Maize down on low demand

Prices of maize fell across key spot markets today due to a decline in demand from bulk buyers and stockists.

Demand was subdued over the past few weeks due to a sharp rise in prices.

Demand is likely to remain subdued due to high prices in spot markets. A further decline in the supply may, however, cap the fall in prices.

Tracking cues from spot markets, maize futures on the National Commodity and Derivatives Exchange also fell. The most-active August contract ended 1% lower at 2,146 rupees per 100 kg.

Prices of maize are seen firm in the coming days as the supply has shrunk.

Corn futures were lower again falling 10 to 19 1/4 cents in the front months. Monday’s WASDE report showed reduced estimated corn FSI (from ethanol) use by 25 mbu in both 18/19 and 19/20.

That, along with a 100 mbu reduction for 19/20 exports, contributed to an increase in both old and new ending stock estimates. Monday’s crop ratings by state saw IL down 2 points on the Brugler500 scale, with IN 10 lower and IA down 3.

Ratings in NE (+7), MO (+4), and SD (+1) were all reported higher.

Parts of the WCB are expected to receive significant rainfall over the next 7 days. A total of 130,000 MT of optional origin corn was purchased by two South Korean importers on Tuesday.