Maize prices in India declined in the last week of March as arrivals have started in Bihar. Though the quantity was small and with high moisture, arrivals are likely to stabilise in two weeks time as dry stocks will arrive. Spot prices was down 3.02% at Rs. 15840/MT on Mar 22, 2016 and since then the market was closed for a long weekend. On Mar 28, 2016 the prices dropped further to Rs. 13900/MT which is kind of the price it should be at the start of the season. The five cargoes have arrived in India, while two (Kandla and Jaigarh) have discharged the maize, other three (Tuticorin, Vizag and Kandla) await final discharge and maize will be available to the end users in South and East India soon.
In the US the corn prices have move up, but not of much significance. May contract up 0.82% to $145.66/Mt; July up 0.75% to $147.39/MT and Sept up 0.69% to $149.28/MT. Once the USDA report on planting intentions is available, its affect on the price movement can be understood better. The FOB prices also moved up a bit and were indicated at $165/MT (US Gulf) and $170/Mt (PNW). Argentine corn was quoted at $164/MT. Brazil $161/MT and Black Sea corn at $163/MT. (All price are FOB basis at respective ports). US corn price delivered to SEA region @ $202/MT for US#2.
DDGS prices remained more or less stable in the last week of March and FOB prices were indicated at $172/MT (US Gulf) and $194/MT (PNW). Delivered prices to SEA region were indicated $211/Mt to Vietnam (April) and down to $208/MT in Jun. Delivered price to China was $205/MT. US SBM price (FOB) was indicated $322/Mt and delivered to Asia at $370/MT Argentine SBM indicated $309/MT. India SBM price is quoted at $530/MT at factory. US CGM price is down at $535/MT. It would make sense for Indian poultry feed and cattle feed manufacturers to look at DDGS as a protein of choice. It’s protein value i s 26% and it also contains fat at 6%, addicting that extra quality parameter to the ingredient). For the Calendar Year 2015, India’s close neighbour, Bangladesh imported 17,547 Mt of DDGS. Myanmar imported 5,675 MT of DDGS. From Sept 2015- Jan 2016, imports to Bangladesh have been 13,711 MT, 77% higher than last year’s imports in the same period. Indian poultry industry will need to decide on its plant protein requirements and decide on what it needs to do. It would be difficult to match the demand with these current supplies. Like maize has been imported, plant proteins will need to be imported at least to fulfil the current deficiency. The freight rates remain stable. The benchmark US Gulf-Japan freight rate was indicated at $23/ MT and PNW-Japan at $14/MT; US Gulf-China quoted at $21.50/MT and PNW-China at $13/MT. Argentina/Brazil to China indicated in the range of $26-14.75/MT
Source: Techpro India