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