The markets are trading sideways from yesterday’s levels. The Bihar/WB arrivals are constant, estimated to be only about 20-25% of what they were last year. This gets reflected in rake numbers moving out as well. Destination market levels are as below
Tamil Nadu:- Rake 1500-1520, Trucks 1600-1620
Bangalore:- Rake 1500-1510, Trucks 1580-1600
Hyderabad:- trucks 1560-1600.
Bihar:- 1180-90 Rake point, 1250-70 warehouse.
North:- 1380-1400 UP cargo for Haryana/Punjab
Cargo demand from Maharashtra/Guj/Haryana is getting serviced from UP, Punjab is servicing its destination, so effectively Bihar is only servicing the southern and local markets.
There are reports from the markets about the lower product realisation from the starch and poultry sector like starch prices not moving over 20000/- pmt gluten prices trading in the range of 43000-44000 ex-factory with limited sales, Broiler bird realisation in south markets at 75-80/- per kg which was over 110-120 last week. This seems to be the real challenge ahead of the market. If this trend persist maize prices could be heading in sideways territory.
July contract trading at 1295 with an open interest of 2330 mt, which is increasing as prices are stable or moving lower, indicating some weakness in the markets. Rainy weather not allowing cargo be deposited in exchange accredited warehouses.
The USDA rated 72% of the U.S. corn crop in good to excellent condition in its weekly crop progress report, up 1 percentage point from a week ago. Analysts polled by Reuters had expected a slight decline.
Worries about fuel demand also weighed on the market as COVID-19 cases surged in the United States. Cbot july contract is trading at 326 cents/bushel now a cent higher than yesterday’s close.
Corona cases in India reported the highest in a day till now @ 15000 in a single day. The experts warn about the second wave and its impact on the markets. We see Sensex and nifty trading lower, Sensex by over 500 points and Nifty over 150 points. The rupee is trading firm at 75.72.