Meanwhile, prices of maize in spot markets rose due to a decline in supply and a marginal rise in demand.
Demand from bulk buyers rose after prices softened over the last few weeks. Bulk demand is, however, seen waning within a few days as prices are likely to rise due to the gradual decline in supply.
On NCDEX, maize futures rose sharply as demand improved in spot markets. Likelihood of a fall in supply also supported prices. The most-active July contract rose 1.5% to 2,031 rupees per 100 kg.
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 maize crop for 2018-19 at 18-20 mln tn, compared with 28.7 mln tn in the previous year.
Corn futures closed the session with most contracts steady to 4 1/4 cents lower. Traders are positioning themselves ahead of Friday’s USDA reports.
Weekly EIA data showed 1.072 million barrels per day of ethanol were produced in the week that ended on June 21. That was down just 9,000 bpd from the previous week and even with the same week last year.
Stocks of ethanol were down 46,000 barrels at 21.567 million barrels. The trade range of estimates for old crop corn sales in the week of June 20 is 150,000-450,000 MT, with new crop at 100,000-300,000 MT.
The average trade estimate for corn acreage ahead of Friday’s Grain Stocks is 5.332 bbu, which would be 27 mbu larger than the same time last year.