India maize area down, prices down for now; US corn prices move up; Co-product prices follow

India has completed the maize sowing and as per the last data available, the sowing is down by 5.08% against last year at 7.866 mill hac. It is a wait and watch situation, wherein areas have received above normal rains and some have received less rains. In the short term, expect prices to be down.

Against last week, prices corrected and were down on SPOT basis, Jalgaon Rs.14000/Mt down 3.45%; Nizamabad Rs.14900/MT down 3.63%; Davangere Rs.16650/MT down 2.35%; Sangli Rs.15400/MT down 3.75% and Gulabbagh Rs.12350/Mt down 0.38%. The crop is fast moving towards maturity.

In contrast US prices moved up a bit due to some dry weather concerns, but also as demand is up for ethanol production. Sept up 1.24% to $135.50/Mt; Dec up 0.39% to $140.39/MT; Mar up 0.38% to $145.27/MT and May up 0.37% to $148.26/MT. The FOB prices though were down a bit and indicated at $158/MT ( US Gulf); and $170/MT (PNW). Overall the US corn crop looks good, 13% is in poor and very poor condition, 13% in excellent and 74% in good and fair condition.

DDGS prices were supported by Soybean/Soybean Meal prices as they moved up this week. In addition, with Vietnam demand anticipated to move in, prices are likely to move up. The seasonal maintenance of the ethanol plants is also coming up, which would keep the prices higher. FOB prices were indicated at $170 (US Gulf) and $182-185/MT (PNW)> Delivered prices to various locations in the region, Vietnam $202/MT; China $197/MT; Chittagong $218/MT and Myanmar $217/MT.

Ethanol prices have also been moving up. Oct futures up 2.74% to $0.4061/lit; Nov up 2.13% to $0.3929/lit; Dec up 1.88% to $0.3868/Lit and jan up 1.91% to $0.3807/Lit. On FOB basis US ethanol was prices at 0.431/lit, up 2.31% against last week, but lower than Brazilian ethanol by $0.162/lit, which is priced at $0.593/lit, up 5.89% against last week. Aromatics, the key additive in gasoline, international prices moved up by 8.47% to $0.66/lit and US ethanol is cheaper than Aromatics by $0.229/lit.

Amit Sachdev, Serving Agriculture and Livestock in India, Bangladesh and Sri Lanka * E Mail: amit@techproindia.in

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