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Amit Sachdev
India Representative
U S Grains Council
E mail: usgcindia@gmail.com

Lower maize prices - lower feed bills for farmers; good monsoon could boost grain production and lower prices

Maize prices are down by about 2.1% this week to Rs.9070 per MT. Prices are higher than last year by 8.7%. A spike in the price was seen in the last week, which could be due to speculation on monsoon front and farmers holding stocks. As the arrivals increased, the prices have come down and GOI/IMD has also indicated a normal monsoon to 98%, which could have added to the decline in prices. Overall the prices in the state market yards moved lower. Andhra Pradesh down by 1.2% to Rs. 8587 per MT; Gujarat down 1% to Rs.9814 per MT; Karnataka stable at Rs.8200-8400 per MT range; Tamil Nadu down by 1.5% to Rs.8600 per MT; Maharashtra down by 0.5% to Rs.8700 per MT; Uttar Pradesh down by 0.25% to Rs.9650 per MT. It was only in Rajasthan that the prices moved up by 0.87% to Rs.9608 per MT.

In the future as well as the spot market, maize prices declined. May down 1.41% to Rs.8895 per MT; June down 1.36% to Rs.9055 per MT; July down by 0.96% to Rs.9270 per MT and Aug down by 1.77% to Rs.9430 per MT. In the spot markets, Nizamabad down by 0.5% to Rs.8893 per MT; Karimnagar down by 0.78% to Rs.9090 per MT and Davangere down by 1% to Rs.9113 per MT.

Pearl Millet (Bajra) prices down by 2.5% to Rs.9544 per MT, but have remained higher than last year by 5.6%. On an average pan India basis, pearl millet prices are higher than maize by 5%.  Prices in Uttar Pradesh were reported lowest at Rs.8200. Deliveres are good in almost al the major markets and specially in North India the dairy feed manufacturers are using about 10% Pearl Millet in their rations along with maize. 

Sorghum (Jowar) prices were down by 4.5% to Rs.11699 per MT, but were higher than last year by 16.3%. Against maize prices are higher by 22.5%. Deliveries were reported to be good in Maharashtra and have brought down the average price to Rs.10420 per MT.

Barley prices moved up by 4.9% to Rs.8881 per MT. Prices were higher than last year by 11.6%. Deliveries are slow which is keeping the prices somewhat higher. North India is reeling under intense heat and is likely to effect the production of grain in North India, specially wheat and other grains as there are areas that are still to be harvested.  

In the future as well at the spot market, prices have moved up. May up 3.9% to Rs.10730 per MT; Jun up 4.5% to Rs.10930 per MT; Jul up 4.94% to Rs.11040 per MT; Aug up 5.47% to Rs.11180 per MT and Sept up 4.53% to Rs.11300 per Mt. Prices in Jaipur were down by 4.23% to Rs.10173 per MT.

In the US, corn prices on CBOT declined this week. may down 2.22% to $138.96 per MT; July down 2.85% to $142.11 per MT and Sept down 3.04% to $145.42 per MT. The lower prices are due to traders going out of the market. Reports are that the cash market is firm and the farmers are not selling the stocks and are busy planting corn. As per a conservative estimate almost 50% planting could be complete in US my May 01, 2010. All this also suggests a good crop in 2010/11, which will pressure the prices.

The decrease in CBOT prices is reflected in a the FOB values as well, which are indicated at $163-166 per MT for US Gulf and $184-189 per MT for US PNW. 

There are also reports that China will be releasing 1.3 MMT of stocks in the open market to bring down the prices. China is becoming a large importer of DDGS from US, which is increasing the price of DDGS in US. In addition ethanol plants under maintenance is adding to the price increase. DDGS FOB values are indicated at $171 for Apr, $165 for May and $160  for Jun. CNF SEA are indicated at $254-260 per MT while CNF China is indicated at $247-253 per MT.

Bulk freights are lower than containers freights at this time, which in times to come will also put pressure on the containers, which may decline to come to level at the bulk freight rates.

Amit Sachdev

India Representative

U S Grains Council

E mail: usgcindia@gmail.com

Higher corn prices in future and spot markets, Corn prices move up in US

Maize prices moved up on the market yard by 4.5% to Rs.9265 per MT. Prices are higher than last year by 9.2%.  Farmers in Uttar Pradesh are paying Rs.11000 per MT for corn, delivered to farm. Prices in Andhra Pradesh have moved up by 3% to Rs.8695 per MT; Maharashtra by 1% to Rs.8743 per MT; and Rajasthan by 1% to Rs.9525 per MT and Uttar Pradesh by 0.78% to Rs.9675 per MT. Prices have slid lower in Tamil nadu by 2.5% to Rs.8725 per MT and have remained stable in Gujarat at Rs.9900 per MT .

In the futures market the prices moved up for the near months, Apr up 1.59% to Rs.8930 per MT; May up 1.29% to Rs.9025 per MT; Jun up 0.45% to Rs.9180 per MT and also for Aug up 0.15% to Rs.9600 per MT. Price for Jun contract was down by 0.1% to Rs.9360 per Mt. In the spot markets as well prices have moved up. Nizamabad up 2.65% to Rs.8944 per MT; Karimnagar up 0.37% to Rs.9162 per MT and Davangere up 1.78% to Rs.9200 per MT.

Pearl Millet (Bajra) prices have come down by 6.6% at the market yard to Rs.9787 per MT and are higher than last year by 7%. Prices are higher than maize by 5.3%.

Sorghum (Jowar) prices remained stable at Rs.12250 per MT at market yards. Prices are higher than last year by 23.8% and also higher than maize by 24.4%. White sorghum for food purpose is being traded at the market yard at Rs.17000 per MT.

Barley prices a moved up by 4.5% to Rs.8460 per MT. Prices are higher than last year by 4.8%. Prices in Gujarat averaged Rs.9130 per MT, while in Rajasthan were Rs.8110 per MT. Barley prices have also moved higher this week in the futures market. Apr up 5.5% to Rs.10140 per MT; May up 5.66% to RS.10328 per MT; Jun up 5.33% to Rs.10460 per MT; Jul up 5.09% to Rs.10520 per MT and Aug up 4.74% to Rs.10600 per MT. Prices in Jaipur spot market wereup by 6.08% to Rs.9760 per MT.

Intense heat is taking toll on the crops. It is exceptionally dry is north India and all over the plains. Temperatures are almost 6-8 deg C above normal. There are areas in Haryana and Punjab, where harvest of wheat has not been done and farmers/experts fear that the grain will be shriveled and the production will be effected. It is still debatable that such intense heat will be good and lead to early rains

On CBOT, corn prices have moved up, Apr up 3.55% to $142.11 per Mt; May up 3.16% to $146.29 per MT; Sept up 2.85% to $149.99 per MT. The increase in prices is reflected in the FOB values on Gulf and PNW basis, where prices are indicated at $166-170 per MT and $187-193 per MT respectively for the period April – June 2010. Sorghum prices on FOB Gulf basis moved up to $175 per MT.

DDGS prices have moved up due to increased demand from China. On FOB Gulf basis, prices for Apr moved up to $183 per MT, while for May at $166 ($10 higher than last week) and for June prices were indicated at $158 per MT ($12) higher than last week. On CNF basis the prices have moved up to $255-260 per for Vietnam and $251-256 for China. The freight market is stable, but last week also saw up and down. Chinese economy numbers (growth at 11%) could further increase the demand and thus the prices.   

Amit Sachdev

India Representative

U S Grains Council

E Mail: usgcindia@gmail.com

Lower maize prices can keep a check on inflation; Milk is a superior food, but not a luxury food

Lower maize prices can keep a check on inflation

Maize prices dropped by 2.1% to Rs.8864 per MT at the market yard on average. The prices is for the loose material brought by the farmers to the market yard. The prices were higher than last year by 6.2%. Stocks arrivals in the market are keeping a check on the prices. The average prices in some states however were reported up, Andhra Pradesh up by 0.45% to Rs.8441 per MT; Gujarat up 7.2% to Rs.9916 per MT; Karnataka up 1.38%, Tamil Nadu up 1.68% to Rs.8950 per MT. However prices were reported lower in Rajasthan 3.77% to Rs.9430 per Mt and Uttar Pradesh 3.35% to Rs.9600 per MT.

In the futures market (NCDEX), the prices for Apr delivery remained stable as last week at Rs.8490 per MT, while for May and June the prices dropped to Rs.8910 and Rs.9135 per MT, down by 0.44% and 0.60% respectively. However the prices for July delivery were higher by 0.42% to Rs.9370 per MT. In the spot market the prices moved higher. Nizamabad up by 2.6% to Rs.8713 per MT, Karimnagar up by 5.6% to Rs.9128 per MT and Davangere up by 0.2% to Rs.9039 per MT.

Pearl Millet prices moved up by 11.9% to Rs.10476 per MT, remained higher than last year by 15.9% and also higher than maize by 15.4%. 

Sorghum prices moved up by 2.8% to Rs.12250 per MT, higher than last year by 23.5% and higher than maize by 27.7%. 

Barley prices moved down by 1.6% to Rs.8102 per MT, but were higher than last year by 1.6%. In the futures market as well prices have fallen as new stocks have started to arrive. Apr down 4.18% to Rs.9610 per MT; May down 4.5% to Rs.9774 per MT; Jun down 4.18% to Rs.9930 per MT and Jul down 1.96%to Rs.10010 per MT. The the Spot market (Jaipur) however the prices were reported yp be higher than last week by 1.16% to Rs.9220 per MT.

On CBOT there is no major change in the prices, which were report at 1.04% higher for May at $137.23 per MT, 1.18% for Jul at $141.80 per MT and 1.32% higher for Sept contract at $145.82 per MT. The FOB values for Gulf and PNW have remained stable at $157-163 per MT and %179-184 per Mt for the period Apr - Jul. Sorghum price on FOB basis (Gulf) has remained stable at $167-168 per MT for the same period.

The DDGS have suddenly spiked due to increased demand from China and other Asian destination have followed China and increased purchases. FOB Gulf value of DDGS is $166 for Apr; $156 for May and $146 for Jun. CNF value for SEA region (vietnam) is indicated at $249-254 per MT and for China at $245-250 per MT for the same period. The price of DDGS, relative to corn is lower in Southern China and this has lead to increased buying. As container prices are higher, bulk shipments have also increased and hence increased buying.

There are reports that Chinese government will release corn in the open market, which will help stem  the increase in corn price in China, but the demand of DDGS is expected to remain strong in coming years. In addition US is expected to produce more DDGS when the E 15 (15% ethanol blend) is made mandatory in the US. 

As the Argentine dock workers strike has come to an end and South American exports surge, the freight rates have moved up. Gulf-Japan benchmark was up $3 per Mt to $70 per MT, while PNW-Japan benchmark was up $2 to $42 per MT. Argentina/Brazil - China freight rates were reported higher at $74-76 per MT.

Milk is a superior food, but not a luxury food

The recent National Sample Survey Organization (NSSO) data reveals that Indian's consume more milk and almost 15% of the monthly income on milk and milk products. And the spend increases with the increase in income. In rural India, almost 14.9% income is spent on milk and 18.3% in Urban India and in both cases it is second to cereals, which for the basic diet of Indian families.

As the demand has increased and supplies affected due to increased summer (lower production), agencies have increased the procurement price (in tune with the increased cost of production), but at the same time have increased the sale price. Nandini milk from Karnataka Milk Federation increased the prices this week, Mother dairy and AMUL had increased the prices in National Capital Region (NCR) last week.

Amit Sachdev

India Representative

U S Grains Council

Email: usgcindia@gmail.com

    

Future prices drop in India and higher corn crop weighs on US prices

Maize prices moved up in the last week of the Mar 2010 at the market yard for higher quality product. The prices were up by 5.2% to Rs.9050 per MT, and there is likely to be correction to lower prices in short term as new stocks from Bihar start to reach the market. Prices remained higher than last year by 10.2%. The average price of maize for the month of Mar 2010 was Rs.9013 per MT, 8.44% higher than Mar 2009 and about 1% lower than Feb 2010 prices.

In the states, prices were reported lower in Gujarat by 2.63% to Rs.9250 per MT; Karnataka by 1$% to 8325 per MT and Rajasthan by 2.48% to Rs.9800 per MT. Prices were however reported up in Andhra Pradesh by 0.33% to 8403 per MT; Tamil Nadu by 2.70% to Rs.8802 per Mt and Uttar Pradesh by 1.8% to Rs.9933 per MT.

In the futures as well as the spot markets prices were lower than last week. Apr delivery down 0.11%to Rs.8790 per MT; May down 0.27% to Rs.8950 per MT; Jun down 0.4% to Rs.9190 per MT and Jul down 0.21% to Rs.9330 per MT. In the spot markets, prices were stable in Nizamabad at Rs.8491 per MT and down in Karimnagar by 0.13% to Rs.8688 per MT and Davangere by 0.2% to Rs.9020 per MT.

Pearl Millet (Bajra) prices moved up by 1.4% to Rs.9362 per MT against last week. Prices were higher than last year by 6.4% and also higher than maize by 3.3%. The average price for Pearl Millet for mar 2010 was Rs.9756 per MT, 13.5% higher than Mar 2009 price, but 0.03% lower than Feb 2010 price.

Sorghum (Jowar) prices also moved up by 6.1% to Rs.11916 per MT. Prices were higher than last year by 14.7% and higher than maize by 24.1%. The average price of Sorghum for Mar 2010 was Rs.11444 per MT, 19.33% higher than Mar 2009 and 1.63% higher than Feb 2010 price.

Barley prices at the market yard moved lower by 4.2% to Rs.8231 per MT and were reported at 3.2% lower than last year in the last week of Mar. The average price of market for Mar 2010 was Rs.8509 per MT, 2.12% higher than Mar 2009 and 9.15% lower than Feb 2010 price. In the futures as well as the spot market however the prices moved up. Apr delivery up by 7.98% to Rs.10030 per MT; may up 6.4%to Rs.10236 per MT; Jun up by 5.36% to Rs.10364 per MT; Jul up 1.79% to Rs.10210; Aug up 1.27% to Rs.10300 per MT and Sept up by 2.59% to Rs.10428 per MT. In the Jaipur market price was up by 1.11% to Rs.9094 per MT.

Corn prices in US were down substantially as the planting intentions 2010 report came out. On CBOT, corn prices for May delivery was down 3.25% to $135.81 per MT; Jul down 3.26% to $140.14 per MT and Sept down 2.90% to $143.92 per MT. FOB values were reflective in the drop in prices. US Gulf indicated at $158-163 per MT and PNW $181-187 per MT for the period Apr - Jul. Sorghum prices also were reported lower at $167 per MT for the same period and higher than corn.

DDGS prices were relatively stable on FOB basis and indicated at $152 per Mt for Apr; $146 for May and $144 for Jun delivery. CNF values for Vietnam were indicated at $242-247 per MT for May - Jun and to China $238-243 per MT. The DDGS production is somewhat lower as many ethanol plants are under maintenance and the margins on ethanol are lower.

The export demand is good, and end users in Asia are looking to move to bulk shipments as per reports as the container freight rates are much higher than bulk and the difference is as higher as $30 per MT, which makes a huge difference.

USDA’s released its 2010 Prospective Plantings report last week, based on farmer survey, which suggests that U.S. corn acreage for 2010 will be 88.8 million acres, up 3 percent from both 2009 and

2008. The report also suggests that US farmers will plant 3.3 million acres of barley, down 8% from 2009. The report also suggest lower land under Sorghum by 4% to 6.4 million acres. The area under corn may also go up if the prices of inputs and output remains stable.

Amit Sachdev

India Representative

U S Grains Council

Email: usgcindia@gmail.com

Mixed bag for prices in India, prices slump in US due to higher stocks

Mixed bag for prices in India, prices slump in US due to higher stocks

Maize prices in India slipped close to MSP levels at the market yard, down 4.7% to Rs.8600 per MT. Prices are close to last year’s level at this time of the year. Reasons attributed are slow exports, increased availability and Rabi arrivals., that have put pressure on the corn crop. Arrivals in Bihar have started and prices are close to Rs.9300 – 9500 per MT and are expected to go down in the next 15-20 days and the arrivals increase.  Prices in other states have also gone down including Andhra Pradesh, do2n 2.1% to Rs.8375 per MT; Karnataka down 0.7% to Rs.8407 per MT; Tamil Nadu down 0.17% to Rs.8570 per MT and Uttar Pradesh down 1.35% to Rs.9750 per MT. Prices have remained stable in Gujarat at about Rs.9500 per MT, Maharashtra at Rs.8500 per MT, but reported to be up in Rajasthan by 4.8% to Rs.10050 per MT. There is a good quantum of white maize also available in the market, priced at Rs.10,000 per MT.

In the futures market the price of maize for the two close contracts was lower that last week’s close. April down 0.17% to Rs.880p per MT and May down 0.27% to Rs.8975 per MT. June contract was up by 0.43% to Rs.9230 per MT, while July contact remained stable at Rs.9350 per MT. In the spot markets, the prices were down only in Karimnagar by 0.13% to Rs.8700 per MT, but were reported to be up in Nizamabad by0.6% to Rs.8461 per MT and Davangere by 0.20 to 9038 per MT.

Pearl Millet (Bajra) prices were down 6.1% to Rs.9235 per MT, but remained higher than last year by 4.3%. Prices were also higher than last year. Prices in Gujarat have touched Rs.10,730 per Mt, while in Rajatshan and Uttar Pradesh are Rs.9760 per Mt and Rs.8610 per MT respectively.

Sorghum (Jowar) prices have also moved up by 3.6% to Rs.11234 per MT and are higher than last year by 21.4%. Prices are also higher than maize by 23.4%. Prices in Maharashtra are close to Rs.12,500 per MT, while in Rajasthan are Rs.11180 per MT and Karnataka Rs.9860 per MT. While Jowar/Sorghum for food is available at Rs.16000 per MT at the market yard.

Barley prices have also increased by 4.4% to Rs.8593 per MT and prices are reported to be 5% higher than last year. On the futures market as well the spot market, prices moved up. Apr up 2.7% to Rs.9538 per MT; May up 1.80% to Rs9620 per MT; Jun up 6.77% to Rs.9836 per MT; July up 3.7% to Rs.10030 per MT. Aug and Sept contracts were indicated at Rs.10170 and Rs.10164 per MT respectively. Prices in US for feed barley (FOB US gulf) were indicated at $210 for April and $200 per MT for Jun.

US markets this week were down, showing that there is enough corn in the market. May delivery down 4.75% to $140.38 per MT’ Jul down 4.51% tp $144.87 per MT and Sept down 4.41% to $148.25 per MT. FOB gulf prices were down correspondingly and indicated at %160-166 per MT for April – July period. FOB PNW for the same period was indicated at $183-187 per MT.

DDGS prices on FOB basis have move up slightly as there are reports that some plants have closed for maintenance, but the demand remains higher domestically and farmers are trying to increase the use of DDGS in all rations in the US. Export demand is also strong. Prices were indicated at $ 149 for Apr; $144 for May and $142 for Jun delivery. On CNF basis SEA region, prices to Vierman were $252 – 256 per MT and for China $240-244 per MT for May – June period. 

The freight markets were down this week and as per reports, Gulf-Japan benchmark was indicated at $69 per MT while PNW-Japan benchmark was indicated at $41 per MT.

As per the latest USDA report (Mar 10,2 010), world corn production for 2009/10 is raised 5.9 million tons to 803.69 MMT and ending stocks up to 140.15 MMT. The major reasons for increase are higher corn production in Argentina and South Africa, where the production is estimated at 21 MMT and 13.5 MMT respectively by USDA.

Harvested area and yield are raised for both countries as abundant soil moisture and lack of stressful heat during the past month supported crops through critical stages of development.

Table : World and selected countries corn production in 2010

Country	Production	Usage	Exports	Ending stocks
World	803.69 MMT			140.15 MMT
USA	333.53 MMT	282.33 MMT	48.26 MMT	45.70 MMT
China	155.00 MMT	159 MMT (Feed use 116 MMT)	0.5 MMT	48.77 MMT
Argentina	USDA 21.0 Govt 20.50	7.10 MMT	12.0 MMT (up from 9.5 MMT est, in Feb 2010)	2.54 MMT
Brazil	USDA 51.0 MMT	45.5 MMT	8.0 MMT (down from 9 MMT est in Feb 2010)	11.28 MMT
South Africa	USDA 13.50 MMT Govt. 12.961	10.40 MMT	2.5 MMT (up from 1.5 MMT estimated in 1.5 MMT)	4.31 MMT
Source: USDA Reports and other press reports

While Argentina may have produced a record corn crop, a strike called by the unions has halted loading of ships from Argentina. This year the workers are demanding a higher wage and last year it was the farmers, who are demanding removal of export tax.

Reports indicate that the corn yields are very good in Brazil, but the prices are much lower. The support price is set at BRL 13.98 per sack of 60 kg (equivalent to Rs.5941 per MT). Current prices are BRL 9 per sack of 60 kg (equivalent to Rs.3825 per MT). Several press reports indicate that farmers in Brazil may skip corn product next year and shift to Soya.

Amit Sachdev

India Representative

U S Grains Council

Email: usgcindia@gmail.com

Coarse grain prices move lower- good buy for end users

Coarse grain prices move lower- good buy for end users

Maize prices were reported lower than last week by 2.1% to Rs.9030 per MT. the prices were 7.9% higher than last year at this time of the year.  There were areas where prices wee higher than last week, Andhra Pradesh up 0.48%  at RS.8560 per MT; Karnataka 1.87% to Rs.8470 per MT; Tamil nadu 1.19% to Rs.8585 per MT and Uttar Pradesh 0.54% to Rs.9884 per MT. Prices in Gujarat and Rajasthan were reported to be lower than last week by 5.11% and 1.78% to Rs.9498 and Rs.9587 per MT respectively.

Food inflation for the week ending Mar 06, 2010 has also eased to 16.3% which is good news for the end users and consumers.

On NCDEX the prices were also down for the four contracts, April down 1.5% to Rs.8815 per MT; May down 0.77% to Rs.9000 per MT; Jun down 0.1% to 9190 per MT and Jul 1.52% to Rs.9350 per MT. In the spot market though prices in Karimnagar and Davangere were up by 0.84% and 1.13% to Rs.8712 per MT and Rs.9020 per MT respectively. Prices in Nizamabad were down by 1.13% to Rs.8438 per MT.

Prices in some areas of Karnataka have been reported lower than Minimum Support Price, GOI data also reveals 260,000 MT of maize stocks (in Karnataka), about 77000 MT of Sorghum and about 580 MT of Bajra which will be put on e-auction on the same lines as wheat.

Pearl Millet (Bajra) prices were down by 2.6% to Rs.9835 per MT and 13.6% higher than last year. Prices were higher than maize by 8.2%. Bajra prices in Rajasthan averaged Rs.9400 per MT, Gujarat Rs.10660 per MT; Rs.8660 in Haryana and Rs.8400 per MT in Uttar Pradesh.

Sorghum (Jowar) prices were down by 11.1% this week to Rs.10840 per MT and higher than last year by 13.6%. Prices are higher than maize by 16.7%. Average prices in Andhra Pradesh were reported at Rs.10500 per MT, Karnataka Rs.9800 per MT., Rajasthan Rs.9000 per MT and Rs.9380 in Uttar Pradesh. 

Barley prices were down by 8.4% to Rs.8230 per MT, but remained 6.6% higher than last year. In the futures market (NCDEX), prices for the two contracts April and May were up by 2.54% and 1.76% to Rs.9280 and Rs.9450 per MT respectively. Prices for all other contracts were stable. In the Jaipur spot market the prices were down by 0.21% to Rs.8981 per MT.

On CBOT, prices for the two contacts May and July were reported higher by 2.80 and 2.66% to $147.39 and $151.72%. For Sept contract as well prices were reported at $155.10 per MT. The FOB prices in Gulf were indicated at $167 - 172 per MT for Apr - Jun and for PNW for indicated at $191-195 per MT for Apr - Jun, reflecting on the higher CBOT values. Sorghum prices on FOB basis (US Gulf) were indicated at $177-179 per MT, about 4-6% higher than corn. 

DDGS prices on FOB basis were higher than last week slightly at $143 for Mar, $140 for Apr and $138 for May. CNF prices to the SEA region to Vietnam were indicated at $235 per MT for April and $240 for May. Prices to China were indicated at $240 for Apr and $244 for may delivery. Report are that some of the ethanol plants are on maintenance and hence the prices may be better.

Freight rates are reported to be higher again this week, due to Chinese buying also also due to the South American grain harvest. Gulf-Japan benchmark was indicated at $71 (+$1) while PNW-Japan benchmark was indicated at $43 per MT. (no change). Argentina/Brazil to China was indicated at $70 - 74 per MT.

Amit Sachdev

India Representative

U S Grains Council

E mail: usgcindia@gmail.com

Market is undecided, spot prices remain good for end users

Market is undecided, spot prices remain good for end users

Maize prices were up slightly by 0.7% this week to Rs.9223 per MT. The prices were higher than last year by 12.7%. Prices at some of the major production centers was down this week slightly. Andhra Pradesh down by 0.16% to Rs.8520 per MT; Karnataka down by 1.70% to Rs.8315 per MT; Rajasthan down by 0.22% to Rs.9761 per MT and Tamil Nadu down by 1.63% to Rs.8484 per Mt. Reports also indicate that maize stocks have been purchased by Karnataka Govt as well as the prices went below MSP in some areas. At some other locations, prices were also up like in Gujarat 0.49% to Rs.10010 per MT; Maharahstra up by 0.15% to Rs.8490 per MT and Uttar Pradesh by 1.60% to Rs.9830 per MT. Reason for prices coming down in some areas is attributed to a good arrivals as the stocks are coming in anticipating a good Rabi crop in these regions.

In the futures market prices were also reported to be up. March delivery up 1.62% to Rs.8770 per MT, April delivery up 2.05% to Rs.8950 per MT; May up 1.34% to Rs.9070 per MT and Jun delivery stable at Rs.9200 per MT. July delivery as indicated at Rs.9495 per MT on NCDEX. In the spot market however the prices were reported to be down. Nizamabad and Karimnagar, bith in Andhra Pradesh, down by 0.7 and 1.47% to Rs.8535 and Rs.8639 per MT respectively. Prices in Davangere were indicated 0.65% higher than last week to Rs.8919 per MT.

Pearl Millet (Bajra) prices dipped by 1.4% to Rs.10010 per MT, but were reported higher than last year by 15.3%. Prices were higher than maize by 8.7%.

Sorghum (Jowar) prices were reported higher than last week by 10.4% to Rs.12189 per MT, about 29.8% higher than last year and 24.3% higher than maize. The average price for Sorghum in Maharashtra was reported at 10064 per MT wherein the food grade sorghum was available in the range of Rs.15000 – 17000 per MT. Price of Sorghum in Andhra Pradesh was reported at Rs.10000 per MT, wherein good quality sorghum was trading at Rs.12000- 14000 per MT. In Karnataka the average price was Rs.9167 per MT.

Barley prices were up by 5.7% at the market yard to Rs.8990 per MT. Prices were higher than last year by 2.3%, In the futures market, while prices in April showed a slight decline of 0.11% to Rs.9050 per MT., Prices in May were indicated 1.11% higher at Rs.9286 per MT. June prices were indicated 5.09% lower than last week at Rs.9212 per MT. Indicative prices for July and August were Rs.9672 and Rs.9798 per MT respectively. In the spot market (Jaipur) prices were down by 0.22% to Rs.9000 per MT.

Corn prices slipped on CBOT for the three contracts. Mar down 2.9% to $139.36 per MT; May down by 2.98% to $143.37 per MT; Jul down by 2.84% to $143.78 per MT. The decrease was reflected in FOB prices as well, which were indicated at $163-167 for US Gulf for April/June and $187-191 per MT for PNW for Mar-June period. Sorghum price also indicated to be lower on FOB basis to $1172/174 per MT (US Gulf) for Mar-Jun period.

DDGS prices in the domestic market were reported much lower than last week at $142 per Mar and $138 for both April and May as the capacities are increasing. Anticipated production of DDGS could be 28-30 MMT in 2010, which is likely to put pressure on local prices. Prices on CNF basis to SEA region have however remain unchanged. Price of China was reported at $235 per MT while to Vietnam was $243 per MT.

The freight markets are substantially up across the board, with Gulf-Japan benchmark at $70 per MT. PNW-Japan was stable at $43 per MT. Freight rates for Argentina/Brazil to China are up again this week to $70-74 per MT.

Amit Sachdev

India Consultant

U S Grains Council

E Mail: usgcindia@gmail.com

Prices gel well for the end users on increased availability; What's in the budget for the processing sector

Prices gel well for the end users on increased availability

Maize prices moved up slightly (1.8%) on Pan India basis to Rs.9158 per MT. Prices remained higher than last year by 9.4%. There are many areas where prices moved lower than last week, including Andhra Pradesh down 0.36% to Rs.8530 per MT; Gujarat down 1.13% to Rs.9960 per MT, Tamil Nadu down 0.5% to Rs.8635 per MT. Prices in some locations were up, including Karnataka 0.69% to Rs.8490 per MT, Maharashtra up by 4% to Rs.8480 per MT, Rajasthan up by 1% to Rs.9780 per MT and Uttar Pradesh up by 1.6% to Rs.9675 per MT. Reports from Bihar indicate some contracts at Rs.9400 per MT for April/May delivery.

In the futures market the prices have slumped and are ranging between Rs.8600 - 9200 per MT. Mar down 0.46% to Rs.8630 per MT, Apr down 1.24% to Rs.8770 per MT; May down 0.3% to Rs.8950 per MT and Jun down 0.6% to Rs.9195 per MT. In the spot markets though the prices have moved up. Nizamabad up 0.3% to Rs.8595 per MT; Karimnagar up 0.37% to Rs.8770 per MT and Davangere up 0.70% to Rs.8861 per MT.

Prices of Pearl Millet (Bajra), moved up by 6.8% on pan india basis. Average prices were higher than last year by 17.4%. Prices were higher than maize by 10.6%. Prices in Uttar Pradesh were Rs.8715 per MT, while in Gujarat were Rs.10660. There are areas within the state where Pearl Millet is available at Rs.8250 - 8400 per MT, but quantities are limited. While it does make sense to use some Bajra (Pearl Millet) in poultry feed in North India, it will not be cost effective in Southern region as the freight component will make it's price much higher than maize in that region.

Prices of Sorghum (Jowar) were lower than last week by 0.6% to Rs.11040 per MT, prices however were higher than last year by 23.4%. Against maize, the average prices of sorghum was higher by 17.1%. Prices were much lower in Karnataka at Rs.8945 per MT and highest in Madhya pradesh at Rs.12810 per MT. White Sorghum, mostly used as food was at Rs.16000 per MT. Average prices in Maharashtra were Rs.9230 per MT. Low quality sorghum was available at Rs.7500 - 8500 per MT range in limited quantities.

Barley prices moved lower by about 8% to Rs.8500 per MT, Prices were also reported at 2.3% lower than last year. In the futures market too prices were lower for two contracts. April down by 2.2% to Rs.9060 per MT; May down by 1.24% to Rs.9184 per MT. Prices for June were unchanged at Rs.9698 per MT. In the spot market (Jaipur) prices were down by 2% to Rs.9020 per MT.

On CBOT, corn prices were down. The three most recent contracts Mar down 3.8% to $143.53 per MT, May down 3.74% to $147.78 per MT and July down 3.15% to $152.11 per MT. FOB values for gulf and PNW were indicated in the range of $169-172 per MT and $197-198 per MT respectively. Sorghum price on FOB GULF basis was indicated at $177/178 per MT.

DDGS prices in the domestic market (USA) are down as the corn prices are down and on FOB basis (US Gulf) were indicated at $149 per MT for Mar; $144 per MT for Apr; and $143 per MT for May delivery. It is the container freight component that add to the cost of the product. CNF prices to SEA region (Vietnam) were indicated at $243 per MT. 

There is a sudden upswing in the freight markets, US Gulf-Japan benchmark rates were up by $3 to $68 per MT and PNW-Japan were also indicated at $43 per MT, up $5 per MT.

What's in the  budget for the processing sector

In the budget 2010/11, the Finance Minister has been kind enough to the food processing sector.

1. Project imports status is granted to the initial setting up or substantial expansion of, a cold storage, cold room (including farm pre-coolers) for preservation or storage or an industrial unit for processing of agricultural, apiary, horticultural, dairy, poultry, aquatic & marine produce and meat. These projects would attract concessional rate of basic customs duty of 5%. The duty was 30% and the reduction in duty will help the industry invest in new poultry/dairy processing ventures.

2. Truck Refrigeration units for the manufacture of refrigerated vans/trucks are being exempted from basic customs duty. Such units are already exempt from excise duty. Investment in supply chain management for perishable products, specially food (meat, milk, fruits and vegetables). In line with point 1, new projects for processing.  

The duty reduction will help the sector increase investment in the sector.

Amit Sachdev

India Representative

U S Grains Council

E mail: usgcindia@gmail.com

Coarse grain prices tumble - good times for end users; India's Budget Highlights

Coarse grain prices tumble - good times for end users

Maize prices were up a tad this week on pan India bases. An increase of 0.5% to Rs.8994 per MT. Prices were however higher than last year by 9.2%. Prices were down in Andhra Pradesh by 0.6% t Rs.8565; Maharashtra to Rs.8150; Rajasthan by 0.3% Rs.9682; and Uttar Pradesh by 4% to Rs.9516 per MT. Prices were up in Gujarat by 8.5% to Rs.10075 per MT and Tamil Nadu by 2.5% to Rs.8670 per MT.

The average price for Feb 2010 was Rs.9100 per MT, 10.90% higher than last year, but 1.89% lower than Jan 2010. One reason attributed to lower prices is increased availability as Rabi crop is available in the market.

In the futures market (NCDEX), prices of maize have slumped by 2.36% for Mar 2010 to Rs.8670 per MT. Apr down by 1.49% to Rs.8880 per MT; May down by 2.70% to Rs.8980 per MT and June down by 2.09% to Rs.9250 per MT. In the spot markets as well prices are down, Nizamabad 2.46% to Rs.8569 per MT; Karimnagar to Rs.8737 per MT and Davangere down by 1.13% to Rs.8799 per MT.

Pearl Millet prices are also down by 3% to Rs.9593 per MT, but remain higher than last year by 11.7%. Prices are higher than maize by 6.2%. The average price in Feb 2010 was Rs.9759 per MT, 19.57% higher than last year (feb 2009). The average price is however lower than Jan 2010 by 2.5%.

Sorghum prices were down by 10.4% to Rs.11113 per MT, remained higher than last year by 10.1%. Prices are also higher than maize by 19.1%. Average price in Feb 2010 was Rs.11260 per MT, 12.05% higher than Feb 2009 price and only a tad (0.2%) higher than Jan 2010 price.

Barley prices moved lower by 3.2% to Rs.9245 per MT. but remained higher than last year by 8.81%. Average price for Feb 2010 was Rs.9367 per MT, 9.3% higher than Feb 2009 prices and 0.72% higher than Jan 2010 price.

On the NCDEX, barley prices were down for Apr by 0.3% to Rs.9270 per MT; May by 0.13% to Rs.9300 per MT and Jun by 1.54% to Rs.9698 per Mt. Prices were stable at Rs.10256 for Aug 2010, but moved lower in the spot market Jaipur by 0.33% to Rs.9208 per MT.

In the International market, corn prices surged and reached a six week high. Mar contract was up 5.2% to $149.20 per MT, May up 5% to $153.53 per MT and Jul up by 4.33% $157.07 per MT. The increase is prices was reflected in FOB prices. Prices on FOB basis for US Gulf were indicated at $170/177 per MT for Mar - Jun period, while FOB (PNW) were indicated at $204/207 per MT. Sorghum prices on FOB basis (US Gulf) were indicated at $182/184 per MT for May-Mar period. 

Demand for DDGS is increasing the domestic as well as the international markets. US exported about 787 TMT of DDGS in 2004 and in five years (2009) export is close to 5.52 MMT. from 2008 to 2009, exports have increased by 1.11 MMT, showing without doubt that the product is good and has been accepted in the world market as a feed ingredient of choice for making available protein and energy in the livestock rations. DDGS price on FOB basis (US Gulf) was indicated at $155 per Mt for Mar; $152 for Apr; and $146 for May. CNF prices in SEA region was indicated at $245/250 per MT.

Chinese new year has ended and the freight markets are showing a reversal and rates have increased slightly. Gulf-Japan benchmark was indicated at $65 per MT while PNW - Japan was indicated at $38 per MT.

India's Budget Highlights 

As the finance minister has put out the budget and increased the fuel prices, there are indications that it will fuel WPI based inflation marginally by 0.41% and it will also have cascading effect on other products including food products as well. Foods grains transport is exempted from payment of service tax and may help little, but not much. 

To give a boost to agriculture a four pronged strategy is suggested, which includes a second green revolution and increasing agricultural production, increasing assistance to food processing,  reducing wastage and higher credit to farmers. But as the subsidy on fertilizers have been reduced and a new nutrient based subsidy (NSB) system put in place, the price of fertilizers is likely to increase. UREA prices are expected to go up by 10%   

The budget is also expected to spur demand as income tax payers will be able to save more money and this would in turn help the economy. 

Though much has been done about agriculture, it is important to realize that the share of Agriculture in India's GDP is declining and will further decline. Share of Agriculture in India's GDP was 19% in 2005 and is close to 16% in 2009 and may be down to 12.5% by 2014 as per a report.

Amit Sachdev

India Representative

U S Grains Council

E Mail: usgcindia@gmail.com

Current maize prices down, production down too for 2009/10; US Corn production estimated higher for 2010

Current maize prices down, production down too for 2009/10; US Corn production estimated higher for 2010

Maize prices have softened across the country. Pan India average price of maize is down by 2.3% to Rs.8951 ($194) per MT. The prices are however higher than last year by 8.8%. Within the states, prices across the state markets have fallen, with Maximum drop in Gujarat by 8.22% to Rs.9278 ($201) per MT, followed by Uttar Pradesh by 4.9% to Rs.9916 ($215) per MT. Prices in Tamil Nadu are down by 3.8% to Rs.8458 ($183) per MT; Rajasthan by 3.7% to Rs.9710 ($210) per MT; Karnataka down by 0.9% to Rs.8350 ($181) per MT and in Andhra Pradesh down by 0.26% to Rs.8622 ($187) per MT. Reports are that at some market yards, prices have been lower than MSP levels as well.

Based on the 2^nd Advance estimates for food grain production in India overall coarse cereal production in 2009/10 is estimated to decline by 14.38 percent to 34.27 MMT from 40.03 MMT in 2008/09. Within the coarse cereals, maize production is estimated at 17.30 MMT, against 19.31 MMT last year, a drop of 10.41%. The prices are not following the trend as there is ample availability at present at the market yards across the country, which has put pressure on the prices offered to the farmers at the market yard.

In the futures market too the prices were down for all contracts. Mar down 2.25% to Rs.8880 ($192) per Mt; Apr down 2.4% to Rs.9015 ($195) per MT; May down 1.7% to Rs.9230 ($200) per Mt; and June down 1.51% to Rs.9445 ($205) per MT. The prices saw a similar trend in the spot markets as well, with prices down in Nizamabad by 0.74% to Rs.8786 ($190) per MT and in Davangere by 2% to Rs.8900 ($193) per MT. Prices were up slightly in Karimnagar by 0.33% to Rs.8740 ($189) per MT.

Pearl Millet (Bajra) prices have shown a marginal drop of 0.5% to Rs.9887 per MT. However, prices are higher than last year by 18.5%. Against maize the prices are higher by 9.5%.

Sorghum prices have risen by 14.4% this week at the market yard to Rs.12404 per MT. Against last year, the increase is about 19.8%. Sorghum prices are higher from maize by 27.8%.

Barley prices have also risen to Rs.9546 per MT, an increase of 10.2%. Against last year, the prices are higher by 4.9%.

In the futures market prices were down by 3.3% for Apr to Rs.9300 per MT and also for May by 3.6% to Rs.9430 per Mt. Prices were stable at Rs.9850 per MT for Jun contract and opened at Rs.10256 per Mt for August contract. In Jaipur spot market prices were down by 0.28% to Rs.9239 per MT.

On CBOT, corn prices were down slightly. Mar contract closed 0.27% lower at $141.72 per MT, May down by 0.53% to $146.21 per MT and Jul down 0.51% to $150.54 per MT. FOB prices were more or less stable at $167/169 for Gulf and $192/195 for PNW for the period Feb-May. Sorghum prices on FOB Gulf basis were indicated at $1 lower than last week at $172/177 per MT for the period Mar-May.

In its latest reports The U.S. Department of Agriculture expects that U.S. farmers to would plant 89 million acres of corn and 77 million acres of soybeans in 2010. The 2010 corn crop is projected at 335.28 MMT, slightly bigger than the 2009 crop and up from the baseline projection of 329.18 MMT. USDA projects that Ethanol production would continue to be a major driver of the corn market, with an estimated usage 114.3 MMT of corn used in 2010. This is higher than the 2009 usage and also from the baseline usage of 111.7 MMT.

DDGS prices remained stable and availability strong as new ethanol plants are coming online. FOB values for Feb were indicated at $164 per MT and down to $157 per MT for Mar and $153 for April. Delivered prices were indicated at $235/237 for China. CBOT has announced futures trade in DDGS from April 26, 2010.

The freight rates moved up slightly. Gulf-Japan benchmark was up to $63 per MT and PNW-Japan also up to $37 per MT. Freight rates from Argentina/Brazil to China also showed an uptrend and were indicated at $47/50 per MT.

Amit Sachdev, India Representative, U S Grains Council, E Mail: usgcindia@gmail.com

SPOT prices see red, futures up for maize

SPOT prices see red, futures up for maize

Maize price were down by 1.5% to Rs.9160 per MT, but prices remained higher by 10.2% against last year. Prices were down in Andhra Pradesh by 0.9% to Rs.8645 per MT; Karnataka by 1.6% to Rs,8425 per MT; Maharashtra 2.7% to Rs.8400 per MT and was up in Gujarat by 3.34% to Rs.10110 per MT; Rajasthan by 4% to Rs.10083 per MT and Uttar Pradesh by 3.63% to Rs.10430 per MT.

In the futures market the prices were up for all contracts. Feb up by 1.71% to Rs.8900 per MT; Mar up by 1.73% to 9085 per MT; Apr by 1.53% to RS.9240 per MT and May by 1.51% to Rs.9390 per MT. June contact closed at Rs.9590 per MT. In the spot markets though the prices were down in Nizamabad by 0.41% to RS.8852 and o.41% in Karimnagar to Rs.8711 per MT. Prices were up in Davangere by 1.11%.

Pearl Millet prices were up by 3.3% to Rs.9938 per MT, but were higher than last leat by 19.8%. The prices are also higher than last year by 7.8%.

Sorghum prices moved up by 1.4% to Rs.1039 per MT, but are 1% lower than last year. However prices are higher than maize by 15.5%.

Barley prices were down by 13.5% to Rs.8661 per MT, but were higher than last year by 7.2%.In the futures market prices remained more or less stable but in the spot market of Jaipur prices were down by 0.37% to Rs.9265 per MT.

Corn prices on CBOT moved up for the three contracts. Mar up by 3.97% to $142.11 per MT; Mat 1.47% to $146.99 per MT and July 3.6% to $151.32 per MT. FOB prices (US Gulf) were more or less stable at $167/168 per Mt for Feb-April and FOB PNW was up to $193/198 for the period Feb-April.

USDA’s WASDE report increased U.S. corn use for ethanol by 2.54 and export by 1.143 dropping end stocks by 1.143 MMT. The world stocks were also cut by 2.15 MMT

DDGS prices on FOB basis have gone up for Feb ($163 pr MT), but down for other months to $155 (Mar) and $145 for April. CNF price to China was stable at $239 per MT.

Freight rates have dropped as the Chinese new year has started and the festivities will be on for next 15 days. Gulf-Japan benchmark was down by $2 per Mt to $61 per Mt and also for PNW-Japan down to $35 per MT.

Amit Sachdev, India Representative, U S Grains Council. E mail: usgcindia@gmail.com

Increased availability keep coarse grain prices stable; Milk prices will pressure inflation, increased availability can help

Increased availability keep coarse grain prices stable

On pan India average prices have gone up slightly by 1.8% to Rs.9300 ($200) per MT and remain higher than last year by 11%. Prices in Gujarat, Karnataka and Uttar Pradesh have come down by 3.9%, (Rs.9783/$210), 1.3% (Rs.8565/$184) and 0.29% (Rs.10064/$216) respectively, while prices have moved up in Andhra Pradesh, Maharashtra, Rajasthan and Tamil nadu by 0.20% (Rs.8656/$186), 2.8% (Rs.8637/$185), 0.76% (Rs.9688/$208) and 0.8% (Rs.8800/$189) respectively. There is also anticipation of a good crop in Rabi, which may not cover the losses in Khariff crop, but will increase availability and pressure prices for some time though.

International cues and good domestic availability has put pressure on maize prices in the futures market. Feb down 1.4% (Rs.8750/$188); Mar down 1.1% (Rs.8930/$192); Apr down 0.76% (Rs.9100/$195) and May down 1% (Rs.9250/$198). In the spot markets, prices were down in Nizamabad by 0.16% (Rs.8889/$190) and Davangere by 1.5% (Rs.8986/$193), but up in Karimnagar by 0.32% (Rs.8786/$189).

Pearl Millet (Bajra) prices have been stable at Rs.9620 ($206) per MT, and are up against last year by 15.8%. Against maize the prices are up by 3.3%.

Sorghum (Jowar) prices have slid lower this week again by 2.1% to Rs.10685 ($229) per MT, but have remained higher than last year by 12.9%. Prices are higher than maize by 12.9%.

Barley prices on pan India average are up by 5.9% to Rs.10015 ($215) per MT and are higher than last year by 13%. . Prices are also up in the futures slightly by 0.8% for Apr (Rs.9620/$206) and 0.14% for May (Rs.9800/$211) and down for June by 1.5% to Rs.9850 ($212) per MT. In the spot market though the prices are stable at Rs.9290 ($199) per MT.

On the CBOT, corn prices are down for Mar contract by 2.46% to $136.68 per MT, only due to large stocks in US and good corn crop anticipated from Argentina and Brazil. May contract was up slightly by 0.26% to $144.87 and July down by 1.86% to $148.81 per MT. Prices on FOB basis (US Gulf and PNW) were indicated at $165/166 and $187/190 per MT respectively for Feb/may period. Sorghum prices on US Gulf basis were indicated to be higher than corn at $169/174 per MT.

Due to positive ethanol margins and increased availability, DDGS prices are under pressure in the domestic market and demand is increasing in domestic as well as export markets. Prices were indicated at $159/166 for Feb/May period on Fob basis (US Gulf) and CNF to China was indicative at $237 per MT for a 37% pro-fat DDGS.

Freight markets were down as Chinese buying is slow as the date for Chinese New Year approaches. Gulf-Japan benchmark was indicated at $63 per MT, while PNW-Japan was down to $37 per MT. Argentina/Brazil - China freight was indicated at $47/50 per MT, down by $3-4 per MT.

Milk prices will pressure inflation, increased availability can help

Food inflation is again up to 17.56% for the week ending Jan 23, 2010. Most of the co-operatives in India specially in Gujarat, Maharashtra and Karnataka have increased the milk prices in retail claiming increased prices of feed and ingredients. The increased milk prices in Feb will put pressure on food inflation and unless milk production can be increased and milk availability in the market be increased, prices are not going to come down.

While new germplasm has been introduced in India increased production will only be available 3 years from now, however to enhance milk availability immediately, farmers can use a Calf Milk Replacer (CMR), which will cost less (atleast 10% lower than the sale price of milk) and free milk for the farmer to sell/pour in the dairy. In the first 4 weeks, a calf can consume about 90 - 120 liters of milk, depending on its size. It is a sizable amount of milk in one year based on the large number of livestock India has and calves born. Considering 24 million females calves, consuming 100 liter of milk, it would be 2400 million liters (2.4 MMT) of more milk available for human consumption.

Amit Sachdev,

India Representative,

U S Grains Council.

E mail: usgcindia@gmail.com

Coarse cereals prices slide lower on better availability

Coarse cereals prices slide lower on better availability

Maize prices slid by 2.1% at the market yard this week and averaged Rs.9138 ($ 198) per MT. The prices though are higher than last year by 9.9%. The average prices some states were down including Andhra Pradesh by 0.75% to Rs.8635 ($187) per MT; Gujarat by 1.2% to Rs.10185 ($221) per MT; Maharashtra by 2.5% to Rs.8400 ($ 182) and Rajasthan by 10.6% to Rs.9620 ($208) per MT. Prices were reported to be up in Karnataka by 3% to Rs.8676 ($188) per MT; Tamil nadu by 1.4% to Rs.8730 ($189) per MT and Uttar Pradesh by 1.6% to Rs.10085 ($219) per MT. The average price of maize for Jan 2010 was Rs.9278 ($201) per MT, 16.34% higher than Jan 2009, but 1% lower than Dec 2009 prices at the market yard.

In the futures market as well, prices fell by mire that 4% for some contracts. Feb contract down by 3.84% to Rs.8875 ($192) per MT; Mar down 3.9% to Rs.9030 ($196) per MT; Apr down 4.46% to Rs.9170 ($199) per MT and May down 3.3% to Rs.9350 ($203) per MT. In the spot markets as well, prices have stumbled, but not by the above levels. Nizamabad down 1.64% to Rs.8904 ($193) per MT, Karimnagar down 0.17% to Rs.8735 ($189) per MT. Davangere (Karnataka) was the only market, where spot market prices were up by 0.69% to Rs.9127 ($198) per MT.

Pearl Millet (Bajra) prices also slid at the market yard by 4.1% reaching Rs.9609 per MT. The prices are higher than last year by 15.5%. The prices are higher than maize by 4.9%. The average price of Pearl Millet for Jan 2010 was Rs.10012 per MT, 26.9% higher than Jan 2009, but 0.76% lower than the prices in Dec 2009.

Sorghum (Jowar) prices slid by 3.8% at the Market yard reaching Rs.10916 per MT. Prices are higher than last year by 10.4% and also higher than maize by 16.3%. The average prices of Sorghum in Jan 2010 was Rs.11237 per MT, 20.32% higher than the price in Jan 2009, but 10.9% lower than the price in Dec 2009.

All coarse cereals prices have remained subdued in Jan 2009 as the deliveries were better in the month due to delayed harvest (Nov 2009).

Barley prices shot up by 5.4% for this week to Rs.9436 per MT. Prices are higher than last year by 5.1%. The average price of Barley for Jan 2010 was Rs.9300 per MT, about 4.26% higher than Jan 2009 and also 6.32% higher than Dec 2009 prices. India produced only one crop for barley and the new crop will be arriving the markets in Mar/April.

In the futures market though Barley prices moved lower in anticipation of a good crop. Apr contract down 1.23% to 9602 per MT; May down 4% to Rs.9760 per MT and Jun down 4.76% to Rs.10000 per MT. In the spot market at Jaipur, prices were down by 0.63% to Rs.9291 per MT. In the US market, feed barley was indicated at $215 per MT FOB US Gulf.

On CBOT, corn prices were down by the end of the week, after starting at a high at the start of the week. Prices ended lower for all near contracts, Mar down 2.36% to $140.14 per MT; May down 2.14% to $144.47 per MT and Jul down 2.07% to $148.81 per MT. Prices FOB US Gulf were indicated at $169 for Feb; $165 for Mar; $166 for April and $167 for May 2010. FOB PNW prices were indicated at $189 – 192 per Mt for the same period.

DDGS prices have remained almost same as last week in the US. FOB Guld prices are indicative at $155 per Mt for Feb, while $149 per Mt for Mar 2010. CNF prices to SEA region (Vietnam) were indicated at $236 per MT.

Freight rates are down slightly, mainly due to reports that the credit squeeze will be announced in China soon. US Gulf-Japan was down to $68.50 per MT, while PNW-Japan was down to $38 per MT.

Amit Sachdev, India Representative, U S Grains Council. Email: usgcindia@gmail.com