Maize prices remain more or less stable in India and dip in the world market

Maize prices remain more or less stable in India and dip in the world market

Maize prices in the market yard was down by 0.8% to Rs.9336 per MT. This is the pan India average value, and prices are higher in some state markets ad lower in some. But overall the prices are higher than last year by 13.2%. Prices in in some states moved up against last week, including Andhra Pradesh by 2% to Rs.8570 per MT; Gujarat by 0.73% to Rs.10290; Maharashtra by 1.4% to Rs.8620; Rajasthan by 7.6% to Rs.10760; Tamil Nadu by 0.93% to Rs.8610 per MT and Uttar Pradesh by 5.21% to Rs.9925 per MT. It was only in Karnataka that the prices slid lower by 2.2% to Rs.8400 per MT. One of the reason for lower overall average is the lower minimum prices at the market yards, due to some quality issues. The high prices in the market yards are much higher.

In the future markets though the prices moved a tad lower against last weeks. Feb Rs.9230, down 1%; Mar Rs.9400, down 0.84%; Apr Rs.9599, down 0.63%. Prices for May was up by 1.55% to 9820 per MT, anticipating a supply demand gap during the period and with no new crop being available after April/May 2010. If all goes well, the Rabi harvest will be starting by Feb end/March and mat be little early in some states, which is likely to stabilize the prices for the time being. In the SPOT markets, prices moved lower in all the markets. Nizamabad Rs.9053, down 1.2%; Karimnagar Rs.8750, down 0.56% and Davangere Rs.9064, down 0.92%.

Pearl Millet prices also moved lower by 2.3% at Rs.10025 per MT, prices are higher than last year by 24.2% and 6.9% against maize.

Sorghum prices moved up in the key states by 3.7% to RTs.11348 per MT and also was higher than last year by 17%. Prices were higher than maize, the key energy ingredient for feed and starch by 17.7%, making it impossible to use the product in the two sectors. Sorghum may still be used in poultry and cattle feed to some extent is some states, where the prices are comparable, but again a complete replacement with maize may not be possible.

Barley prices moved lower at the market yard by 7.8% to Rs.8972 and were also down by 4.5% against last year.

In the futures market (NCDEX), prices are lower for Apr by 5.7% to Rs.9722 per MT and for May by 4.46% to Rs.10020 per MT. For Jun contract, the prices are 10500 per MT. In the spot market (Jaipur), prices were down by 1.64% to Rs.9350 per MT.

On CBOT, corn was down for the three contracts. Mar down 1.25% to $143.53 per MT; May down 1.93% to $147.63 per MT and July down 1.37% to $151.96 per MT. Reasons being attributed to the prices moving lower are anticipation of a higher corn crop for 2010 and a proposal from Obama Administration’s, that is likely to bar commercial banks from investing in hedge funds may have had an impact on the commodity prices now and in future as well. FOB value of corn for Gulf is down to $172 per MT for Feb and $169 for Mar/Apr 2010. FOB PNW prices are indicated at $192/195 per MT for Jan-Apr period. Sorghum price (FOB US Gulf) is indicated a little higher than corn at $175-177 per MT for Mar/Apr delivery.

DDGS prices for Feb-Apr on FOB basis (US Gulf) have been indicated lower than last week, Feb $155 per MT; Mar $149 per MT and Apr $146 per MT as there is good supply. CNF value (SEA/Thailand) is indicated at $237 per MT. The demand for DDGS is high in China as the feed manufacturers and livestock owners see a value in feeding the protein/energy product. It is a good alternate to other protein meals, whose prices are much higher. Corn Gluten Meal (FOB US Gulf) is indicated at $660 per MT.

The freight rates slid lower slightly by about $1.50 per MT this week. Gulf-Japan down to $68.50 per MT and PNW-Japan benchmark was down to $39 per MT. Freight from Argentina/Brazil to China was indicated at $51/54 per MT.

Amit Sachdev

India Representative

U S Grains Council

Email: usgcindia@gmail.com