rs.9000 per MT. GOI has not taken out any estimates as yet for the Khariff 2009/10 crop. Prices are higher than last year by 10.2%. In the states, except Gujarat where prices have moved up this week by 1.6% to Rs.9580 per MT at the market yard, prices is all states have shown a downward trend. Andhra Pradesh, down by 2.6% to Rs.8400 per MR; Rajasthan down 3.1% to Rs.9220 per MT; Uttar Pradesh down 2.1% to Rs.9270 per MT; Karnataka down 4.8% to Rs.8430 per MT. Prices in Maharashtra were close to Rs.9060 per MT,w hile in Tamil nadu were stable at Rs.8400 per MT.
On NCDEX the moved up for Oct contract by 1.7% to Rs.9160 per MT and 4 other new contracts also started with Nov Rs.9160 per MT; Dec Rs9280 per MT; jan 9370 per MT and FEb Rs.9570 per MT. The higher prices are indication enough that prices are likely to remain firm or move higher. In the spot markets as well the prices showed an upward trend by the end of this week. While prices in Nizamabad were stable at Rs.9066 per MT, prices in Karimnagar were up 0.5% to Rs.8848 per MT and Davangere up 0.3% to Rs.8727 per Mt. Trade reports indicate that some volumes of maize have been contracted for supplies to North India (Delhi and around) for Rs.10200 - 10700 per MT (Rake delivery).
Pearl Millet (Bajra) prices moved up by about 1.5% this week to Rs.9600 per MT. Prices are higher than last year by 25.3% and higher than maize by 6.3%. In most of the areas of Haryana, parts of Rajasthan the crop has been harvested or is being harvested and left in the fields to dry. In some cases the grains has already reached the market.
Sorghum (Jowar) prices have moved up by 17.4% by the end of this week. Prices were higher than last year by 26.6% and 29.3% higher than maize. There is speculation that Sorghum crop has been damaged in Maharashtra and part of karnataka and this is going to lead to severe shortage for those who grow Sorghum for their own subsistence. While teh grain is used as food, the dry plant is fodder for the animals.
Barley prices moved lower than last week by 3.2% to Rs.7700 per MT. Prices are lower than last year by 27%. The rabi sowing will start in areas of Rajasthan and Haryana soon after dewali (festival of lights).
On NCDEX while prices for the close month Oct were down by 0.8% to RS.8420 per MT, Dec contract was up by 1% to Rs.8890 per Mt and Apr up by 2.4% to Rs.9320 per MT. In teh spot market at jaipur, prices remained stable at Rs.8260 per MT.
On CBOT for the three most close contracts Dec 2009, Mar 2010 and May 2010 the prices moved up by 2.4 - 3.2% as harvest is delayed and some freezing in corn belt has been reported. Dec corn closed at $146.84 per MT, up 3.15%; Mar up 2.4% to $151.17 per MT and May up 2.46% to $154.48%.
FOB prices for Gulf and PNW were also reported to be higher at $177/178 and $201/202 per Mt respectively for the period Oct-Feb. Sorghum prices FOB US Gulf were reported to be close to corn at $179/180 per MT.
DDGS FOB values (US Gulf) were reported at $148/149 per MT and CNF prices for the SEA region were close to $216/220 per MT. China is a major buyer of DDGS and so are other nations. Poultry and dairy farmers are finding it a cheaper source of protein and energy. As the harvest in US is also delayed, cattle, poultry and swine farmers are also using more of DDGS, thus increasing the demand locally. The prices in midwest, where most of the US corn is grown and ethanol plants are there, DDGS is priced at $120 per MT ($110 per short ton - 910 kgs), FOB Plant basis.
Reports indicate that Argentina may not be exporting more corn this year. The first of the export licenses for 400 TMT was issued recently. Brazil on the other side is exporting more corn and the Government may issue more licenses for another 500 TMT. Current prices were close to $174 per MT (FOB).
The freight rates moved up slightly this week with US Gulf - Japan up to $59 per MT, PNW - Japan up to $33.50 per MT and Argentina-Brazil to China up to $43/44 per MT.
This was a festival week, with most people getting ready to celebrate Deepawali, the Festival of Lights at the end of the week. Hopes that Indian economy is back on the path of recovery, Industrial production has revived, malls, markets were full of people buying gifts for themselves and friends. The stock market moved up and so did the commodity prices.
Wishing every one a happy and a prosperous Deepawali.
May the festive lights sparkle your life with loads of love, laughter, luck, happiness, prosperity and wisdom to take on the world with new energy.
May the festive lights sparkle your life with loads of love, laughter, luck, happiness, prosperity and wisdom to take on the world with new energy.
Maize prices have been more or less stable at the market yard on pan India average at about Rs.9000 per MT. GOI has not taken out any estimates as yet for the Khariff 2009/10 crop. Prices are higher than last year by 10.2%. In the states, except Gujarat where prices have moved up this week by 1.6% to Rs.9580 per MT at the market yard, prices is all states have shown a downward trend. Andhra Pradesh, down by 2.6% to Rs.8400 per MR; Rajasthan down 3.1% to Rs.9220 per MT; Uttar Pradesh down 2.1% to Rs.9270 per MT; Karnataka down 4.8% to Rs.8430 per MT. Prices in Maharashtra were close to Rs.9060 per MT,w hile in Tamil nadu were stable at Rs.8400 per MT.
On NCDEX the moved up for Oct contract by 1.7% to Rs.9160 per MT and 4 other new contracts also started with Nov Rs.9160 per MT; Dec Rs9280 per MT; jan 9370 per MT and FEb Rs.9570 per MT. The higher prices are indication enough that prices are likely to remain firm or move higher. In the spot markets as well the prices showed an upward trend by the end of this week. While prices in Nizamabad were stable at Rs.9066 per MT, prices in Karimnagar were up 0.5% to Rs.8848 per MT and Davangere up 0.3% to Rs.8727 per Mt. Trade reports indicate that some volumes of maize have been contracted for supplies to North India (Delhi and around) for Rs.10200 - 10700 per MT (Rake delivery).
Pearl Millet (Bajra) prices moved up by about 1.5% this week to Rs.9600 per MT. Prices are higher than last year by 25.3% and higher than maize by 6.3%. In most of the areas of Haryana, parts of Rajasthan the crop has been harvested or is being harvested and left in the fields to dry. In some cases the grains has already reached the market.
Sorghum (Jowar) prices have moved up by 17.4% by the end of this week. Prices were higher than last year by 26.6% and 29.3% higher than maize. There is speculation that Sorghum crop has been damaged in Maharashtra and part of karnataka and this is going to lead to severe shortage for those who grow Sorghum for their own subsistence. While teh grain is used as food, the dry plant is fodder for the animals.
Barley prices moved lower than last week by 3.2% to Rs.7700 per MT. Prices are lower than last year by 27%. The rabi sowing will start in areas of Rajasthan and Haryana soon after dewali (festival of lights).
On NCDEX while prices for the close month Oct were down by 0.8% to RS.8420 per MT, Dec contract was up by 1% to Rs.8890 per Mt and Apr up by 2.4% to Rs.9320 per MT. In teh spot market at jaipur, prices remained stable at Rs.8260 per MT.
On CBOT for the three most close contracts Dec 2009, Mar 2010 and May 2010 the prices moved up by 2.4 - 3.2% as harvest is delayed and some freezing in corn belt has been reported. Dec corn closed at $146.84 per MT, up 3.15%; Mar up 2.4% to $151.17 per MT and May up 2.46% to $154.48%.
FOB prices for Gulf and PNW were also reported to be higher at $177/178 and $201/202 per Mt respectively for the period Oct-Feb. Sorghum prices FOB US Gulf were reported to be close to corn at $179/180 per MT.
DDGS FOB values (US Gulf) were reported at $148/149 per MT and CNF prices for the SEA region were close to $216/220 per MT. China is a major buyer of DDGS and so are other nations. Poultry and dairy farmers are finding it a cheaper source of protein and energy. As the harvest in US is also delayed, cattle, poultry and swine farmers are also using more of DDGS, thus increasing the demand locally. The prices in midwest, where most of the US corn is grown and ethanol plants are there, DDGS is priced at $120 per MT ($110 per short ton - 910 kgs), FOB Plant basis.
Reports indicate that Argentina may not be exporting more corn this year. The first of the export licenses for 400 TMT was issued recently. Brazil on the other side is exporting more corn and the Government may issue more licenses for another 500 TMT. Current prices were close to $174 per MT (FOB).
The freight rates moved up slightly this week with US Gulf - Japan up to $59 per MT, PNW - Japan up to $33.50 per MT and Argentina-Brazil to China up to $43/44 per MT.
Amit Sachdev
India Representative
U S Grains Council
E Mail: usgcindia@gmail.com
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