The weekly reports provide information about Indian agriculture, allied industries and market information on US commodity prices & agriculture issues being debated world over

Maize prices moved lower in India by 2.9% on pan India average to Rs.10960 per MT at the market yard – open sale. Prices were however  higher than last year by 1.8%. Expect in Uttar Pradesh, where prices showed an upward trend by 1.36%to Rs.12195 per MT, prices in all production and consumption centres were reported to be lower than last week. Andhra Pradesh down by 1.78% to Rs.10477 per MT; Gujarat down 5.05%to Rs.11556 per MT; Karnataka down by 0.64% to Rs.10741 per MT, Madhya Pradesh down by 1.26% to Rs.10952 per MT, Maharashtra down by 1.67%to Rs.10850 per MT, Rajasthan down by 4.19% to Rs.11452 per MT and Tamil nadu down by 0.82%to Rs.11427 per MT. All the above prices are the at market yard level.

On the NCDEX as well, the prices were down considerably following international ques as well and India’s production in Rabi (Apr/may harvest) which is reaching the markets now and putting pressure on the prices. May contract down 5.65% to Rs.11030 per MT; Jun down 2.9%to Rs.11420 per MT; Jul down 4.7%to Rs.11800 per MT; Aug down 2.37% to Rs.12320 per MT and Sept contract was indicated at Rs.12570 per MT. SPot prices in key markets were also reported to be down. Nizamabad down 1.98% to Rs.10992 per MT; Davangere down 1.14% to Rs.11183 per MT; Karimnagar down 1.86% to Rs.10925 per MT and Sangli down 1.20%to Rs.11800 per MT.

Pearl Millet (Bajra) prices were indicated to be down by 3.6% at Rs.11196 per MT at the market yard level, and were higher than last year by 10.1%. Prices were higher than maize by 2.1%.

Sorghum (Jowar) prices were reported to be down by 0.9% to Rs.14898 per MT and also lower than last year’s prices by 14.5%. Prices were higher than maize by 26.4%. The food grade sorghum was indicated at Rs.23000-28000 per MT at the market yard in Maharashtra.

With such prices, maize is still the grain of choice for the animal feed industry for making available energy in the rations. Oil prices and oil meal prices are way high, making feed an expensive commodity for poultry and other livestock. As summer sets in fodder is also not available and dairy farmers will more or less depend only on feed and dry fodder to fulfill the needs of the animals.

Barley prices were down by 0.3% to Rs.12693 per MT, but were higher than last year by 7.1%. The prices also fell on NCDEX and for the four contracts were reported to be down. May down 12.34% to Rs.13700 per MT; Jun down 11.84% to Rs.14100 per MT; Jul down 11.20%to Rs.14500 per MT and Aug down 9.6% to Rs.14900 per MT. Spot prices in Jaipur were also indicated to be down by 4.5% to Rs.14556 per MT. In the US feed barley on FOB basis was indicated at $305 per MT and Malting barley at Idaho falls ranged between $250-260 per MT, while in Minneapolis the malting barley was indicated at $292 per MT.

The WASDE report released this week, first for the marketing year 2012/13 pegs the barley beginning stocks at only 0.979 MMT, a historic low. Production in 2012 is pegged at 4.354 MMT, up 28%. Ending stocks are projected at 1.3 MMT, up 33%. World Barley production is pegged at 135 MMT, up 1% and the world ending stocks are estimated at 21.4 MMT in the report, down 4% against last year.

The latest report on corn suggests a low domestic feed consumption in 2011/12 by 1.27 MMT, thus increasing the ending stocks to 21.61 MMT in 2011/12.   The report puts the production of corn in 2012/13 at 375.68 MMT, up 20% due to two factors, increase in land area and also the productivity of 4.21 ton/acre. The crop has emerged beautifully in some areas. See the photo on the left. Corn emerged in Illinois on May 08, 2012 – Courtesy Jay O’Neil (Senior Agricultural Economist, IGP at Kansas State University)

Domestic feed consumption is at 138.43 MMT, ethanol use at 127 MMT, exports at 48.26 MMT. Ending stocks are indicated at 47.77 MMT, almost double the last year. World corn production is pegged at 945.8 MMT, 8.65% higher than last year and the world ending stocks are projected to be at 152.3 MMT, up 19.42% against last year (2011/12).

Corn prices on CBOT at the the start of the week were strong and moved up a bit to $261.79 per MT for the May contract and peaked at $262.19 per MT on Tuesday. By the end of the week, the prices had tumbled down by 8.18% to $239.35 per MT, as the new report came out anticipating a huge corn crop in the US and also increasing the ending stocks for the old crop (2011/12). Jul contract was down 6.32%to $228.72 per MT; Sept down 4.49% to $201.24 per MT and Dec closed the day at under $200 at $198.88 per MT.

The old crop prices on FOB basis also took a hit and on FOB basis (US Gulf) the prices were indicated at $268-252 per MT and PNW at $287-276 per Mt for the period Jun – August. The freight rates are down this week, due to two reasons, slow economic growth and issues in Euro zone creating problems in Asia, which is the production hub for products for Europe and  also the world fleet is more capacity. US Gulf-Japan benchmark freight was indicated at $50 per MT and PNW-Japan at $26.50 per MT. US Gulf to China is indicated at $47 per MT , while PNW-China at $24 per MT. Argentina-Brazil to China freight was indicated in the range of $43-46 per MT depending on the load.

DDGS prices continue to be stable or move up despite that fact that corn prices are down. As prices of other meal have increased, it is dragging DDGS prices above as well. There is a robust demand from SEA region and also China, but production is limited. Domestic consumption in the US in poultry sector is increasing. Prices FOB (US Gulf) were indicated at $285-277 per MT and Rail delivered to PNW at $275-267 per MT for May-July delivery. CNF prices to Vietnam were indicated at $344-333 per MT and to China at $338-239 per MT for the above period.

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

Maize prices on pan India basis was down by 0.4% to Rs.11446 per MT, but were higher than last year by 6.7%. Prices in all the producing and even in consumption states were down, making maize a good buy fo the poultry, dairy and the starch manufacturers. Prices were indicated tobe down in Andhra Pradesh by 4.41% to Rs.10326 per MT; Gujarat down by 4.23%to Rs.11905 [er MT; Karnataka down by 1.16% to Rs.10509 per MT; Madhya Pradesh down by 2.53% to Rs.11248 per MT and Maharashtra down by 4.53%to Rs.10921 per MT. Prices were indicated higher in Rajasthan by 2.11% to Rs.12613 per MT; Tamil nadu up by 4.75% to Rs.11743 per MT and Uttar Pradesh up by 2.41% to Rs.12194 per MT.

Prices were reported to be down for all the contracts and also spot markets on NCDEX. May down 2.25% to Rs.11720 per MT; Jun down 2.26%to Rs.12060 per MT; Jul down 2.12% to Rs.12420 per MT and Aug down 2.55% to Rs.12570 per MT. Prices in Nizamabad were down 1.52% to Rs.11655 per MT; Davangere down by 0.57%to Rs.11350 per MT; Karimnagar down by 0.73% to Rs.11937 per MT. Prices were reported to be up in Sangli by 0.41% to Rs.12050 per MT. The new crop in Bihar has started to arrive and prices at the mandi this week were ranging from a low of Rs.9800 per Mt to Rs.10400 per MT, with delivered prices at farthest destination (gujarat) at Rs.12600 per MT. The quality, traders say is better than last year. The corn at the start of the season was delivered at Rs.13400 per MT or higher and as the farmers tends to bring more stocks at the market yard, the prices have started to come down.

The average prices of maize for  the month of April 2012 was Rs.11453 per MT, 7.27% higher than April 2011 prices and 1.59% higher than March 2012 prices.

Pearl Millet prices seem to have jumped at the market yard by 3.2% to Rs.11446 per MT and prices are higher than last year by 11.1%. The  prices of pearl millet in the open market is same as maize and with maize prices coming down, it makes sense to use the highly efficient maize instead to pearl millet in poultry rations. Average price of Pearl Millet in April 2012 was Rs.11100 per Mt, 1128% higher than April 2011 prices and 5.41% higher than prices in Mar 2012.

Sorghum prices on an average were down by 1.71% this week to Rs.14481 per MT. Prices were higher than last year by 0.7%. The average prices of Sorghum for the month of April 2012 was Rs.15186 per MT, 8% lower than April 2011 prices and also 5.91% lower than Mar 2012 prices.

In Gujarat there are large tracts of land where pearl millet is sown, but it is seldom traded and grain mostly used by farmers for own food and dried stalks are used as animal feed. In addition farmers also plant pearl millet as a fodder crop in many parts of the country specially in areas where some kind of irrigation is available and prefer to feed animals with green fodder of some kind.  Same is the situation in many parts of punjab, haryana and even maharashtra where dairy farmers have taken to grow green fodder to animals and these include pearl millet (Bajra), Sorghum (Jowar) and even maize for fodder or for converting into silage.

Barley prices tend to move lower as stocks arrive in the markets in parts of Haryana, Rajasthan, UP and also parts of Punjab. Prices were down by 5.9% to Rs.12350 per MT in the open market, but were higher than last year by 12.4%. Average price od barley in the month of April 2012 was Rs.12473 per MT, 23.92% higher than April 2011 and 4.08% higher than prices in Mar 2012. Malting barley prices in US in Minneapolis were stable at $294 per MT and at Idaho falls were at $270 per MT (elevator delivery).

Corn prices in US on CBOT were up as the week started gaining almost $4 per Mt by the end of the day. Mid week saw the prices coming down and May contract lost $5 per MT closing at $240.53 per MT by the end of the day. As new of China buying corn was confirmed, prices were supporting and May contract ended at $257.07 per MT, 6.63% higher than last week’s close. Jul contract was also up by 3.71%to $246.20 per MT and Sept up 1.09%to $216.91 per MT.

The higher prices were reflected in higher FOB prices – US Gulf $289-270 for the period May-Aug and PNW at $297-272 for the same period. There are reports which indicate that prices of local corn in China are higher and it makes sense for chinese importers to look for cheaper sources, especially closer to port. US corn delivered to china (souther ports) could be closer to $340 + costs at port in China. DDGS delivered prices to China at port are closer to $325 per MT, 95% of the corn prices, making it a feasible option to buy as soy prices are higher and so are the corn gluten prices at $620 (FOB US Gulf), a sudden surge from last week;s $597 per MT.

Freight rates have also started to move up, supported by grain and iron ore supplies. Benchmark – USGulf-Japan freight was up to $54 per MT and PNW-Japan at $30.50 per MT. USG-China was indicated at $52.50 per MT while PNW-China was indicated at $28.50 per MT. Argentina/Brazil-China freight rates was indicated at $45-50 per MT depending on the load.

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

Maize prices on all India basis (averaged) were stable at Rs.11496 per Mt. Prices were higher than last year by 7.4%. In most of the markets the prices tumbled as new arrivals started to make way into the markets, specially in Andhra Pradesh down by 1.23% to Rs.10802 per MT, Karnataka down 2.90% to Rs.10632 per MT; Madhya Pradesh down 3.63% to Rs.11540 per MT; Maharashtra down 4.68% to Rs.11439 per MT; Rajasthan down 3.89% to Rs.12352 per MT; Tamil Nadu down 5.38% to Rs.11211 per MT. Gujarat which is a consumption state, prices have also come down by 2.47% to Rs.12431 per MT. Prices in Uttar Pradesh however were up by 1.05%to Rs.11907 per MT.

Due to increased arrivals, the prices on NCDEX also softened and were down for all the contracts. April contract finished on April 20 down 4.67% to Rs.11420 per MT. May was down 2.91% to Rs.11990 per MT; Jun down 2.98% to Rs.12340 per MT, Jul down 3.27% to Rs.12690 per MT and Aug down 3.37%to Rs.12900 per MT. Spot prices were down in all markets expect Nizamabad, where thr spot prices were up by 0.93% to Rs.11835 per MT. Prices in other markets were down, Davangere down by 1.16%to Rs.11416 per MT; Karimnagar down by 0.62% to Rs.12025 per MT and Sangli down by 2.48% to Rs.12000 per MT.

Pearl Millet (Bajra) prices were up this week by 0.3% to Rs.11086 per MT and was also higher than last year by 8.6%. Prices were lower than maize by 3.7%. Pearl Millet in some of the areas of Punjab, Haryana and Rajasthan is a grain to be used in poultry and dairy rations, but may not be used to replace 100% maize, which is the grain of choice and would remain so.

Sorghum (Jowar) prices were down 9.5% against last week to Rs.14738 per MT. Prices were also down against last year by 10.5%, but were higher than maize by 22% on the average. There are areas, where prices could be lower and close to maize especially in Maharasthra, parts of Andhra Pradesh and also Karnataka. The highest prices is gor the white variety of Sorghum which is used for food purposes, but still there is yellow sorghum which is priced right could be used in poultry and dairy rations in production centres.

Barley prices have shown an upward trend and moved up by 6.5% to Rs.13119 per MT on average. Prices were higher than last year by 22.8%. The April contract for barley closed at Rs.17055 per MT on April 20, 2012, up 4.44%. May was up 5.38% to Rs.17075 per MT; Jun up 4.58% to Rs.18040 per MT and Jul up 5.27%to Rs.18450 per MT, Aug contract was at Rs.18630 per MT. Barley in SPot market (Jaipur) was at Rs.15969 per MT, up 4.16% against last week. There is no apparent reason that the prices should be high as the new crop starts arriving in the market, but traders are of the opinion that while the crop may not be less, the arrivals are less, which is leading to higher prices. Also farmers are storing stocks at their end and bringing when they need the money.

This trend may not be limited to barley and is seen in all Agri commodities as farmers have the money and need not bring all the harvested crop to the market in one go, thus limiting the supplies and keeping the prices stable.

In the US the week started with a report on higher than average planting of corn (17% against 5% last year) which by the middle of the week had led the prices to tumble to a low of $236.03 per MT by the end of the day. In the day though the lowest was $235.97 per MT. Prices rebound and ended the week at $241.08 per Mt for may contract down 2.67%. Jul contract was down by 2.83% to $237.38 per MT and Sept down 1.87% to Rs.214.55 per MT.  The trade is of the opinion that the early planting could lead to higher productivity which would eventually lower the prices for the new crop. The Dec 2012 contract is at $211.24 per MT, way lower than anticipated.

The lower prices were reflected in the FOB prices, US gulf indicated at $267-264 per MT for the period may – July and at PNW indicated at $292-288 per MT for the same period. DDGS prices were also reported lower on FOB basis (US Gulf) $268-260 per MT for the period May – July and PNW (Rail Delivered) at $264 for may down to $250 for July. With soyprices at a high, it makes sense to feed DDGS, a source of quality protein and energy to all kind of animals (poultry, dairy, swine, fish etc). on CNF basis prices did show an increase due to higher freight costs. CNF Vietnam was indicated at $334-328 per Mt for the period May-July and CNF China at $323-320 per MT for the same period. Even corn gluten meal prices moved up to $597 per MT on FOB basis.

In 2012 ukraine stands out and is expected to produce 22.5 MMT of which 14 MMT is likely to be exported. This is the same production and export as Argentina. In 2010/11 it is estimated that Ukraine produced 11.92 MMT and the export was 5.01 MMT. Other game changers include South Africa which is 2010/11 produced 10.92 MMT and exported 2.40 MMT and in 2011/12 is likely to produce 11.5 MMT and export 2 MMT. Brazil is estimated to produce 62 MMT in 2011/12 against 57.4 MMT in 2010/11 and export 10 MMT in 2011/12 against 8.40 MMT in 2010/11. FSU-12 is estimated to produce 33.35 MMT and export 15.51 MMT in 2011/12 against a production of 18.49 MMT in 2010/11 and exports of 5.21 MMT. Argentina is expected to produce 22 MMT in 2011/12 and export 14 MMT, lower than 2010/11 exports of 16 MMT.

Barley sowing is progressing at a fast pace as per the USDA report 33% of the crop has been planted, against 12% the previous year. The cheapest price for malting barley 2R/6R was at Nez Perce / Craigmont at $170 per MT (delivered at the elevator) and the highest at Idaho Falls at $250-270 per MT. In Minneapolis, malting barley was quoted at $292 per MT on cash basis.

Freight rates are showing an upward trend and the benchmark USGulf-Japan was indicated at $53.5 per MT while PNW-Japan at $30 per MT higher by $0.5 – 1 per MT against last week. USGulf-China was indicated at $52 per MT and PNW-China at $28. Argentina/Brazil to China freight was also indicated to be higher to $44-49 per MT depending on the vessel size.  

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

Maize prices moved up in India on pan India basis y 0.9% to Rs.11484 per MT, 6.1% higher than last year. There have been some showers in parts of Bihar which traders say would not damage the crop, but may delay the arrival by another week or so. Prices showed an upward trend on some of the markets like Andhra Pradesh up by 3.48% to Rs.10937 per MT; Gujarat up by 2.25% to Rs.12746 per MT; Karnataka up by 2.38%to Rs.10950 per MT; Maharashtra up by 2.30% to Rs.12000 per MT and Tamil Nadu up by 6.49%to Rs.11836 per MT. Prices is some of the markets showed a slight decline Rajasthan down by 0.47% to Rs.12852 per Mt and Uttar Pradesh down by 1.70% to Rs.11783 per MT.

In the futures market, except of Davangere where the spot prices slid lower by 0.71% to 11550 per MT against last week, on other markets, prices showed an upward trend. Nizamabad up 0.96% to Rs.11725 per MT; Karimnagar up by 0.41% to Rs.12100 per MT and Sangli up by 0.56% to Rs.12306 per MT. Future prices though were down for the four contracts. Apr down 2.04% to Rs.11980 per MT; May down 1.82% to Rs.12350 per MT’ Jun down 1.85% to Rs.12720 per MR and Jul down 2.67%to Rs.13120 per MT. Aug contract was at Rs.13350 per MT.

In the US corn prices slid lower on the news WASDE report which suggests that in 2011/12 corn feed/residual use will be at 116.85 MMT same as last month. The report projects that in 2011/12 there will be more wheat feeding specially in summers due to larger expected supplies and competitive prices for wheat relative to corn. This would keep the ending stocks for corn for the 2011 crop at a same level of 20.35 MMT. With the corn sowing started at a rapid pace this year on more acres, there could be a substantial increase in new-crop corn use before the September 1 start of the new marketing year.

As the start of the week, may contract lost $4, closing at $255.49 and by mid week it was $250.37 and as the report came out the prices were down at $247.70 per Mt. The other two contracts also ended lower than last week. Jul at $244.31 per Mt, down 4.84 % and Sept down 2.42% to $218.64 per MT. This also resulted in lower FOB prices. US Gulf was indicated at $274-271 per MT for Apr – July and PNW indicated at $296-291 per MT for the same period. DDGS price son FOB basis also were down slightly with US guld indicated at $270-266 per MT and PNW at $284-280 for Apr – Jun delivery. CNF prices to Vietnam were indicated at $328-324 per MT and to China at $321 – 317 per MT.

In India, Pearl Millet prices have also moved up by 2.2% to Rs.11053 per MT, about 8.5% higher than last year, but 3.9% lower  than maize at the local markets. It does remain a grain for poultry use in parts of Haryana, but as freight rates increase, its use will be limited in far off areas, specially South India where low priced broken Rice will be available and will be used in layer rations (egg yolk will be be white, but it does not matter). In the last three weeks the egg prices in production centres have crashed. Hydrerabad down from $235 per 100 to Rs.200 per 100; Namakkal down from Rs.260 per 100 to Rs.215 per 100; Bangalore down from Rs.260 per 100 to Rs.220 per 100 and Vijaywada down from Rs.236 per 100 eggs to Rs.200 per 100 eggs. With the reduction in prices, farmers would tend to use alternate ingredients to bring down the cost of production.  

Sorghum prices have moved up by 7% at the market yard to Rs.16293 per MT, down 0.9% against last year but up 29.3% against maize.

Barley prices were also higher than last week by 1.8% to Rs.12321 per MT, up 20.6% against last year. Spot price in Jaipur was up by 7.2%to Rs.15331 per MT. The prices in the four contracts were up as well. Apr up 7.39%t o Rs.16330 per MT; May up 7.0% to Rs.16795 per MT; Jun up by 3.85% to Rs.17250 per MT and Jul up 3% to Rs.17525 per MT. Feed barley prices on FOB basis were indicated at $305, where malting barley in Minneapolis was indicated at $294 per MT.

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

Maize prices on average were down in India by 0.4% to Rs.11360 per MT, but were higher than last year by 11.2%. Prices in some of the key markets were up, specially in Andhra Pradesh, up by 0.65% to Rs.10520 per MT; Karnataka up by 0.22% to Rs.10695 per MT; Rajasthan up by 1.46% to Rs.12825 per MT; Tamil nadu up by 2.67% to Rs.11441 per MT and Uttar Pradesh up by 2.51% to Rs.12025 per MT. While arrivals have started in Bihar, they are yet to start in Uttar Pradesh for the Rabi maize and loose stock is available at Rs.12500 per MT in some of the markets in Uttar Pradesh. The average price of Maize in the month of Mar 2012 was Rs.11274 per MT, up 12.94% against Mar 2011 and also higher than Feb 2012 price by 1.06%.

The future price of maize on NCDEX for the four contracts was down. April down 0.48% to Rs.12320 per MT; May down 1.40% to Rs.12640 per MT; Jun down 1.22% t o Rs.12940 per MT and Jul down 1.84% to Rs.13300 per MT. However, spot prices in key markets were up. Nizamabad up 1.03% to Rs.11568 per MT; Davangere up 3% to Rs.11675 per MT; Karimnagar up 0.41% to Rs.12025 per MT and Sangli up 0.14%to Rs.12000 per MT.

Pearl Millet (Bajra) prices were  down 1.4% to Rs.10267 per MT, up 5.5% against last year and 10.6% lower than maize. Average price of Pearl Millet for the month of Mar 2012 was Rs.10530 per MT, 10.94% higher than Mar 2011 and 0.28% lower than the price in Feb 2012.

Sorghum (Jowar) prices on average pan India basis were down 6.4% to Rs.14058 per MT, also lower than last year by 4.7%. Prices are higher than maize by 19.2%. The average price of Sorghum for the month of Mar 2012 was Rs.15391 per MT, 9.8% higher than Mar 2011, but lower than Feb 2012 by 4.3%.

Barley prices on pan India basis were up by 1.1% to Rs.12023 per MT and also higher than last year by 6.3%. The average price of Barley for the month of Mar 2012 was Rs.11983 per MT, up 6.86% than Mar 2011 and 9.86% higher than Feb 2012. The average prices repoted in Haryana one of the key producer state for Barley was Rs.12000 per MT,w hile in Rajasthan the price was quoted at Rs.12275 per MT. Trader put the price at Rs.13000. 

On NCEC, barley prices have come down for the four contracts. Apr down 5.57% to Rs.15930 per MT; may down 4.07% to Rs.16355 per MT; Jun down 7.41% to Rs.16545 per MT and Jul down 5.02%to Rs.17000 per MT. Spot prices in Jaipur were reported at Rs.14500 per MT. In the US, feed barley on FOB basis was indicated at $305 per MT. Malting barley at origin was indicated at $182-270 per MT and in Minneapolis malting barley was indicated at $294 per MT. Per the USDA report, farmers are likely to plant barley on 3.33 mill hac of land, up 30% against last year.  

Corn prices at the start of the week were down slightly to $251 per MT for the May contracts and continued to slide lower ending at $237.78 on Thursday, Mar 29, 2012, prior to the planting report and quarterly stock report, following which the prices surged back to close of the last week’s close at $253.52 per MT, 0.37% lower than the last week;s close. Jul contract was down 0.18% to $253.21 per MT and Sep down 3.26% to $221.72 per MT.

The planting report released on Mar 30, 2012 indicated a 4% increase in corn acreage to 95.9 mill hac, highest since 1937. The corn stocks as onMar 01, 2012 were indicated at 152.654 MMT, lower than the anticipated 156.23 MMT, which helped the prices to surge back. Higher than expected acreage and a possibility of a record production in Oct 2012, that would replenish the stocks did not help settle the prices.     

There was no major change in the prices on FOB basis. Corn was indicated at $276-278 per MT for Apr-Jun delivery (US Gulf) and $299 per MT (PNW), slightly lower than last week. This would also mean a slightly lower CNF value for corn to the Asian buyers, which would be close to $329-330  from any of the two locations.

The benchmark freight rates did not change against last week. US Gulf-japan indicated at $51 per MT, PNW – japan at $29.5 per MT. USGulf – China at $49 per MT and PNW – China at $28 per MT. Argentina/Brazil to China was indicated at $41-47 per MT.

DDGS  prices at the start of the week did not change, but as the price of corn increased by the end of the week, the prices may show an increase next week for the new production. DDGS on FOB (US Gulf0 was indicated at $277-269 per MT for Apr-June, rail delivered to PNW was indicated at $282-278 per MT for the same period. CNF prices to Vietnam were indicated at $329-324 per MT, while to China were indicated at $322-319 per MT.

Egypt and Middle East has had a severe outbreak of Food and Mouth Disease (FMD) and the mortalities have been high. In Egypt some 4600 animals have already died and almost 40,000 are effected, as per a report from FAO. This has reduced the feed consumption drastically. The disease is caused by a new virus strain known as SAT2, and livestock have no immune protection against it. Foot-and-mouth disease affects all cloven-hoofed animals, including sheep, goats, cattle and buffalo.       

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

Maize prices at all India level have been stable in most parts ranging between Rs.10700 – 12300 per MT for most parts, averaging Rs.10900 per MT, down 1.8% against last week. Prices are higher than last week. The new crop – April harvest is almost ready and the first will reach the markets in Bihar by the last week of Mar 2012. Traders in Bihar put the crop at good quality and quantity. Prices in most markets are mixed, Andhra Pradesh down 1.29% at Rs.1030 per MT; Madhya Pradesh down 2.23% to Rs.11414 per MT and Maharashtra stable at Rs.11372 per MT. Prices were up in Gujarat by 2.03% to Rs.12910 per MT; Karnataka up by 0.39%to Rs.10742 per MT, Rajasthan up by 1.53% to Rs.12593 per MT, Tamil nadu up by 2.53% to Rs.11491 per MT and Uttar Pradesh up by 1.30%to Rs.11417 per MT. The average price of maize in Feb 2012 was Rs.11156 per MT, 17.78% higher than last year (Feb 2011) and also 1.91% higher than Jan 2012.

In the futures market all the four contracts were down. Mar down 2.25% to Rs.11260 per MT; Apr down 2.36% to Rs.11570 per MT; May down 1.15% to Rs.11960 per MT and Jun down 0.97% to Rs.12230 per MT. Jul contract opened at Rs.12230 per MT. While spot prices in Karimnagar were up by 1.03% to Rs.11720 per MT, prices in other markets were down. Davangere down 2.15% to Rs.11350 per MT and Sangli down 2.05% to Rs.11818 per MT.

In the US, prices on CBOT were down following the USDA report which suggested a bumper corn crop in US for 2012 season. Prices for the three contracts were down. Mar down 0.75%to $257.46 per MT; May down 1.52% to $253.92 per MT and Jul down 1.86% to $253.52 per MT. The lower prices were reflected in FOB prices, which were indicated at $283-280 (US Gulf) and $301-298 per MT (PNW) for the period Mar – July period. The freight has been more or less stable in these parts to Japan, China.

Sorghum prices in India were up slightly (0.6%) to Rs.15718 per MT, higher than last year by 14%. prices were also higher than maize by 30.5%. The average price of Sorghum for the month of Feb 2012 was Rs.16083 per MT, 19.24% higher than Feb 2011 and 2.87 % lower than Jan 2012.

Pearl Millet prices were up by 3.8% to Rs.11066 per MT this week. Prices were higher than last year by 17.3% and also higher than maize by 0.7%. The average pearl millet prices for Feb 2012 was Rs.10560 per MT, 14.07% higher than Feb 2011 prices and 1.77% higher than Jan 2012 prices.

Barley prices in the market in India were by by 7.5% to Rs.11777 per MT, prices were lower than last year by 2.6%. The average price for barley in Feb 2012 was Rs.10908 per MT; 10.89% lower than Feb 2011 prices and also 1.18% lower than Jan 2012 prices. Prices on NCDEX for the three contracts were up. Apr up 2.30% to Rs.15335 per MT, May up 2.64% to Rs.15510 per MT; Jun up 2.95% to Rs.15685 per MT. Spot prices in Jaipur were up 0.28% to Rs.12912 per MT.

DDGS prices in the US did not change much and FOB prices (US Gulf) were indicated at $273 per MT. Prices in PNW (Rail delivered) were indicated at $269 per MT. Prices CNF vietnam were indicated at $326 per MT, while delivered prices to China were indicated at $ 321 per MT.

The new report cites US to produce between 353 – 363 MMT of corn crop from 93.4 to 94 million hectares of land which will be the highest in history. Though all will depend on weather conditions. There are still issues with Argentina as the stevedores are on strike and deliveries could be an issue.

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