Maize prices fell sharply in Nizamabad due to weak demand for the new crop on quality concerns. The new crop was sold at 1,580 rupees per 100 kg, down 350 rupees from the previous close, as the most of the crop arriving in the mandi had high moisture content of 25-30%, as against the acceptable limit of 13-14%.
High moisture content in the new crop makes it unfit for storage, hitting demand from poultry feed and starch manufacturers.
Prices of maize from the old crop was largely steady at 1,930 rupees per 100 kg today despite a sharp drop in overall arrivals. Arrivals were pegged at 9,000 bags (1 bag = 100 kg), compared with 19,000 bags.
At Davangere in Karnataka, another key market, maize was at sold 1,880 rupees per 100 kg, largely steady from the previous session on weak demand. Arrivals had increased to 10,000 bags from 4,000 bags.
Nearby corn futures finished the day with fractional gains, touching a penny for May contracts. The EIA posted up to date ethanol production numbers for the week ending 11/8.
Ethanol production averaged 1.03 million barrels per day over the week, which was another uptick in average daily production, up 16,000 barrels wk/wk. Weekly ethanol production has been rising for the last 7 weeks.
While production increased, ethanol stocks decreased to 20.985 million barrels. Most of the drawe came from the Midwest region, where ethanol stocks fell by 333,000 barrels, the Gulf region’s ethanol stocks were 255,000 barrels less wk/wk while the east coast used 178,000 barrels more than their production.
Strategie Grains cut their 19/20 EU maize crop estimate 100,000 MT to 63.5 MMT, despite an increase in French production.