Prices of maize also rose across key spot markets due to a decline in arrivals. Firm demand from end users also supported prices. “Demand from bulk buyers remained robust today as they are purchasing maize aggressively in anticipation of severely tight supply in the coming days.
On the NCDEX, maize futures rose sharply due to firm demand in spot markets. Maize prices are seen rising sharply going ahead as bulk consumers anticipate a sharp decline in output in 2018-19 (Jul-Jun). Poultry feed and starch manufacturers, the key industrial users of maize, peg the 2018-19 crop at 18-20 mln tn, compared with 28.7 mln tn in the previous year.
Corn futures closed with most nearby contracts 7 to 9 1/4 cents lower. USDA’s Crop Progress report indicated that 94% of the US corn crop was emerged. Crop ratings were steady at 56% gd/ex, with the Brugler500 Index up 1 from last week to 350.
USDA also released their monthly Grain Crushing report, with May corn used for ethanol down 2.29% from last year at 459.643 mbu, up 4.4% over April.
That was also the largest monthly crush since December. USDA Export Inspections data showed an abysmal 272,513 MT of corn shipped in the week that ended on June 27. That was down 55.89% from the previous week and well below the same week last year.
A majority of that was to Mexico (167,063 MT). Accumulated exports have now slipped to 8.8% below last year at 41.747 MMT (1.643 bbu). Brazilian corn exports have been a large part of that, as they totaled 1.369 MMT during June. That was a 32.82% jump over May and more than 9 times larger than a year ago.