Prices stable for maize, but higher that last year, coarse cereals prices made a dent; DDGS a major livestock feed ingredient
Maize prices moved up by 2.8% on the average at the market yard for pan India to Rs.9580 per MT. The prices are 15% higher than last year at this point. Prices remained stable in Maharashra and Karnataka from where stocks are moving to other parts of the country. Prices in Andhra were slightly lower by 0.6% to Rs.8550 per MT, while in all other states average prices moved up. Gujarat up by 2% to Rs.10140 per MT; Rajasthan up by 1.3% to 9950 per MT; Tamil nadu up by 0.76% to Rs. 8650 per MT and Uttar Pradesh up by 5.5% to Rs.10233 per MT. While the overall availability may be good, an average sample of maize contains more of small grains as per market reports.
Demand from starch units is good and with Government of Maharashtra clearing maize, Sorghum and pearl millet), the demand is likely to rise further within one year one would be able to see use of 0.5 – 0.7 MMT of grains used in the sector. Already plants in Andhra Pradesh and Karnataka are using maize to produce alcohol. While NGO’s have opposed the move, as coarse cereals are staple for the resource poor farmers and the diversion will increase the price, which many experts believe is good for the farmers.
On NCDEX the prices are lower than last week by 1.5 - 1.7%, probably as more stocks are in the market and Rabi sowing is a little better. Jan contract was Rs.9930 per Mt, down 1.68%; Feb down 1.54% to Rs.10190; Mar down 1.51% to Rs.10410 per Mt. Only April contract was up marginally by 0.14% to Rs.10710 per MT. In the spot markets as well, prices were down slightly, Nizamabad down 1.1% to Rs.9472 per MT; Karimnagar down 1.47% to Rs.9222 per Mt. Prices in Davangere were up by 0.12% to Rs.9362 per MT.
Pearl Millet prices remained stable at RS.9900 per MT and were higher than last year by 23.3%. Against maize, prices are higher by 3.2%.
Sorghum prices also have moved up by 3.4% to Rs.13,200 per MT and are higher than last year by 32%. Prices are higher than maize by 27.4%.
Barley prices at the market yard moved lower by 6.2% to Rs.8420 and were also down against last year by 7.5%. In the futures as well as the spot market, prices moved lower. April down 0.11% to 10208 per MT; May down 0.61% to 10398 per Mt. Jaipur down 0.43% to Rs.9409 per MT.
As on Dec 11, 2009, while overall wheat crop was sown in more area in 2009 (21.728 mill hac) than in 2008 (21.602 mill hac), repots were that the sowing was up in Madhya Pradesh and down in other key states of Punjab, Haryana, Uttar Pradesh, Maharashtra and Gujarat. Barley area is reported to be up to 0.623 mill hac in 2009 from 0.58 mill hac, an increase of 7.4%. Area under sorghum is reported to be down to 4.347 mill hac in 2009, against 4.791 mill hac in 2008, loss of 9.2%. Maize/Corn area is up slightly (3.4%) to 0.73 mill hac in 2009 against 0.706 mill hac in 2008. Area under all oilseeds in projected to be down by 7.19% to 7.7 mill hac in 2009. Area under pulses/lentils is expected to be up 2.3% to 11.19 mill hac in 2009 against 10.93 mill hac in 2008.
For the week ended Dec 5, 2009, the food inflation has hit a 11 year high of 19.95%, mostly due to lower production of food crops and higher demand. GOI has assured that in case there is a requirement, imports would be stepped up for all food products.
On CBOT, corn prices settled lower for the near contract May 2010, down 1.68% to $156.82 per Mt. For May 10 as well prices were down by 1.68% to $160.77 per Mt. July contract closed at $164.32 per MT. Prices are down as the market is entering the holiday mode and next 10 days would be easy on the market. FOB gulf prices are indicated at $180 per MT for Feb to April and FOB PNW are indicated at $199-206 per MT for Jan – April 2010. Sorghum was indicated at $184-186 per MT for Jan – Mar 2010.
DDGS is finding more users domestically and also in other parts of the world. Livestock users have excepted DDGS as a product of choice in livestock, poultry, fish and swine rations all over the world. For the period Jan – Oct 2009, US has exported 4.56 MMT of DDGS, 17.34% higher than 2008 (same period). The countries parts from Americas which, are bigger buyers include China 336 TMT; Thailand 261 TMT; Vietnam 200 TMT; Malaysia 30 TMT. Countries like Turkey and Egypt have been consistently importing the product for use in all livestock rations. The current price FOB Gulf is indicated at $171 for Jan/Feb and $163 for Mar. Current CNF values for SEA region are close to $235-246 depending on the destination. The other protein meal (corn gluten) is trading at $670 per MT (FOB US Gulf).
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