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