Coarse cereal prices remain strong
Average maize prices remained stable at the market at Rs.9300 per MT. Prices are up against last year by 13.2 percent. Average prices in Andhra Pradesh and Uttar Pradesh were up by 1.5% and 5% respectively, while price in Gujarat, Rajasthan and Tamil Nadu were down by 2%, 5% and 1.6% respectively.
The prices are moving down in some areas due to production/delivery pressure, which may be short lived.
On the futures market (NCDEX), prices were lower than last week, Nov down 3.4% to Rs.9525; Dec down 1.86% to Rs.9980; Jan down 3% to Rs.10235 and Feb down 3.5% to 10450. Mar contract closed at 10,800 per MT. In the spot market though prices in Karimnagar were up by 0.83% to Rs.8914 and Davangere up by 3.87% to Rs.9158 per MT. In Nizamabad, prices remained stable at Rs.9274 per MT.
On MCX which has two ongoing contracts, prices were stable at Rs.9950 per MT for Nov, while for Dec contract prices moved up by 0.74% to Rs.10210 per MT.
Pearl Millet prices have moved up by 1.6% to Rs.10550 per MT,. Price are higher than last year by 25.7%. Against maize, the prices are higher by 12.5%.
Sorghum prices were down by 13.4% to Rs..11450 per MT at the market yard, but were 20.6% higher than last year. Against maize, prices are higher by 19.2%. Arrivals in major markets of Maharashtra could be one reason for the prices to turn soft.
Barley prices moved lower this week by 4.7% for Dec contract to Rs.10074 per MT, also for April the prices moved down by 4.2% to Rs.10550 per MT. May contract closed at 10690 per MT. In the spot market (Jaipur) prices were down by 3.65% to Rs.9442 per MT.
On CBOT corn prices moved up by +6% for the three contracts. Dec up 6.3% to $153.69 per Mt; Mar up 6.68% to $159.69 per MT; May up 6.56% t0 $163.61 per MT. One of the reasons being attributed to increase in futures is the marginal decrease in production numbers given by USDA last week and also a slow harvest due to rains in US. (Only 37% of the corn crop has been indicated as harvested by Nov 8). With CBOT higher, FOB rates are also indicated to be up. US Gulf was indicated at $$184/191 per MT, while PNW was indicated at $202/212 for Nov - Feb window.
The freight rates for Gulf-PNW remained stable at $70 per MT, but PNW-Japan rates were up to $43 per MT. Argentina/Brazil to China was indicated at $53-55 per MT.
The new USDA report put the production of corn at 328.21 MMT, slightly lower than Oct report. Increased demand ans slightly lower production is the reason behind increased price indication of $127 - 151 per MT for the 2009/10 crop in US. Report also indicates that the world production is likely to be down to 789.73 MMT against Oct projection of 792.54 MMT.
Reports from china indicated a crop production of close to 144 MMT, about 10 MMT lower than the USDA estimate. China has a end stock of over 48 MMT and with the low production would China release additional stocks in the market to ease the supply situation.
Amit Sachdev
India Representative
U S Grains Council
email: usgcindia@gmail.cm
Average maize prices remained stable at the market at Rs.9300 per MT. Prices are up against last year by 13.2 percent. Average prices in Andhra Pradesh and Uttar Pradesh were up by 1.5% and 5% respectively, while price in Gujarat, Rajasthan and Tamil Nadu were down by 2%, 5% and 1.6% respectively.
The prices are moving down in some areas due to production/delivery pressure, which may be short lived.
On the futures market (NCDEX), prices were lower than last week, Nov down 3.4% to Rs.9525; Dec down 1.86% to Rs.9980; Jan down 3% to Rs.10235 and Feb down 3.5% to 10450. Mar contract closed at 10,800 per MT. In the spot market though prices in Karimnagar were up by 0.83% to Rs.8914 and Davangere up by 3.87% to Rs.9158 per MT. In Nizamabad, prices remained stable at Rs.9274 per MT.
On MCX which has two ongoing contracts, prices were stable at Rs.9950 per MT for Nov, while for Dec contract prices moved up by 0.74% to Rs.10210 per MT.
Pearl Millet prices have moved up by 1.6% to Rs.10550 per MT,. Price are higher than last year by 25.7%. Against maize, the prices are higher by 12.5%.
Sorghum prices were down by 13.4% to Rs..11450 per MT at the market yard, but were 20.6% higher than last year. Against maize, prices are higher by 19.2%. Arrivals in major markets of Maharashtra could be one reason for the prices to turn soft.
Barley prices moved lower this week by 4.7% for Dec contract to Rs.10074 per MT, also for April the prices moved down by 4.2% to Rs.10550 per MT. May contract closed at 10690 per MT. In the spot market (Jaipur) prices were down by 3.65% to Rs.9442 per MT.
On CBOT corn prices moved up by +6% for the three contracts. Dec up 6.3% to $153.69 per Mt; Mar up 6.68% to $159.69 per MT; May up 6.56% t0 $163.61 per MT. One of the reasons being attributed to increase in futures is the marginal decrease in production numbers given by USDA last week and also a slow harvest due to rains in US. (Only 37% of the corn crop has been indicated as harvested by Nov 8). With CBOT higher, FOB rates are also indicated to be up. US Gulf was indicated at $$184/191 per MT, while PNW was indicated at $202/212 for Nov - Feb window.
The freight rates for Gulf-PNW remained stable at $70 per MT, but PNW-Japan rates were up to $43 per MT. Argentina/Brazil to China was indicated at $53-55 per MT.
The new USDA report put the production of corn at 328.21 MMT, slightly lower than Oct report. Increased demand ans slightly lower production is the reason behind increased price indication of $127 - 151 per MT for the 2009/10 crop in US. Report also indicates that the world production is likely to be down to 789.73 MMT against Oct projection of 792.54 MMT.
Reports from china indicated a crop production of close to 144 MMT, about 10 MMT lower than the USDA estimate. China has a end stock of over 48 MMT and with the low production would China release additional stocks in the market to ease the supply situation.
Amit Sachdev
India Representative
U S Grains Council
email: usgcindia@gmail.cm
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