In last one week (4th week of September), due to holidays and a short week no major market activity. Also rains in southern peninsula have added to a feel good factor and there is some hope that the maize crop will survive and India will have a reasonably good crop. Withdrawing monsoon rains has given that added advantage for the Rabi crop and farmers could sow the crops sooner as the soil moisture is expected to be good. As on Sept 24, 2015 (as per GOI data), maize has been sown in 7.662 mill hac of land in 2015/16, 1.31 million hac more than 7.563 mill hac in 2014/15 khariff. The only reason the maize production could be hit is due to the long dry spell that has affected the growth of the crop in the July-Aug 2015 period.
Overall the spot prices have remained stable, Nizamabad at Rs.15344/MT; Karimnagar Rs.15475/MT; Davangere at Rs.15750/MT; Sangli RS.16000/MT and Gulabbagh Rs.14212/MT. Not much maize is in Bihar the new marketing year starts on Oct 1, 2015 for the khalif season. While the large extent of supplies of maize are likely to start later in the month of Oct, some early harvested grain may be expected to arrive in some regions and prices would be good, but this will also is high moisture maize.
US corn prices move up in otherwise stable international market
In the US the prices had been going down for some time and it is interesting to see that in the midst if the harvest when normally prices tend to move down, this week the prices moved up by close to 3%, but this uptrend could be short-lived. US and other nations will be flush with corn and prices are not expected to move up. Corn on the exchange CBOT) for the three contracts was up, Dec up 3.13% to $153.14/MT; Mar up 3.04% to $157.55 and may up 2.88% to $160.38/MT. FOB prices were indicated at $173-177/MT (US Gulf) for the period Oct-Dec, 2015 delivery and at PNW at $188/MT. Prices from other origins have remained stable. Argentina $160-166/MT; Brazil $161-168/MT; Black Sea corn $166-169/MT and French corn at $177-180/MT. Indian corn at this point does not stand a chance in the world market.
DDGS prices remain very competitive
DDGS prices remain very competitive, freight rates (Container freights) to SEA region is down making it a good buy. FOB US Gulf @ $181/MT and PNW @ $186/MT. Delivered prices to Vietnam indicated @ $242/MT and to China @ $222/MT. Current corn Gluten Meal (CGM) prices too are down and indicated at $630/MT.
