Monsoon reached India, sowing has started and moving at a good pace. maize has been placed on 0.307 million hac and still a long way to go. Overall prices of maize have declined in the market and in Bihar the prices were INR 12400 per MT at the rake point and delivered to destinations at INR 15500/MT, approximately $238/MT, higher than the world prices. In most of the locations, US corn is delivered in containers at prices ranging from $199-208/MT, making their products more competitive in the world market. Bulk prices would still be cheaper as FOB prices are close to $165 (FOB (US Gulf) and $175/MT (PNW).
Almost 96% of the crop has been planted in the US and there has been some dry weather which is cause of concern in some areas and that led to higher prices of corn on CBOT. July corn closed at $152.59/MT, up 4.05%; Sep$155.74/MT, up 3.90%; Dec $159.83/MT, up 3.84% and Mar 2018 $163.22/MT up 3.46. Higher corn prices also translated into higher DDGS prices somewhat and it was quoted at $160/MT US Gulf and $178/MT PNW. These prices are in Bulk. Delivered prices in containers to Vietnam were $191/MT and $189/MT to China. In close by areas, deliveries to Bangladesh are being quoted at $208/MT (for 40 feet containers). Bulk prices again will be little lower and Pakistan buyers have purchased DDGS in bulk at lower prices. From Jan to Apr 2017, Bangladesh has purchased almost 23,000 MT of DDGS, up from last year’s 4185 MT; Myanmar has purchased 8790 MT from Jan to April 2017 against last year’s 3733 MT. Pakistan too has purchased some 17,000 MT. Overall most countries continue to purchase and use DDGS as it is consistently available at attractive prices. Currently DDGS is priced at 97% of corn on FOB basis.
Ethanol prices in US showed a decline in 2nd week of June and might move up as corn prices moved up. Jul $0.4101/lit; Aug $0.4106/Lit; Sep $0.4101/Lit; and Oct $0.4082/lit. While in most cities, a Air Plan has been put in place, but it is only to monitor the air pollution and nothing on finding a solution to Air pollution. India’s demand of petrol continues to grow. In May 2017, the demand of petrol grew by 15% and over the next few months as the demand will grow, the blending of petrol with gasoline will actually be lower. As monsoon covers India, the Air Pollution will not be a major problem, but as we move into winter – starting Nov 2017, the problem is going to come back.