Turning equations in the grain market: premiums quoted in corn prices rather than wheat!

- Ubhi Bazar ઃ Dilip Shah

- In such an environment, the consumption of maize as animal feed is now declining: Pakistan's increased competition in the world market

Domestic production of various grains was limited in the country years ago and in the meantime the country had to import food grains from overseas due to high demand. However, with the onset of the Green Revolution, domestic production of foodgrains increased and the dependence on imports gradually declined, and then there was the situation when we stopped exporting instead of importing. In the meanwhile, besides wheat and rice, sorghum, millet, maize, barley etc. are grown at home. There was also a significant increase in the production of coarse grains. Before this, sorghum, millet, maize etc. Such grains were known as the grain of the poor but now the equations and now every class is consuming wheat-rice as well as maize, sorghum, millet etc. on concessional basis, grain market sources said. Consumption of maize has recently increased in almost every country in the world and trade in global maize markets has also seen a significant increase. In addition to human consumption, there are indications of significant growth in corn consumption as well as animal feed.

Meanwhile, the grain market in the country has also witnessed a unique phenomenon recently. In many markets of the country, corn prices have been trading higher than wheat prices recently. This is the first such incident in a decade, said a veteran grain market expert. Demand equations have also seen changes as wheat prices appear lower than corn. As a result, some demand for maize has shifted to wheat, which has led to an increase in domestic and overseas export trade. India's overseas wheat exports are now also seen as animal feed. Following Indonesia's recent purchase of Indian wheat for this purpose, news has come out that Vietnam's buyers have also shown interest in buying Indian wheat for such purposes as per the new guidelines. In such an environment, the total export of wheat from the country is estimated to be around 3 million tons, market experts are showing. Wheat futures were trading at around 7.5 to ૬ 2.50 a bushel (approximately Rs. 1,200 per tonne) in the US futures market, compared to a recent high of ૬૫ 7.5 to ૭ 2.50 per bushel (approximately Rs. 1,200 per tonne). Were seen. Such a situation was seen in the market as far back as June 2011. Thus, after about a decade, the market has repeated such a move, world market experts said. According to domestic news from South India, consumers have to pay as low as Rs 3,000 per tonne for consumption of maize as animal feed, while buyers have to pay around Rs 1,200 per tonne for such purposes. In such an environment, many buyers in the south have recently reportedly bought about 5,000 tonnes of wheat from Uttar Pradesh for this purpose. Such customers are now likely to come to the government's open market sale of wheat.

Meanwhile, Pakistan's rivalry with India in the world corn market has also increased recently. Pakistan is trying to increase its share in the maize export market. Maize production in Pakistan has increased by about 3 to 4 per cent this year, prompting reports that the government has set a target of exporting about one million tonnes of maize. In the world market, Pakistan is trying to increase exports by offering maize at about ૫ 15 to ઓછા 20 per tonne less than India. In India, corn exporters are exposed to Malaysia, Vietnam, Sri Lanka, Bangladesh etc. About four lakh tonnes of maize has recently been traded for export. In the current calendar year of 2021, the prices of maize in the world market have gone up by about 30 to 5 per cent so far. In the world market, the price of Brazilian corn has risen by about 30 to 5 percent in twelve months. In the US, corn prices have risen by 20 to 30 per cent. Maize exports from India rose to about 6 lakh tonnes in the financial year 2020-21, a six-year high. However, in the current financial year 2021-2, the competition for wheat against maize has increased. Besides, Pakistan's competition in the world maize market has also increased. However, there is talk in the market that Pakistan's maize quality is getting lower than ours. Maize production in India was recently estimated at 205 to 206 lakh tonnes. The government recently raised support prices for maize in Kiev. 150 per head. Maize production in Pakistan has increased from 3 to 4 lakh tonnes to around 3 to 4 lakh tonnes. According to the US Department of Agriculture, corn exports from India are expected to fall by about 3 to 4 lakh tonnes this year. The use of corn is also likely to increase in India for making ethanol.