India maize prices remain stable and on a downward trend at least for some time as the end users wait for the new crop and the demand is also subdued. The sowing is complete for maize and now it is wait and watch. The monsoon has also entered the last phase and as per IMD the withdrawal could be delayed bit. Overall the rains have been just about normal and deficit at 3%, but there are areas in the corn belt which have received less rains and there is a possibility of productivity loss due to moisture stress.
Sept (Rabi) future Rs. 13000/MT, down 0.61%; Oct (K) Rs. 15580/MT down 2.14%; Nov (K) Rs. 15680/MT down 2.12%; Dec (K) Rs. 15760/MT down 2.17% and Jan 2018 (K) Rs. 15840/MT. Spot prices too were down, Jalgaon Rs. 14500/MT (Same as last week); Nizamabad Rs. 15462/MT down 2.02%; Davangere Rs. 17050/MT down 0.87%; Sangli Rs. 16000/MT, down 4.19% and Gulabbagh Rs. 13300/MT down 0.12%.
US, especially Texas was hit by Hurricane Harvey, but it is not affecting the corn crop. The contract to watch at this time in Dec 2017, which turned lower than $3.5/bushel and on Aug 30 closed at $3.455/Buhsel ($136/MT) and then rose sharply to close at $139.83/MT on Sept 01, 2017. There is no such to buy corn by domestic users as well and that is keeping the prices stable. If there is a export demand, prices may move up. Sept contract $133.85/MT, up 0.41%; Dec $139.83/MT up 0.51%; Mar 2018 $144.72/MT up 0.33% and May closed at $147.71/MT. US corn on FOB basis (US Gulf) was indicated at $160Mt slightly higher than last week and Prices at PNW were same as last week at $176/MT.
DDGS prices on FOB basis was down and indicated at $168/MT (US Gulf), down 3.45% and on PNW basis $177/MT down 6.35%. On FOB basis DDGS is priced at 105% of corn and is a good buy. Delivered price to SEA region remains stable, Vietnam $195/MT; China 4188/MT; Chittagong $212/MT and Myanmar $212/MT. As on Sept 01, 2017, Vietnam cleared DDGS imports with Phospine fumigation. This is likely to increase the demand of DDGS into Vietnam. The country is one of the biggest users of DDGS in SEA region and uses is a feed ingredient of choice in Poultry, swine and fish feeds.