Sorghum in Poultry Diets

ZERO tannin sorghum can be used in Poultry diets, without effecting the efficiency of production. Low tannin sorghum is normally traded in the US as 95-98% the value of corn. In India, current price of sorghum is is 30% higher than corn (maize). There is ample data now available to use sorghum in conjunction with corn. A detailed brochure from Sorghum Checkoff can be downloaded using the link below

Use of Sorghum in Poultry Diets

Should you need additional information, please feel free to contact me.

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

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Maize price down in India, but move up in US; Planting progresses well

Maize prices were down by 2.2% on an average at the market yard this week. Average price was Rs.10525 per MT, and were higher than last year by 12.6%. As arrivals gather pace in Bihar, prices have slumped to Rs.10200 per MT at the market yard. Prices in other key states are also down, thus reducing the burden on the end users (poultry and starch manufacturers) at least for some time. Prices in Andhra Pdaesh down by 5.74% to Rs.9538 per MT; maharashtra down by 4.8% to Rs.11110 per MT; Tamil Nadu down by 4.14% to Rs.11134 per MT and prices in Uttar Pradesh down by 0.3% to Rs.10931 per Mt. However prices in some other states have move higher, like in Gujarat prices were up bu 0.82% 11018 per MT, karnataka up by 1.60% to Rs.11634 per MT and Rajasthan up by 1.23% to Rs.11361 per MT.

While prices on NCDEX were up slightly, spot prices in the key market were down. June contract was up by 0.65% to Rs.12360 per MT; July up by 0.55% to Rs.12750 per MT; Aug up by 0.81% to Rs.13065 per MT; Sept up by 2.69% to Rs.13350 per MT. However, prices in Nizamabad were down by 7.95% to Rs.11084 per MT; Davangere down by 0.81% to Rs.12166 per MT and Karimnagar down by 8.03% to Rs.11312 per MT.

Pearl Millet prices were down by 0.7% to Rs.9992 per MT, however prices are higher than last year by 5.8%. Prices are lower than maize by 5.3%.

Sorghum prices corrected and were reported down by 11.9% against last week to Rs.15030 per Mt. Prices are still higher than last year by 21.9% and about 30% higher than maize.

Barley prices in the open market at market yard were up by 2.7% to Rs.12106 per MT and higher than last year by 28.3%. ON NCDEX for the two contracts, prices were down slightly. Jun contract down by 1.16% to Rs.14730 per MT; July down by 0.6% to Rs.14950 per MT and  Aug contract closed at Rs.15492. In the spot market at Jaipur, prices were up by 1.5% to Rs.14490 per MT.

On CBOT, corn prices were up on concerns of rainy weather, slow planting progress in the US and lower than expected yields due to delayed planting. For the three contracts, prices were up. Jul up by 11.34% to $298.95 per MT; Sept up by 9.76% to $282.42 per MT and Dec contract up by 6.28% to $262.34 per MT. On FOB basis (US Gulf), corn prices was indicated at $325-326 per MT and in PNW indicated at $348 per MT. Wish such high prices, India could get more business for the crop harvested in Bihar and Andhra Pradesh. In addition, other corn producer countries could significantly gain. Almost 63% corn has been planted in US, sorghum 34% and Barley 43%.

Prices on DDGS on FOB basis (US Gulf) gained on higher corn prices and were indicated at $268-272 per MT for May – july period. CNF prices for Vietnam were indicated at $207-308 per MT and for China at $298-299 per MT for the same period. Even at this price, DDGS is a good buy to be used as a protein and energy source in dairy and poultry rations.

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

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Prices stable in India and the US; Higher production expected; USGC Presentation uploaded

Maize prices in India were stable this week at Rs.10761 at the market yard, but the prices were higher than last year by 16%. Correction was seen in some of the key markets Andhra Pradesh, where prices were down by 2.87% to Rs.10119 per MT and also in Uttar Pradesh where prices were down by 1.15% to Rs.10964 per MT. In Bihar as the arrivals hit the market, prices have been down and were indicated at Rs.10400/10600 per MT at the market yard. Packed loaded stocks were indicate at Rs.11200 – 11500 per MT depending on the stations, indicated a price correction. However, prices were indicated higher in Gujarat up 2.17% to Rs.10928 per MT; Karnataka up 2.38% to Rs.11450 per MT; Maharashtra up 1.22% to 11277 MT; Rajasthan up 0.79%to Rs.11223 per MT and Tamil nadu up 2.48% to Rs.11614 per MT.

Prices were reported lower on NCDEX on the close of the week. For the four contracts under consideration, prices were down in the range of 1 – 3.6%. May down 3.6% to Rs.11980 per MT; Jun down 2.57% to Rs.12280 per MT; July down 1.36% to Rs.12680 per MT; Aug down 1.% to Rs.12960 per MT and sept closed at Rs.13000 per MT. In the key spot markets as well, priceswere down. Nizamabad down 4.62% to Rs.12042 per MT; Davangere down 0.48% to Rs.12266 per MT and Karimnagar down 2.99% to Rs.12300 per MT.

Pearl Millet prices corrected on higher supplies in the market and were down by 3.5% to Rs.10067 per MT. Prices were also lower than last year by 2.7% and also lower than maize by 6.9%. In the last couple of years, prices of pearl millet has remained close to maize, but lower than maize, making it an alternate grain of choice for the poultry farmers, specially at times when the prices of maize move up.

Sorghum prices moved up by 8.6% to Rs.17057 per MT and were higher than last year by 20.2% and also higher than maize by 36.9%. Over the last five years, sorghum prices on average have remained higher than maize. The production has been going down in India. In the US, tannin free sorghum sells at 95 – 98% of the price of corn, making it a 100% replacement for corn. Areas in US where sorghum is grown, poultry end users try to use the grains. Other countries which are moving towards using sorghum as an ingredient in feed for poultry and dairy rations include Mexico, Saudi Arabia, Egypt, Morocco and results have established that the grain can be used without lowering the efficiency of production.

Barley prices in India moved up by 0.4% to Rs.11790 per MT and are higher than last year by 25.7%. Prices were indicated to have moved up on NCDEX. May contract up 1.13% to Rs.14624 per MT; Jun up 1.03% to Rs.14904 per MT; Jul up 0.13% to Rs.15040 per MT. In the spot market at Jaipur, barley was indicated at Rs.14276 per MT, up 0.48% against last week.

On CBOT, corn prices move lower slightly. May down 0.52% to $267.31 per MT; Jul down 0.61% to $268.49%; Sept down 2.18% to 257.31 per MT and Dec down 2.59% to $246.84%.  USDA estimated that ending stock would actually increase to 18.54 MMT, due primarily to reduced exports. This implies that there are 1.75 MMT more corn available between now and August 31. Due to delayed planting, USDA forecasted a conservative yield of 4 MT/acre corn yield for 2011/12 harvest (next season’s final ending stocks are estimated to be 22.86 MMT). Corn production is expected at 343 MMT. Current planting for corn is progressing at a slightly slower pace and 40% area under corn is planted, which is lower than last year’s 80%, but equal to the last five year’s average of 40%.

On FOB basis specially on for Gulf prices were indicated as stable at $294/297 per MT. FOB PNW, prices were indicated lower at $314/310 per MT for the period May – Jul 2011 delivery. DDGS prices were down last week on on FOB basis (US Gulf), prices were down by almost $10 per MT to $251/252 per MT. CNF prices for Vietnam were indicated at $303/304 per Mt while for China prices were indicated at $293 per MT. The competitive DDGS prices make it an excellent buy and a source of protein and energy for poultry and dairy rations. Over the next couple of months as sourcing corn will be difficult from US, there are many countries who will depend on DDGS to feed their poultry and dairy sectors. Even in the US the demand for DDGS is expected to remain strong.

Argentina had decided to allow an additional 2.5 MMT of corn to be exported in the current 2010/11 marketing year for a total, making a total of 11 MMT. This is still lower than the earlier estimates of 14.5 MMT made by USDA.

USGC in collaboration with CII and FICCI held a series of brain storming sessions. The presentation made during the discussions can be seen and downloaded using the link below.

Agriculture Dev through Trade – May 2011 presenation in India

Should there be any questions, please feel free to contact me.

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

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Maize prices down in India and the US; Planting is slow in US, but likely to pickup

Maize prices were stable and down in most states. Average pan India price was Rs.10761 per MT. Prices are however, higher than last year 14.6%. Prices in all production states though have come down. Andhra Pradesh down by 0.78% to RS.10418 per MT; Gujarat down by 4.44% to Rs.10695 per MT; Maharashtra down by 2.52% to RS.11141 per MT; Rajasthan down by 1113 per MT and Tamil Nadu down by 2.48% tp Rs.11332 per MT. Prices in Karnataka and Uttar Pradesh were up by 0.24% and 1.33% to Rs.11183 per MT and Rs.1192 per MT respectively.

On the reports of normal monsoon in 2011/12 and higher deliveries in Bihar, maize prices have corrected. Prices in Bihar are now at Rs.10500- 10750 per MT. Loaded cargoes are being sold at Rs.11400 – 11500 per MT from Bihar.

Futures as well as Spot prices were down for maize on NCDEX. may down 1.5% to Rs.12430 per MT; Jun down by 2.88% to Rs.12605 per MT; Jul down by 4.06% to Rs.12855 per MT and Aug down 5.03% to Rs.13105 per MT. Spot prices in Nizamabad down by 2.08% and down by 1.19% in Karimnagar at Rs.12680 per MT. Prices were stable at Rs.12207 per MT in Davangere.

Pearl Millet prices were up by 2.5% to Rs.10450, Prices were higher than last year by 4.5 and lower than maize by 3.2% at the market yard, making it a good grain choice for poultry/cattle feed in production areas (Haryana/Uttar Pradesh/Rajasthan).

Sorghum prices were up by 9.2% to Rs.15707 per MT, prices were higher than last year by 22.6% and 31.6% higher than maize.

Barley prices were up 8.6% to Rs.11748 per MT at the market yard, prices are higher than last year by 24.6%. On NCDEX, Barley prices were up. May up by 1.6% to Rs.14460 per MT; Jun up by 0.55% to Rs.14752 per MT; Jul up by 1.41% to Rs.15060 per MT. Prices in Jaipur were up by 8.54% to Rs.14208 per MT.

The prices of CBOT tumbled this week in anticipation of better plantings next week. May delivery was down 9.47% to $268.72 per MT; Jul down 9.33%to $270.14 per MT; Sept down 6.67%to $263.05 per Mt, Dec closed at $252.03 per MT. FOB prices were also down correspondingly. Prices at US Gulf were indicated at $294-296 per MT and for PNW were indicated at $319-317 per MT for the period May-Jul.

Decline in prices reflect forecasts for drier weather conditions and a decline in crude prices. The planting was complete in 13% area against 66% last year, The five year average for corn planting by this time is 40%. Sorghum planting is complete in 23% against 29% last year, while barley sowing is complete in 18% against 51% last year. By third week of may, 2011, 75% planting should have been complete, but for flooding and heavy rains in the corn belt, planting is delayed.

DDGS prices on FOB basis were stable, but the market is undecided due to the downtrend in corn market. FOB prices (US Gulf) were indicated at $263-264 per MT. Prices for Vietnam were indicated at $315-320 per MT for May-July and for China at $302-303 per MT for the same period.

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

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Maize prices stable in India; Planting slow in the US

Maize prices at the market yard are up again this week, though not substantially. An increase of 0.3% to Rs.10677 per MT, prices are higher than last year by 15%/ The average price for April 2011 was Rs.10676 per Mt, about 17.72% higher than April 2010 and 6.95% higher than Mar 2011. While in prices in producing and consuming states did go up, they are down in some states. Price sin Ahdhra Pradesh were up by 1.27% to Rs.10500 per MT; Gujarat up by 0.81%to Rs.11192 per MT; Karnataka up by 0.42% to Rs.11156 per MT and Uttar Pradesh up by 4.87% to Rs.10946 per MT. Price sin Maharashtra were down by 4.2%to Rs.11430 per MT; Rajasthan down by 0.29% t o Rs.11383 per MT and Tamil nadu stable at Rs.11621 per MT.

On NCDEX, while the future prices declines, spot prices were up in the key markets this week. May delivery down 5.11% ro Rs.12620 per MT; Jun down 4.55% to Rs.12980 per MT; Jul down 3.38% to Rs.13400 per MT; Aug down 2.61% to Rs.13800 per MT. Spot prices in Nizamabad were up to Rs.12895 per MT; Davangere up by 1.21% to Rs.12212 per MT and Karimnagar up by 0.41% to Rs.12833 per MT.

There are reports suggesting farmers in west and and some parts of south India wanting to shift to Bt Cotton. This could be at the cost of maize and in some cases some oilseeds in some areas may be displaced. Current demand of corn for 2011/12 is expected to be 20 MMT, adding almost 7% to the 2010/11 demand, gainer to be poultry to require almost 9.15 MMT against 8.31 MMT in 2010/11. Part of this requirement in 2011/12 will need to be fulfilled by the present production in 2010/11. There is also likelyhood that the demand for maize as direct food may be down as wheat is cheaper than maize and may be replaced and maize grain may be out in the market.

Poultry, specially broiler farming becomes a losing proposition for many in summers as the prices plummet, due to slowdown in demand, the cost of production is higher, due to higher input costs and also higher mortality due to higher temperatures especially in the northern areas. With high price of maize the cost of production is close to Rs.52 per kg and there are areas where broiler prices have  come down to Rs.46-48 per kg (live). In many cases the lower price is not reflected in the retail markets.

Pearl Millet prices were up by 0.4% this week in the key producing states in North India to Rs.10177 per MT. Prices are also higher than last year by 6.3%. Prices are lower than maize by 4.9%. Average price of Pearl Millet in April 2011 was Rs.9974 per MT, 1.41% higher than April 2010 prices and 5.08% higher than Mar 2011 price. There is a higher demand for the commodity as a lower price grain that can replace high prices maize in high p rices poultry and dairy rations.

Sorghum prices were down this week by 11.7% to Rs.14738 per MT, however the prices are higher than last year by 17.8%. Prices are higher than maize by 25.7%. Average price of sorghum in April 2011 was Rs.15740 per MT, 28.93% higher than April 201o and 12.92% higher than Mar 2011 prices.

Barley prices were up in production centers by 6.7% to Rs.10814 per MT, higher than last year by 15.4%. The average price of Barley for April 2011 was Rs.10065 per MT, 16.35 percent higher than April 2010 but 10.24% lower than Mar 2011 prices.

On CBOT, corn prices were up slightly this week. May delivery up 2.28% ($6.62 per MT) to $.296.83 per MT; Jun delivery up 1.61% ($4.72 per MT) to $297.77 per MT; Sept delivery up 1.67% ($4.65 per MT) to $281.87 per MT. The higher prices were also reflected in the FOB prices. FOB (US Gulf) were indicated at $322-325 per MT for the period May – Jul and for the same period FOB (PNW) were indicated at $348-345 per MT. In the middle of the week, prices were down as the forecast was for better weather conditions, that would help corn planting, but by the end of the week, it was clear that the forecast may not be correct. Currently only 9% planting for corn is complete against last five year’s average of 23% (2006-10) and last year 46% of the corn was planted by this time of the year.

Last week’s tornadoes that hit Southeastern US have left almost 340 people dead and could effect some corn demand in the the US.  The poultry sector in Alabama has been hit severely and almost 5 million chickens are reported to have been killed (25% of the poultry houses effected).

DDGS prices were up slightly this week  on FOB basis at $265-266 per MT. CNF prices to Vietnam are up to $320/323 for the period May – July and to China prices were up to $307-308 per MT.

Freight rates for the benchmark US Gulf-Japan were stable at $51 per MT while the PNW-Japan benchmark was up by $2 to $30 per MT. Freight rate for Argentina/Brazil to China was also up by $50-52 per MT.

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

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Maize prices remain strong; Other coarse cereals follow

Maize prices at the market yard on an average were down this week by 1.3% to Rs.10645 per MT, however prices were up against last year at the the same time by 14.8%. While prices in Andhra Pradesh and Karnataka were down by 0.29% and 1% to Rs.10368 and Rs.11109 per MT respectively, prices in other states were up. Gujarat up by 1.93%to Rs.11101 per MT; Maharashtra up by 5.93% to Rs.11942 per MT; Rajasthan uo by 2.23% to Rs.11417 per MT; Uttar Pradesh up by 1.02% to Rs.10437 per MT and Tamil Nadu at Rs.11631 per MT.

Though prices were up for May delivery on NCDEX by 0.91% to Rs.13300 per MT, for the three contracts prices were down. Jun down by 0.22% to Rs.13600 per MT; Jul down 0.35% to Rs.13870 per MT; Aug down 0.21% to Rs.14170 per MT. Spot prices in Nizamabad and Karmnagar were up by 3.1% and 1.09% to Rs.12888 per MT and 12780 per MT respectively, while the prices were down in Davangere by 1.42% to Rs.12066 per MT.

Pearl Millet prices were up by 0.2% to Rs.10135 per MT on average and were higher than last year by 5.8%. However, prices wered own by 5% against maize. Reports indicate that the use of maize in layer as well as broiler rations in North as well as South India is increasing and farmers are depending on North India (Haryana, Rajasthan) to fulfill the requirements of Pearl Millet.

Sorghum prices were also down by 0.9% against last week bto Rs.16283 per MT and is also higher than last year by 28.2% and higher than maize by 34.6%. Sorghum has also found use as a novel food in diets and foods in some areas and increase in demand and a short supply is causing the prices to be higher.

Barley prices moved up against last week by 3.5% to Rs.10132 per MT and were also higher than last year by 12.3%. Prices were also up on NCDEX. May delivery up 7.6% to Rs.13352 per MT; Jun up 7.32% to Rs.13780 per MT and Jul up 10.23% to Rs.14000 per MT. Spot price at Jaipur was up by 10.94% to Rs.12507 per MT.

Interestingly, wheat prices in some of the markets are lower than maize prices (delivered). Eg in Gujarat, Wheat could be purchased at Rs.12,000 per MT, while maize is being delivered at Rs.13500 – 14000 per MT.

Corn prices on CBOT  were down slightly for the two contracts. May down 0.65% to $290.21 per MT; Ju down 0.67% to $293.05 per MT. Sept contract was up by 3.78% to $277.22 per MT. It is interesting to see that the spread between corn and Wheat and Corn on CBOT for may is only $3.34 per MT, wheat being expensive. Within the week, there was a time , when weeat was quoted at the same price as corn. Planting of corn has already started in the US and is somewaht delayed. Currently only 7% of the land is planted with corn, against 17% last year. Sorghum planting is at 21%, against 20% of last year and Barley has been planted on 11% land, against 19% last year.

The lower prices reflect on the FOB prices as well, and FOB (GULF) prices were indicated at $314-320 per MT while FOB (PNW) were indicated at $341-342 per MT for April-July period. DDGS  prices also were down slightly, due to lower corn prices and were indicated at $256-262 on FOB (US Gulf) basis for the period Apr – Jun. On CNF basis, DDGS prices were indicated at $ 308-309 (Vietnam) and $300-303 (China) for the same period.

Reports indicate that the export tax on corn in Argentina is 20% and there is a move to get is reduced to 10% and finally to ZERO, so as farmers can benefit from the world prices. Also, there are reports that the prices of corn in South Africa were down as a result of prices being down in Chicago. On the South African Commodity Exchange (SAFEX), while corn was indicated at $248.83 per Mt for July and Yellow corn was indicated at $256.28 per MT. The production of corn in South Africa is estimated at 10.883 MMT.

Freight rates were indicated lower this week. The benchmark rate US Gulf-Japan was down by $1 to $51 per MT and PNW-Japan down $2 per Mt to $28 per MT. Argentina/Brazil to China freight rates were also down to $48-49 per MT.

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

 

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Maize prices remain strong; other coarse cereals follow

Maize prices at the market yard on an average were down this week by 1.3% to Rs.10645 per MT, however prices were up against last year at the the same time by 14.8%. While prices in Andhra Pradesh and Karnataka were down by 0.29% and 1% to Rs.10368 and Rs.11109 per MT respectively, prices in other states were up. Gujarat up by 1.93%to Rs.11101 per MT; Maharashtra up by 5.93% to Rs.11942 per MT; Rajasthan uo by 2.23% to Rs.11417 per MT; Uttar Pradesh up by 1.02% to Rs.10437 per MT and Tamil Nadu at Rs.11631 per MT.

Though prices were up for May delivery on NCDEX by 0.91% to Rs.13300 per MT, for the three contracts prices were down. Jun down by 0.22% to Rs.13600 per MT; Jul down 0.35% to Rs.13870 per MT; Aug down 0.21% to Rs.14170 per MT. Spot prices in Nizamabad and Karmnagar were up by 3.1% and 1.09% to Rs.12888 per MT and 12780 per MT respectively, while the prices were down in Davangere by 1.42% to Rs.12066 per MT.

Pearl Millet prices were up by 0.2% to Rs.10135 per MT on average and were higher than last year by 5.8%. However, prices wered own by 5% against maize. Reports indicate that the use of maize in layer as well as broiler rations in North as well as South India is increasing and farmers are depending on North India (Haryana, Rajasthan) to fulfill the requirements of Pearl Millet.

Sorghum prices were also down by 0.9% against last week bto Rs.16283 per MT and is also higher than last year by 28.2% and higher than maize by 34.6%. Sorghum has also found use as a novel food in diets and foods in some areas and increase in demand and a short supply is causing the prices to be higher.

Barley prices moved up against last week by 3.5% to Rs.10132 per MT and were also higher than last year by 12.3%. Prices were also up on NCDEX. May delivery up 7.6% to Rs.13352 per MT; Jun up 7.32% to Rs.13780 per MT and Jul up 10.23% to Rs.14000 per MT. Spot price at Jaipur was up by 10.94% to Rs.12507 per MT.

Interestingly, wheat prices in some of the markets are lower than maize prices (delivered). Eg in Gujarat, Wheat could be purchased at Rs.12,000 per MT, while maize is being delivered at Rs.13500 – 14000 per MT.

Corn prices on CBOT  were down slightly for the two contracts. May down 0.65% to $290.21 per MT; Ju down 0.67% to $293.05 per MT. Sept contract was up by 3.78% to $277.22 per MT. It is interesting to see that the spread between corn and Wheat and Corn on CBOT for may is only $3.34 per MT, wheat being expensive. Within the week, there was a time , when weeat was quoted at the same price as corn. Planting of corn has already started in the US and is somewaht delayed. Currently only 7% of the land is planted with corn, against 17% last year. Sorghum planting is at 21%, against 20% of last year and Barley has been planted on 11% land, against 19% last year.

The lower prices reflect on the FOB prices as well, and FOB (GULF) prices were indicated at $314-320 per MT while FOB (PNW) were indicated at $341-342 per MT for April-July period. DDGS  prices also were down slightly, due to lower corn prices and were indicated at $256-262 on FOB (US Gulf) basis for the period Apr – Jun. On CNF basis, DDGS prices were indicated at $ 308-309 (Vietnam) and $300-303 (China) for the same period.

Reports indicate that the export tax on corn in Argentina is 20% and there is a move to get is reduced to 10% and finally to ZERO, so as farmers can benefit from the world prices. Also, there are reports that the prices of corn in South Africa were down as a result of prices being down in Chicago. On the South African Commodity Exchange (SAFEX), while corn was indicated at $248.83 per Mt for July and Yellow corn was indicated at $256.28 per MT. The production of corn in South Africa is estimated at 10.883 MMT.

Freight rates were indicated lower this week. The benchmark rate US Gulf-Japan was down by $1 to $51 per MT and PNW-Japan down $2 per Mt to $28 per MT. Argentina/Brazil to China freight rates were also down to $48-49 per MT.

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

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Maize prices rule strong; cost of production of meat, milk and eggs to go up

Maize prices on the market yard were up by 1.7% to Rs.10783 per MT. Prices are higher than last year by 14.1%. While prices in Uttar Pradesh saw a decline of 5.5% this week to Rs.10331 per MT, prices in all other states were up. Andhra Pradesh up by 1.33% to Rs.10399 per MT; Gujarat up by 0.49% to Rs.10891 per MT; Maharashtra up by 5.20% to Rs.11273 per MT; Karnataka up by 2.62% to Rs.11223 per MT ad Rajasthan up by 1.86% to Rs.11167 per MT. Reports indicate that prices in Bihar are down as mire stocks hit the market. Spot prices in Nizamabad the key market were up at Rs.12800 per MT.

On NCDEX, maize prices were a mixed bag. While the future prices showed a down trend, the spot prices in ket markets were up. Apr down 4.86% to Rs.12310 per MT; May down 1.86% to Rs.13180 per MT; Jul down 0.14% to Rs.13920 per MT, Jun was stable at 13630 per MT. Aug delivery was quoted at Rs.14200 per MT. In the key market, spot prices were up. Nizamabad Rs.12500 up 1.53%; Davangere up 0.74% to Rs.12240 per MT and Karimnagar up 2.98% to Rs.12641 per MT.

Pearl Millet prices were up 6.8% on demand from poultry sector at Rs.10112 per mT. Prices are higher than last are by 3.2%, down lower than maize by 6.6%. Delivered prices in North India are close to Rs.10500 per MT against maize which is available to poultry end users at Rs.14000 per MT, a clear differential of about 25%, making its a good buy and an alternate to maize in poultry rations.

Sorghum prices were up by 3.6% to Rs.16433 per MT. Prices are higher than last year by 25.4% and also higher than maize by 34.4%.

Barley prices were up by 2.7% to Rs.9786 per MT. Prices are higher than last year by 13.5%. On NCDEX, a mixed bag for barley prices. Apr delivery down 2.69% to Rs.11550 per MT, while may and Jun up by 1.12% and 0.59% to Rs.12400 per mT and 12770 per MT respectively. Jul contract was Rs.12700 per MT. Spot prices in Jaipur was indicated at Rs.11273 per MT, up 3.11% against last week.

Food inflation continues to be a problem in India at still is close to 8.28% for week ending Apr 2, 2011. Wholesale Prices Index (WPI) based inflation for Mar was 8.98% and for Jan was revised to 9.35%. Maize prices moved up in most of the markets, even though the 3rd advance estimates put the maize production at 20.23 MMT. The feed prices are also up at Rs.19,500 per MT, indicating that the cost of production of chicken, eggs and milk will be up a notch. As summer grips the nation and productivity takes a hit, cost of production will be higher. The 3rd estimate also indicate a higher production for Soy, 12.58 MMT, up from last year’s 9.96 MMT. Soybean meal prices may have come down by Rs.100 per MT, but have remained in the range of Rs.17900 – 18100 per MT (Ex-Factory).

Corn prices on CBOT were down significantly. May delivery down 3.38% to $292.11 per MT; Jul down 3.17%to $295.02 per MT and Sept down 1.35% to $276.12 per MT. FOB prices were indicated lower than last week down almost $10. Prices on FOB US Gulf were indicated in the range of $317-323 per MT for the period Apr-Jul, while for PNW were indicated at $343-344 per MT. The freight rates to Japan from US Gulf and PNW remained unchanged at $52 and $30 respectively.

DDGS prices are supported by the higher corn prices in the world market. The FOB prices for DDGS is at 82-83% of the corn price, ranging from $261-268 per Mt for Apr-Jun delivery. CNF prices to Vietnam were indicated at $313/314 per MT, while to China were indicated at $309 per MT.

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

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Maize prices move up globally, India is no exception; Global use of corn is expected to be higher

Maize prices moved up this week by 5.1% to Rs.10598 per MT. Prices are higher than last year by 16.4%. While prices in the state of Gujarat and Tamil Nadu were down by 0.45% to Rs.10838 per Mt and 4.06% to Rs.10460 per MT respectively, prices in other states moved up significantly. Prices in Andhra Pradesh were up by 6.86% to Rs.10292 per MT; Karnataka up by 4.36% to Rs.10936 per MT; Maharashtra up by 8.61% to Rs.10715 per MT, Rajasthan up by 1.53% to Rs.10963 per MT and Uttar Pradesh up by 10933 per MT.

On NCDEX, maize prices were up correspondingly in the range of 3 – 6% for the four contracts. Apr up 3.10% to Rs.12940 per MT; May up 5.74% to Rs.13430 per MT; Jun up 5.25% to Rs.13630 per MT and JUly up 6% to Rs.13940 per MT. Spot prices in key markets were also up. Nizamabad up 3.11% to Rs.12311 per MT; Davangere up 6.11% to Rs.12150 per MT and Karimnagar up 2.63% to Rs.12275 per MT.

Pearl Millet (Bajra) prices were down by 2.4% to Rs.9471 per MT. Prices are also lower than last year by 10.6% and 11.6% lower than maize, making it an ideal choice to replace maize in layer and broiler diets in most of the poultry production areas.

Sorghum (Jowar) prices were up by 7.8% this week to 15875 per MT. Prices are higher than last year by 22.8% and also higher than maize by 33.2%.

Barley prices were down 15.5% this week to Rs.9526 per MT on pan India average basis.  However, prices are higher than last year by 14.9%. On NCDEX, prices of barley were up in the range of 5-8% for the three contracts. Apr up 5.25% to Rs.11870 per MT; May up 6.44% to Rs.12262 per MT and Jun up 7.55% to Rs.12694 per MT. Spot prices at Jaipur were also up by 1.86% to Rs.10933 per MT.

Corn prices on CBOT, moved up significantly again by the end of the week even as the WASDE report raised the global corn production by 1.16 MMT in 2010/11. The increases have come from Brazil (2 MMT to 55 MMT), Uganda (0.5 MMT) and Paraguay (0.4 MMT). On the other side, production has been reduced for SEA region by 1.16 MMt to 23.35 MMT and also in Egypt by 0.5 MMt to 6.5 MMT. Indonesia is expected to be in the market to purchase 0.9 MMT of corn and China is expected to purchase 0.5 MMT. Overall the global use of corn is expected to be higher by 3.14 MMT to 838.32 MMT, which is likely to bring down the global ending stocks by 0.71 MMT to 122.43 MMT. In the US, the feed and residual use of corn is expected to be down by 1.27 MMT to 130.82 MMT and corn use in ethanol is expected to be up by the same amount to 127 MMT. The stock to use ratio is at 5% possibly the lowest. in 2009/10 the stock to use ration was 13%.

Prices on CBOT were up for the three contracts. Apr up 4.34% to $302.34 per MT; Jun up 4.17% To $304.70 per MT and Sept up 4.34% to $279.90 per MT. Correspondingly the price of corn on FOB basis was also up. Price on FOB (US Gulf) were indicated at $327-324 per Mt for the period Apr – Jul and on FOB (PNW) were indicated at $354 per MT for the same period.

Price of DDGS is also up and it is still has a good value as a feed ingredient. On FOB basis DDGS is priced at 80% the price of corn at $261-263 per MT. CNF price for Vietnam were indicated at $330-334 per MT for the period Apr-Jun and for China were indicated at $322-323 per MT. There is a good domestic demand for DDGS in the US.

Freight rates were down again this week. Benchmark US Gulf-Japan freight was down $6 per Mt to $52 per MT and PNW-japan down $5 per Mt to $30 per MT. Argentina/Brazil to China freight was also down to $50-51 per MT due to oversupply of vessels.

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

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Maize prices remain up in Indian states; Corn prices in US jump even as farmers intend to plant more acres

While the price on pan India basis may have come down by 0.3% to Rs.10083 per MT, price is most of the states showed an uptrend. Prices were higher than last year by 10.2% at this time of the year. The average price of maize in Mar 2011 was Rs.9982 per MT, 10.75% higher than Mar 2010 and 5.39% higher than Feb 2011. While prices showed a down trend in Andhra Pradesh by 1.2% to Rs.9603 per MT; Karnataka down by 0.9% to Rs.10479 per MT and also Maharashtra down by 7.4% to Rs.9865 per MT. Prices were indicated higher in Gujarat by 7.37% to Rs.10887 per MT; up in Rajasthan by 2.44% to Rs.10797 per MT; up in Tamil Nadu by 1.70% to Rs.10903 per MT and also in Uttar Pradesh by 0.80% to Rs.10439 per MT.

On NCDEX as well prices were for all the four contracts. Apr up 2.7% to Rs.12550 per MT; May up 1.68% to Rs.12700 per MT; Jun up 1.72% to Rs.12950 per MT and Jul up 1.50% to Rs.13150 per MT. Spot prices in ket markets were also indicated higher. Prices in Nizamabad were indicated at Rs.11939 per MT, up 0.37%; Davangere up by 1.23% to Rs.11450 per MT and Karimnagar up 1.87% to Rs.11450 per MT.

Pearl Millet prices were higher this week by 3.4% to Rs.9702 per MT. Prices were higher than last year by 3.5%, but lower than maize by 3.9%. The average price of Pearl Millet in Mar 2011 was Rs.9491 per MT, lower than Mar 2010 by 2.715, but higher than Feb 2011 by 2.97%.

Sorghum prices were up by 4.8% this week on pan India (average) to Rs.14719 per MT. Prices are higher than last year by 19% and higher than maize by 31.5%. The average price of sorghum for Mar 2011 was Rs.14017 per MT, 22.47% higher than Mar 2010 prices and also 3.92% higher than Feb 2011 prices.

New stock arrivals are small and the prices were up against last week by 16.6% to Rs.11267 per MT. Prices are higher than last year by 26.9%. The average price of Barley for Mar 2011 was Rs.11214 per MT, 31.78% higher than Mar 2010, but lower than Feb 2011 prices by 8.39%.

On NCDEX, the three contracts were down. Apr down by 1.05% to Rs.11280 per MT; may down 1.87% to Rs.11520 per MT and Jun down by 2.33%to Rs.11798 per MT. Spot price at Jaipur was indicated at Rs.10704 per MT, down 2.79%.

On CBOT, corn prices shot up on Friday close adding more than 6% to the rally. May contract closed at $289.74 per MT, up 6.75%; Jul contract up 6.84% to $292.50 per MT and Sept contract up 5.71% to $268.25 per MT. While the US farmers made planting intentions clear and report that the area under corn in 2011 will be up by 4.5% to 92.178 mill hac, it did not bring the prices down. The USDA report on the quarterly stocks reported corn stocks on Mar 1, 2011 to be historically low at 165.68 MMT against 195.42 MMT on Mar 1, 2010, helped the prices to go up.

Increased CBOT value did add to the FOb value of corn, which on US Gulf was indicated at $315-321 per MT for Apr-Jul delivery an for PNW was indicated at $340 per MT a substantial increase. The FOB value for Indian corn is still at $300 per MT, making it possible for Indian corn to be a choice in SEA/MEA regions.

DDGS prices on FOB basis (US Gulf) remained fairly stable, but trade did indicate higher delivered prices to Vietnam ($320-324 per MT) and also to China ($309-311 per MT) for the period Apr-Jun 2011.

Freight rates for the US-Gulf-Japan was down by $1 to $58 per MT and for PNW-Japan down $1 per MT to $35 per MT. Argentina/Brazil-China rate was also down by $2 to a range of $56-58 per MT.

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

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