Indian maize prices continue to move up on futures as well as the spot markets. June contract expired on Jun 20, 2016, up 1.05% to Rs.15360/MT; Jul up 6.67% to Rs.164760/MT; Aug up 6.52% to Rs.16830/MT; Sept 6.81% to Rs.17100/MT Oct up 5.31% to Rs.15480/MT. Oct is the first of the Khariff Contracts and in one week say an increase. Spot prices in key markets were up on demand from poultry and starch sector and also based own the higher import price of corn from the world market. Nizamand up 4.36% to Rs.16890/Mt; Davangere up 2.61% to Rs.17675/MT; Karimnagar up 3.62%to Rs.16916/MT, Sangli up 5.11% to Rs.18500/MT and Gulabbagh up 8.63% to Rs.15727/MT. Delivered price top South India (Tamil Nadu, poultry hub) remain high at Rs.18250/MT. Maize sowing at this time is lagging by about 11% against last year, Bajra and Small millets is up by 62% and 24% respectively. Soybean sowing is down by 86% at this time. It is still too early to say how much corn will be sown, now that the entire India is covered by monsoon, the pace of sowing could increase. The tender for 50,000 MT of Non-GM corn import was opened recently and one bid of $254-255/MT (CNF Gujarat ports) was received. This is high price as there is not much corn available in Ukraine which supplied corn to India earlier.
Following Brexit vote, coupled with very good growing conditions in the US, the corn prices were down considerably. While following the vote, the markets dropped faster, there was some uptrend, but overall, corn turned cheap in the US. Jul contract down 12.16% to $151.33/MT; Sept down 12.11% to 153.44/MT; Dec down 12.13% to $155.19/MT. Following the downtrend on CBOT, FOB prices have also softened and were indicated in the range $185-195/MT. For both US Gulf and PNW for the period July-Sept. Argentina/Brazil origin corn is prices at $183-186/MT July delivery and Black sea corn at $202/MT or higher on FOB basis. The growing conditions in the US remain very good and about 75% of the crop is in good to excellent condition.
As the corn prices in the US dropped, DDGS followed and is currently priced on FOB basis (US Gulf) at $212/Mt (July) and $207/MT (Sep). Delivered price to Vietnam $278-263/Mt (July-Spet) and to China $285-260/MT (July-Sep). The protein co-products, CGM price was down $10/MT to $615/Mt (FOB). US SBM is priced at $438-444/MT (48% protein) and 46.5% Protein SBM delivered price to Asia is indicated at $480-484/MT.
US ethanol price too is down by about 4.8% following drop in corn prices. On CBOT, US ethanol’s prices between $0.422/litre in July to $0.405/litre in Oct 2016. China continue to buy US ethanol and from Jan-April 2016 has bought 416 million litres at an average FOB price of $0.44/litre.