Stable Maize prices in India, higher than world market

India’s maize prices remain stable, but higher than the world market. Spot prices in Nizamabad up 1.51% against 1st week of January to Rs. 14694/MT; Davangere up 1.42% to Rs. 16025/MT; Sangli down 1% to Rs. 14800/MT and Gulabbagh up 0.46% to Rs. 16500/MT. Overall area under Rabi maize is also up, expect a good crop, but a major drop in prices may not be there. Future prices though have shown a decline. Jan down 0.71%to Rs. 14030/MT; Feb down 0.76% to Rs. 14370/MT; Mar down 1.21% to Rs. 14650/MT; Apr stable at Rs. 14930/MT and May up 0.33%to Rs. 15210/MT.
While future corn prices have moved up a bit and Mar corn closed 0.11% higher at $141.09/MT; May up 0.22% to $143.85/MT and Jul up 0.27% to $146.61/MT, US FOB prices remain competitive and were down by a $1/MT, indicated at $166/MT (US Gulf) and $178/MT (PNW). The biggest drop though has been in the DDGS prices this week and a drop of $9/MT to $139/MT (US Gulf) and $4/Mt drop to $172/MT (PNW) indicative prices. Delivered prices to the main destination in Asia down as well and CNF price to Vietnam dropped $6/Mt to $180/MT and to China by $10/MT to $175/MT. DDGS remains the most optimally priced plant protein today and there is plenty available in the US and at this prices, livestock farmers can take advantage to reduce the feed costs.
India’s barley prices in the last three months have risen by almost Rs. 1820/MT, an increase of 11.22% and currently spot prices are ruling at Rs. 18030/MT at Jaipur. India has imported some stocks from Argentina and France at much cheaper prices (Rs.14000-15000) delivered to Kandla in bulk in the last few months. US barley prices are currently ranging between $185-190/MT.
US ethanol prices this week have come down and are very competitive in relation to other origins. US ethanol on CBOT for Feb contract was down 5.57%to $0.39/liter; Mar down 4.81% to $398/liter; Apr down 3.61% to $0.403/Liter and May down 2.23% to $0.407/Liter.
Bulk freight rates have been moving up slightly and steadily and the benchmark US Gulf-Japan freight rate was indicated at $35/ MT and PNW-Japan at $18/MT; US Gulf-China quoted at $34/MT and PNW-China at $17.25/MT. Argentina/Brazil to China indicated in the range of $31.50-22.5/MT.

by Amit Sachdev, Indian Representative, US Grain Council