News
12.05.2009
India's corn prices firm on increased demand
Maize prices firmed up in the wholesale markets during last week to average at Rs 8,250 per tonne level on rising demand, according to US Grains Council.
"Maize prices moved up slightly to Rs 8,250 per tonne on an average," US Grains Council India Representative Amit Sachdev said.
"While prices in Karnataka, Maharashtra and Tamil Nadu remained close to Rs 7,700 per tonne at the market yard (much below the Minimum Support Price levels), prices in other markets were close to Rs 8,200 per tonne," he said.
Maize prices were about 10 per cent higher than last year. On the futures market, corn remained stable, except for July contract where prices firmed by 3 per cent to reach Rs 9,340 per tonne.
Globally corn strengthened due to planting concerns and good demand. In the US, maize prices have been moving up steadily last week due to planting concerns.
As per reports, 33 per cent of corn planting has been completed, up by 24 per cent compared to last year, but is lower than the five year (2004/2008) average of 50 per cent.
"Reports indicate that Argentina may not be in the market for long and that Brazil also has a 2 million tonne lower corn crop," Sachdev said.
Maize moved up on Chicago Board of Trade (CBoT) and May corn futures was up 1.92 per cent at 162.98 dollars per tonne, while July and September was up by 1.79 per cent and 1.65 per cent respectively against last week.
In other coarse cereal category, Bajra prices moved up slightly to Rs 8,860 per tonne at the market yard. It was 13 per cent higher than last year. Food Corporation of India (FCI), Haryana, released about 11,000 tonne bajra in the open market at Rs 8,120 per tonne and the coarse cereal will find way into poultry or cattle feed if the prices are right, Sachdev said.
The total bajra stock at the FCI godowns is about 310,000 tonne at various locations across the country.
Jowar prices have surged by 14 per cent to Rs 11,409 per tonne. Prices were 10.8 per cent higher than last year. Completion of about 30 per cent jowar planting in the US against last years 31 per cent helped in boosting prices.
Barley prices moved up by about 12 per cent to Rs 9,000 per tonne range, but are lower by 12.7 per cent than last year. In the futures market, barley prices remained stable, while in the spot market in Jaipur, prices moved up by 0.5 per cent to Rs 9,035 per tonne.
Reports of barley planting in the US lagging behind at 22 per cent against last years 50 per cent and five years average 54 per cent is also pushing up the prices.
The Press Trust of India
