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 2nd 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.
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.
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