Maize gain on low arrivals, firm bulk demand

Prices of maize across spot markets rose due to a decline in arrivals amid firm demand from bulk buyers such as poultry feed and starch manufacturers. Demand rose from bulk buyers as most of them started picking up more stocks anticipating a delay in arrivals of the new crop. Following heavy rains and flood-like situation last week in Karnataka and Maharashtra, both key growers of kharif maize, market participants anticipate delay in the harvest and, consequently, in arrivals. The harvest is seen delayed as heavy rains might have led to higher moisture content in the standing crop. Maize futures on the National Commodity and Derivatives Exchange also rose, tracking spot markets. The most-active September maize contract ended down 0.2% at 2,200 rupees per 100 kg.

Corn futures ended trading fractionally higher on Thursday. This morning’s USDA Export Sales reported bookings for 18/19 at 119,267 metric tons (MT) in the week that ended on August 15, 112% higher than last week. New crop sales totaled 301,608 MT, down 2% from the previous week and 72% lower than the same week last year. Those were both on the low end of estimates. A sale of 50,000 MT of sorghum was reported to China. The Pro Farmer Midwest Crop Tour finished up in Minnesota today, with the national Pro Farmer estimate set to be released on Friday. CONAB expects Brazil’s corn-based ethanol production to rise by 70.89% to 1.35 billion liters (8.491 million barrels) in 19/20.