Maize prices to remain supported on export enquiries

Maize prices after remaining subdued until mid of June have bounced back due to export enquiries and fears of lower sowing so far in the Kharif sowing season. Prices of benchmark Gulabbagh market in Bihar is currently selling around 1830 rupees per 100 kg up from 1500 rupees on June 15 while in Davengere, Karnataka prices are quoting at 2000 rupees per 100 kg, up from 1,780 rupees on June 15. Most of the shipments were destined for Indonesia, Vietnam while some fresh enquiries are being signed from Bangladesh. According to sources, nearly, 200,000-205,000 ton of maize have been shipped to Vietnam in the month of June. There are reports of some quality issues which is restricting sharp upside.

Meanwhile, on the sowing front, acreage of maize in the Kharif season as on July 7 in the country is pegged at 4.9 mln hectares as compared to 5.3 mln in the corresponding period a year ago. Lower sowing has also contributed to the current upside in the maize prices. Sowing has been highest in Madhya Pradesh so far, followed by Karnataka, Uttar Pradesh, Rajasthan and Maharashtra.  Key sowing areas of Kharif maize in Madhya Pradesh in 2021 are Chindwara, Seoni, Betul, and Rajgarh. There is a probability that current higher prices could also augment sowing. It would be interesting to monitor going ahead as to which commodity sowing will have an upper hand in 5 key states namely Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh and Karnataka. There has been a stiff competition between sowing of soybean and tur, soybean and maize, soybean and cotton.