Maize prices move up in India; Down in the US; Exports from India feasible

Maize prices in India have moved up slightly again this week by 1.5% to Rs.10294 per MT on pan India average basis. In most of the cases, consumption centres reports delivered prices to be close to Rs.11500 – 11800 per MT. The prices on Pan India basis are higher than last year by 11.2% against the same time last year. While prices in some of the markets did show a slight downtrend like in Andhra Pradesh down by 0.97% to Rs.10068 per MT; Gujarat down by 3.22% to Rs.11076 per MT and Uttar Pradesh down by 2.07% to Rs.10250 per MT, prices at others production areas were higher. Karnataka up 0.24% to Rs.10159 per MT; Madhya Pradesh up by 3.86% to Rs.10008 per MT; Maharashtra up by 1.10% to Rs.10039 per MT; Rajasthan up by 3.18% to Rs.10531 per MT and Tamil Nadu up by 1.48% to Rs.10813 per MT.

In the futures market (NCDEX), prices were up three contracts and down for Mar contract by 2% to Rs.11670 per MT. Dec contract closed at Rs.11130 per Mt up 0.13% against last week. Jan up 0.62% to Rs.11370 per MT; Feb up 0.38% to Rs.11650 per MT. Spot prices in some of the key markets were also up. Nizamabad reported prices to be up 1.59% to Rs.11391 per MT; Davangrere up 3.09% to Rs.11340 per MT, Karimnagar up by 0.13% to Rs.10980 per MT and Sangli up by 1.05% to Rs.11237 per MT.

Pearl Millet prices were  down by 1.4% to Rs.9912 per MT. Lowest prices were reported from parts of Rajasthan and Haryana. However average prices were higher than last year by 8.6%. Prices are lower than maize by 3.9%. Delivered prices of pearl millet to south India could be Rs.10500 per MT about Rs.1000 lower than maize. Also as cheap rice becomes available in some of the markets, it could end up being used in layer rations, thus bringing down the feed cost in those areas.

Sorghum prices were up by 7.4% against last week to Rs.16595 per MT, higher than last year by 23.9% and also higher than maize by 38%.  

Barley prices were up on pan India average prices by 3.8% to Rs.11018 per MT, but lower than last year by 8.5%. On NCDEX, barley prices were down for two contracts, Dec down 0.61% to Rs.11600 per MT and jan down by 0.45% to Rs.11860 per MT and up for Feb by 0.73% to Rs.12300 per MT. Spot prices at Jaipur were reported to be down by 0.21% to Rs.11850 per MT.

Corn prices on CBOT were down this week. The Dec contract ended on Dec 14, 2011 closing just about $2.00 per MT (lower by 0.92%), lower than last weeks close on Friday at $228.33 per MT. March contract did show some upward trend and ended higher at 234 per MT mid week, but ended lower at $229.51 per MT by the end of the week, losing 1.65% against its last week’s close. May contract was also down by 1.88% to $232.90 per MT and Jul down 1.73% to $235.57 per MT. FOB values were down by $4-6 per MT for Jan – May delivery to $250-253 per MY (US Gulf) and $278-283 per MT (PNW). Based on this the CNF values to SEA region would translate to $310 per MT of higher. Prices from India on FOB basis are close to Rs.11800 – 12000 per MT on FOB basis ($220 – 223) per MT and on CNF basis prices would range from $240 – 245 per MT. A differential of over $70 per mt would certainly move corn from this part of the world. With the exchange value at Rs.53.7 to a dollar, it is feasible and profitable for the endusers in other parts of the world to buy Indian corn.

DDGS prices in US have also come down following a correction in corn prices and FOB prices (US Gulf) were indicated at $247-244 per MT for the period Dec, 2011 – Feb, 2012. CNF prices to Vietnam were indicated in the range of $289-293 per MT and to China at $290-285 for the same period.

The freight values have not changed much is last one month or so. US Gulf-Japan benchmark freight is reported $58 per MT, while PNW-Japan was indicated at $30.5 per MT. US Gulf-China was indicated at $56 per MT and PNW – China at $28 per MT. Argentina/Brazil to China was indicated at $54-55 per MT.

Feed barley prices in the US were reported at $300 on FOB basis, while malting barley 2 row to 6 row was reported to be at $163-265 per MT depending on the location. The cheapest being at elevators in Geneese and max at Ashton. In the terminal market (Minneapolis), FOB price for Malting barley was $305 per MT.

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

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One Comment

  1. Martin
    Posted December 19, 2011 at 7:31 AM | Permalink

    Sir,
    Thank you for posting the FOB and CNF rates with respect to exports from India. Are definitely helpful in comparison.

    Regards

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