Maize prices continued to fall across key spot markets as bulk purchases from poultry-feed makers and other key buyers weakened while arrivals remained largely steady. In Nashik, arrivals were pegged at 500-600 bags (1 bag = 100 kg).
In Nizamabad, arrivals were at 600-700 bags. Bulk demand declined further as most buyers have bought the stock they require for the next few weeks, and moved to the sidelines. However, prices of the coarse grain are seen rising in the coming weeks as tight supply is anticipated in most key markets due to the ongoing lockdown.
Corn futures posted gains on Wednesday, with stronger old crop moves eating into carry. Corn was 3 1/2 to 8 1/4 cents higher. EIA data showed that ethanol production averaged 563,00 barrels per day for the week ending April 17. That was down 7,000 additional bpd wk/wk, and is down 470k bpd (46%) from the pre-March MY average daily production. Even with the additional production cuts, stocks continued to build, up 220k barrels to 27.689 million. Gulf stocks were up the most on the week.
FOB prices for Gulf ethanol were 98.5 cents/gallon on April 21, according to U.S. Grains Council. Brazilian FOB ethanol prices were 84.9 c/gal on April 21, the nation’s weak real is suppressing their price further. U.S. Gulf FOB gasoline prices were 59.8 c/gal. U.S. Grains council showed FOB DDGS prices were $243/MT on April 16. On April 22, domestic DDGS prices in China were 2,100 Yuan/MT (~$294/MT), which was stable with the week’s trend. Export Sales estimates for tomorrow range 0.6 to 1.1 MMT of old crop corn bookings, and 50k to 300k MT of new crop corn sales.