Maize harvest delayed a bit; US farmers to plant relatively less corn, prices up; Sorghum prices down a bit; Ethanol is a cheapest source of octane

Indian maize harvest for Rabi will be late, another 2 weeks before the new corn is large quantities could be seen in the market. In the interim, the price have gone up, in Gulabbagh by over 9% in last one month. Against last week, prices are down slightly and are at Rs.13000/MT. Prices in Erode, (South) have also gone up by over 4% in last one month and currently close to Rs.13900/MT. Against last week, prices are up by 2.5%

In the US, farmers will be planting more Soybeans and less corn and that has led to higher corn prices. Corn acres in 2018/19 are projected at 88 mill hac and Soybeans at 89 mill hac. This had led to US corn prices moving up on CBOT, May corn up 0.83% to $152.90/MT; Jul corn up1.17% to $156.29/MT; Sep up 1.61% to $159.05. FOB prices were volatile last month and US Gulf (FOB were at a high of $190/MT on Mar 16, but last week were down at 188/MT, up $2, against last month end close. FOB PNW prices are now at $200/MT, moving up steadily. Sorghum prices however have shown a decline and from a peak of $206/MT (FOB), prices are down by $6/MT are at $200/MT. FOB Texas, prices are indicated at $190/MT.

Higher demand of DDGS in the domestic as well as foreign markets has led to higher prices, which are indicated at $245/MT FOB US Gulf, up 10% in one month. Prices of DGGS to Vietnam are indicated at $251/MT, China $251/MT, Chittagong $283/MT and Myanmar $279/MT. Other co-product price, CGM prices have been more or less stable at $620/MT (FOB US gulf) for the last couple of weeks.

While all other commodities, co-product prices are up, ethanol prices are moving downward (down). May futures are down 3.11% in one month at 0.3794/Lit; Jun down 2.78% in one month at 0.3823/Lit; July at $0.3854/Lit and Aug at $0.3870/Lit. FOB prices of US ethanol too have shown a decline continuously over last one month and down by 2.88% at $0.404/lit (US Gulf); down $0.408/lit (PNW). While Brazilian ethanol prices also have been moving down, but still are much higher than US ethanol at $0.591/Lit. Aromatics, which are used a source of octane in gasoline, prices are down at $0.70/lit, but still much higher than ethanol, which is the cheapest source of ethanol in the market.

Amit Sachdev, Serving Agriculture and Livestock in India, Bangladesh and Sri Lanka * E Mail: asachdev@grains.org

This entry was posted in Uncategorized. Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

Post a Comment

Your email is never published nor shared. Required fields are marked *

You may use these HTML tags and attributes <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*
*

Subscribe without commenting

  • Subscribe to the Blog

  • Follow us on Twitter

    You can also follow us on Twitter @TechproIndia !!
  • Post Archives

  • Tags