Corn harvest report

US corn harvest has started, though slow. The WASDE report in first week of September put the corn production in the world at 1028 MMT, which is likely to keep the prices under pressure. But at the same time there few changes in domestic consumption were made as low priced wheat would give completion to corn. The global corn ending stocks though were unchanged at 219.4 MMT which suggests ample corn. US ending corn stocks are estimated at 60.55 MMT. Prices in the US were down this week, Sept down 2.30% to $126.84/MT; Dec down 1.18% to $132.67/MT; Mar down 1.20% to $136.39/MT and May down 1.17% to $139.52/MT. This is also reflected in US FOB prices where were down by at least $5/Mt against 2nd week of September to $161-166/MT for deliveries in Oct-Dec period (FOB US Gulf). Indicative price FOB PNW was $181/M, down $4/Mt against 2nd week of September. Argentine corn was indicated at $171/MT and Brazil at $189/MT, while Black se corn was indicated at $164-169/Mt for the period Oct-Dec.
Indian corn prices on SPOT were high and a full-fledged harvest is yet to start. Though small arrivals have started in some markets. Expecting a crop of 16-17 MMT, Indian corn prices will need to be at $165/Mt (FOB) (Rs.11055/MT) if any exports have to happen. Nizamabad corn was prices at INR 18210/MT up 0.52%; Davangere at INR 18200/MT; Karimnagar at INR 18735/MT and Sangli at INR 19200/MT up 1.02% and Gulabbagh at INR 15578/MT up 0.83%. Poultry prices are improving, but still lower than cost of production.
As the US corn prices are down, DDGS prices too have been down and DDGS remains a cheapest protein source in comparison to other protein sources, DDGS with 27% protein is price at $6.59 per unit protein, while SBM at $372/MT with 48% protein is priced at $7.75 per unit protein. DDGS offers and additional advantage of 6-7% oil to provide energy in the rations.
Source: US Grain Council