Future prices move up in India; stable in USA. WASDE report shows increase in world corn production

The average maize price on pan India basis was stable at Rs.10139 per MT at the market yard. Delivered prices were ranging from Rs.10700 – 11500 per MT depending on the location. The prices are higher than last year by 8.7%. Prices in some most of the production states though showed an upward trend on an average. Andhra Pradesh up by 1.25% to Rs.10167 per MT; Gujarat up by 2.08% to Rs.11444 per MT; Karnataka up by 0.45% to Rs.10135 per MT; Maharashtra up by 3% to Rs.9930 per MT; Rajasthan up by 1.95% to Rs.10206 per MT; Tamil nadu up by 1.38% to Rs.10655 per MT and Uttar Pradesh up by 5.68% to Rs.10467 per MT. Prices in Madhya Pradesh were down by 2.27% to Rs.9636 per MT.

On NCDEX, the prices for the four contracts were up. Dec up 0.49% to Rs.11115 per MT; Jan up 0.49% to Rs.11300 per MT; Feb up 0.82% to Rs.11605 per MT; Mar up 1.36% to Rs.11910 per Mt. Apr was at Rs.12215 per MT. Spot prices were also up in key markets. Nizamabad up 1.16% to Rs.11212 per MT; Davangere up 0.64% to Rs.11000 per MT; Karimnagar up 0.96% to R.10965 per MT and Sangli up by 0.77% to Rs.11120 per MT.

Pearl Millet prices were up by 4.8% to Rs.10053 per MT, higher than last year by 8.7%. Prices of Pearl Millet were lower than maize by 0.9%.

Grain Sorghum was indicated Rs.15458 per MT, 2% lower than last week, but 19.6% higher than last year. Prices were also higher than maize by 34.4%.

Barley prices in India were indicated on an average at Rs.10618 per MT, 3.3% higher than last week, but 5.6% lower than last year.

On NCDEX, the barley prices were up for the three contracts. Dec up 1.32% to Rs.11672 per MT; Jan up 1.81% to Rs.11914 per MT and Feb up 3.47% to Rs.12210 per MT. Spot prices in Jaipur were also up by 0.63% to Rs.11875 per MT.

On CBOT, the corn prices did not change much. On Monday the prices were down by about $2 per MT for Dec corn and reach a high of $232.27 n Thursday. The prices settled at $230.45 per MT on Friday close, just about 0.17% lower than last friday’s close. Mar corn was also down by 0.17% to $233.92 per MT. may corn closed at $237.38 per MT without any change. FOB prices were indicated little lower than last week on GULF basis at $256-257 per MT and PNW prices were same as last week at $285 per MT. DDGS prices were down by $8 per MT for immediate delivery and by $12 for Feb delivery. Prices were indicated at $252 (Dec) and $249 for Feb delivery on FOB US Gulf. CNF prices to Vietnam were indicated at $303 – 298 per MT and China at $292 – 288 per MT.

The latest WASDE report was out on Dec 09. USDA cut food and industrial usage in US to 162.68 MMT and increased corn ending stocks to 21.53 MMT. World corn production was revised and increased by 8.5 MMT to 867.5 MMT, higher than last year by almost 40 MMT. World corn ending stocks were increased by 5.6 MMT this month to 127.2 MMT, but are 1.1 MMT below last year.  The biggest surprise was China, and the corn production was revised to a record high of 191.75 MMT, up 7 MMT from last month.  The increased production has led to increased use corn in feed by almost 2 MMT in China and increase in ending stocks by 5.25 MMT. Production of corn in EU 27 was also revised upward by 1 MMT.

World barley production was increased slightly to 133.3 MMT, which is a nearly 10 MMT or 8% increase from last year.  World ending stocks were lowered to 22.6 MMT and are 11% below last year and near a 40-year low.

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

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