Imported corn that arrived in India in late February 2016 is awaiting discharge, following the Methyl Bromide re-fumigation at Kandla port. As market awaits the receipt of the cargo, spot prices have more or less remained stable. From last week of February to 1st week of March, the prices moved up slightly. Nizamabad at Rs 14614/MT up 0.41%, Davangere at Rs 14900/MT up 0.51%; Karimnagar stable at Rs 14550/MT; Sangli down 1% to Rs 14750/MT, Gulabbagh 4.67% to Rs 16930/MT. which indicates that the market awaits the arrival of maize in Bihar. Future trade from Bihar continues, contracts at Rs 14500-14750/MT being done for April/May 2016 deliveries. There have been some rains in some of the corn belts, no major harm reported, but that could delay the harvest by a few days. The high day time temperature would also mean early maturity. Future price however have move up in the last two weeks as weather related and sentiments. March up 0.92% to Rs 14240/MT; April up 5.28% to Rs 12760/MT; May up 3.52% to Rs 12350/MT; June up 3.32% to Rs 12440/MT and July at Rs 14614/MT.
In the US however, the future prices have been down from 2nd week of February 2016 and for last week have been stable. The market may have found the bottom as of date as the market also await the WASDE report this week. On Corn contracts March $130.52/MT; May $141.02 down 0.36%; July $143.06/MT down 0.22%; September $145.42/MT down 0.16%. The downtrend on the CBOT has helped the FOB prices to also soften and currently indicated at $159 /MT (FOB US Gulf); $168/MT (FOB PNW).
The freight rates from US to the market has been low and the market may have found a bottom here as well. There are more ships in the market and this is leading to more supply than demand. Trade is also good, but not enough to fulfill the supply. Benchmark US Gulf-Japan down to $22.75/MT; PNW-Japan down to $13.25/MT; US Gulf-China $21/MT; PNW-China $12.25/MT; Argentina-Brazil-China ranging.
Following the low corn prices in US, DDGS prices on FOB basis have been more or less stable at $183/Mt (FOB US Gulf) and $198/MT (FOB PNW). It is a good buy for the poultry and date sector as a protein-energy source. CNF price stop Vietnam at $213/MT and to China at $210/MT. The DDGS has 27% protein and 6% fat and can be used in broiler and layer ration at 10% levels and in dairy feeds at 15% levels without any problem. Indian poultry and feed millers continue to use high priced SBM at Rs 34000/MT, while the world continues to use low prices protein meals to feed the livestock. Imported Sunflower meal is all coming to India and priced at a max of Rs 21000/MT (all costs paid) for a 35% protein. DDGS could be one of the cheapest sources of protein with an added advance of energy, which also will need to be valued. Just as corn, the duty on import of protein meals will need to be ZERO to make it feasible.