Maize prices in major spot markets were steady as arrivals fell amid weak bulk demand from feed makers. However, bulk purchases by the poultry industry and animal-feed makers are likely to remain subdued as consumption of poultry products declined due to rumours that broilers and eggs were carriers of the novel coronavirus.
An outbreak of African Swine Fever in Assam is also seen hitting demand in northeastern states as culling pigs is the only option. A decline in feed consumption due to the virus may also hit demand for maize, a key component of animal feed, in the region.
Most of the corn futures contracts finished the last trade day before the holiday break with losses of 1/4 to 3/4 cents. July corn futures closed 1/4 higher at $3.18. The US and China continue to make posturing statements about various issues, but the background concern is negative GDP growth in China and how soon they turn that around.
Both countries are signaling that Phase One purchasing commitments are still in effect, but actual Chinese buying has lagged those levels. Some areas are reporting too much moisture for planting or drowned out spots. Others still need a drink. It is a big country! The weekly Commitment of Traders update from CFTC showed corn specs were net sellers of 245,386 contracts on May 19. Managed money funds gained 33,948 new shorts on the week