July 8, 2008

 

India's corn prices to hit US$23 per quintal despite export ban

 
 

Indian corn prices, which dropped in both spot and futures market after the recent export ban, may soon be hitting INR1,000 (US$23.18) per quintal within a month due to supply crunch.

 

Traders said the export ban's impact on prices is temporary and corn will hit new highs due to scant supply expected until September this year.

 

India announced ban on corn exports until October 15 to step up the domestic supply and in turn contain inflation which has risen to a double-digit level.

 

India-based representative of the US Grains Council, Amit Sachdeva, said the ban may help poultry and feed industry, but whether prices would moderate or rise further will entirely depend on the supply-demand situation in the next 10 days.

 

As July-September is a lean period, the limited stock supplies would put pressure on prices till the ban period, Sachdeva noted.

 

Anil Kabra, another trader from Nizamabad, said the price fall would continue for the next 2-3 days but they would resume back to a bullish track to touch INR1,000 per quintal mark within a month.

 

Spot prices fell to INR957 per quintal from INR964 per quintal. On NCDEX, most-active July delivery of corn dropped by almost 8 percent to INR894 per quintal.

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