Maize prices a tad up in spot markets on low arrivals

Prices of maize rose marginally across spot markets today due to a decline in arrivals. A fall in demand, however, limited the rise in prices. In Nizamabad, maize was sold at 2,430-2,450 rupees per 100 kg, 5-10 rupees higher from previous close.

Demand remained subdued as purchasers are avoiding buying bulk stocks at higher prices. Tracking spot cues, maize futures on NCDEX also rose. The most-active September contract on the exchange was at 2,175 rupees per 100 kg, up 0.5% from the previous close.

Corn futures closed the session with most contracts 2 to 5 1/2 cents lower. Spillover weakness from soybeans and light old crop sales pressured the market.

The 5-day QPF shows scattered rains over the next few days across the Corn Belt, with amounts totaling an inch or less. The USDA Export Sales report showed old crop bookings just shy of estimates at 121,196 MT during the week of July 18.

That was down 40% from last week and 74.2% below the same week last year. New crop sales were above trade expectations at 386,614 MT. USDA released their MFP guidelines this morning for this year, with prevent planted acres with MFP eligible cover crops qualifying for a $15/acre payment.

Regular crop payments run from $15 to $150 per acre with much of the Corn Belt in the $45-90 range. The International Grains Council trimmed their projected world production number by 3 MMT, with carryout seen 2 higher than last month at 273 MMT. An auction of Chinese state reserves saw a total of 681,410 MT of corn sold, which was 17.11% of the amount offered.