Coimbatore: Maize futures has closed higher in the Rs 8,140-8,490 per tonne range for the March/April deliveries as compared to current market yard prices (loose) which are quoted at Rs 7,200-7,300 per tonne, according to market reports. Run-up to Budget 2008-09
The May and June 2008 deliveries are quoted even higher at Rs 8,800-8,990 per tonne respectively.
According to the US Grains Council India market report for the just ended week, with the demand for Indian maize in export market remaining firm, the prices have started to show a firm trend after a little lull. Another reason for higher futures prices is the anticipated lower rabi crop which is expected to be around 2.54 million tonnes as against last year’s crop of 3.54 mt.
The report also stated that maize price in spot market too rose this week with Ratlam and Nimbaheda market quoting at Rs 8,300 and Rs 8,375 per tonne respectively, while the prices in Karimnagar and Davangere markets were prevailing at Rs 7,217 and Rs 6,877 per tonne.
The US maize prices kept moving up along with higher freight giving support to export of maize from India to South-East Asian markets. For example, the US Gulf maize prices on f.o.b. were indicated at $228-229 per tonne and the freight cost to Japan was at $107 per tonne, making the aggregate delivery cost at $325-326 per tonne. Whereas Indian corn at a quote of $235 per tonne (f.o.b. and freight quoted at $38-40 per tonne for the South Asian destinations, the delivery cost would work out at $275-280 per tonne. With the cost differential of $40 per tonne between Indian and the US corn, another round of buying by exporters could not be ruled out, the report added.
The May and June 2008 deliveries are quoted even higher at Rs 8,800-8,990 per tonne respectively.
According to the US Grains Council India market report for the just ended week, with the demand for Indian maize in export market remaining firm, the prices have started to show a firm trend after a little lull. Another reason for higher futures prices is the anticipated lower rabi crop which is expected to be around 2.54 million tonnes as against last year’s crop of 3.54 mt.
The report also stated that maize price in spot market too rose this week with Ratlam and Nimbaheda market quoting at Rs 8,300 and Rs 8,375 per tonne respectively, while the prices in Karimnagar and Davangere markets were prevailing at Rs 7,217 and Rs 6,877 per tonne.
The US maize prices kept moving up along with higher freight giving support to export of maize from India to South-East Asian markets. For example, the US Gulf maize prices on f.o.b. were indicated at $228-229 per tonne and the freight cost to Japan was at $107 per tonne, making the aggregate delivery cost at $325-326 per tonne. Whereas Indian corn at a quote of $235 per tonne (f.o.b. and freight quoted at $38-40 per tonne for the South Asian destinations, the delivery cost would work out at $275-280 per tonne. With the cost differential of $40 per tonne between Indian and the US corn, another round of buying by exporters could not be ruled out, the report added.
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