As the temperatures move up and Air quality deteriorates as higher temperature, sunshine, actually aid ‘Chemical Reactions’ and create a kind of “gas Soup” which combines with the particles, creating a smog of ground level ozone gas. This makes breathing difficult, especially for those who have respiratory ailments and also for Children and the elderly. While it may not be possible to reduce temperature, but it is possible to reduce the emissions from the cars, by using clean burning fuels and additives like ‘ethanol’, which is being used not only in the US, but also in Brazil, Philippines, Peru and many other nations. Based on the current price of Rs.39/litre ++ (EX sugar mill in India) and additional domestic transport, it is delivered to the a depot of Oil Marketing Company (OMC) at Rs.42/litre is mixed in gasoline, at 5-10% as and when available, it finds its way to the pump and finally the car. India’s demand of gasoline is about 28 billion litres, increasing at 8-10% per year and the demand of gasoline for E -10 blend (10% ethanol and 90% gasoline), would be 2.808 billion litres and the sugar industry has been able to offer 0.81 billion litres in the sugar year 106/17 (ends Oct 2017) which effectively would mean a blend for 2.88% if all gasoline gets blended with ethanol). In some states, it may be higher and is some ZERO as no offer has been received. The current price of US Ethanol is $620/MT and with duty paid it would cost Rs.32.44 per litre, With additional cost of Rs.5 to cover denaturing, transport etc it would cost Rs.37.44 (Max) per litre to the deport. A clean burning additive that is cheaper and the reduced prices can also be passed on to the consumer. Other nations have been using the clean burning alternative fuel, including ethanol for many years and it has proved to be not only an effective tool to mitigate Air Pollution, but saves money to the consumers by reducing the cost of gasoline and keep the engine clean.
Corn sowing has started in the US and about 6% corn has been sown. It be behind 5-year average, but is just the start and the planting will catch up. US prices were down this week in the range 3.14 – 3.81% on future prices as the market was under pressure due too developments in Brazil, the good weather which is making sure the corn gets planted. may corn was down 3.77% top $140.54/MT; Jul down 3.81%to $143.14/MT; Sept down 3.48% to $146.06/MT and Dec down 3.14% to $150.38/MT. Lower prices got reflected in the FOB prices and US corn was indicated at $156-159/MT (FOB US Gulf) and in the range of $170-174/MT (PNW). It is being quoted as delivered to China at $200/MT, Argentine corn is priced at $153-158/MT (FOB) and Brazilian at in the range of $156-162/MT, Its delivered price to China is about $207/MT. Similarly Black se corn at this time is being at $164-168/MT and may be quoting at $190/MT delivered to China (China is being consisted a point in the Asia region and trying to set a benchmark price around it for the Asian region)..
While some of the ethanol plants are closed for annual maintenance and that should make DDGS prices higher, but the prices have remained stable and DDGS is still priced at 92.3% of corn. It is still the cheapest source of protein (on per percent basis), which US SBM at $7.18 per percent protein and US DDGS at $ 5.14 per percent protein. The difference is also higher this week against last week. US DDGS is indicated $144/MT (FOB) for 28% protein and US SBM at $345/MT for 48% protein.
Maize harvest in India continues and stocks is arriving at the market yards, but the prices remain high. Prices in Bihar at Gulabbagh came down by 0.75% to Rs.13300/MT and delivered prices of corn from Bihar to SouthIndia quoted at Rs.15800-16200/MT. Prices in other locations including Jalgaon up 0.88% to Rs.14375/MT; Nizmabad up 2.18% to Rs.15225/MT; Davangere up 0.46% to Rs.16300/MT; Sangli up 0.48% to Rs.15600/MT. Future prices too have shown an upward trend May Rabi maize up 3.71% to Rs.13700/MT; Jun Rabi up 4.57% to Rs.14180/MT; July rabi up 4.03% to Rs.14470.MT and Aug Rabi up 3.86%t o Rs.14810/MT. This is up when the Rabi harvest has just started.
The benchmark freight rates showed a upward trend this week. Benchmark US Gulf-Japan indicated at $40.5/MT; PNW-Japan $22/MT; US Gulf-China $39.5/MT; PNW-China $21/MT; Argentina-Brazil to China ranged between $40.75-31.50/MT.
Amit Sachdev, USGC Representative for India, Bangladesh and Sri Lanka * E Mail: email@example.com