Price of maize across key spot markets fell despite supply being tight, because of weak demand from food manufacturers. Demand was low following Telangana government’s decision to sell 400,000 tn of maize at a discounted rate to poultry units in the state.
Spot maize prices will be under pressure in the near term as demand from poultry units will weaken as they will now source the coarse cereal at lower prices from government stocks.
With prices coming under pressure in the state due to this decision, prices elsewhere will also edge lower in the near term.
Corn futures were 2 1/2 to 3 3/4 cents lower. There was general commodity selling ahead of Friday’s raft of USDA reports and in the face of an extended dollar rally.
Nearly a month delayed weekly Export Sales report showed 503,117 MT in old crop corn sales in the Christmas week ending 12/27. That was down from the week prior as expected but still well above the same week last year.
Ahead of USDA reports, analysts are expecting US 18/19 carryout to be trimmed by 73 mbu to 1.708 bbu. They also estimate that Argentine production will be slightly higher at 43.09 MMT and Brazil will drop 1.09 to 93.41 MMT.