Prices of maize rebounded in key spot markets due because of a severe supply crunch.
Traders have withheld stocks as prices had eased due to weak demand from flour millers.
Stockists and farmers are anticipating that prices would rise in the coming days as the supply crunch is likely to remain.
As demand for the new maize crop is likely to remain firm, stockists are holding stocks back on expectation of a further rise in prices.
In Nizamabad, arrivals were pegged at 300-350 bags (1 bag = 100 kg). In Davangere, arrivals fell to 450-500 bags from 600-650 bags.
Corn futures closed the session with most contracts within 1/4 cent of UNCH. This morning’s Export Sales report showed old crop sales totaling 6.056 MMT in the weeks ending Jan 10-Feb 14.
That was an average weekly sale of 1.009 MMT, and 42% behind last year. New crop sales were 29,170 MT. The lead buyer of corn in that time frame was Mexico at 1.427 MMT, with Japan at 1.349 MMT.
Total Commitments are still 2.1% larger than last year. USDA released more forecasts for 19/20 at this morning’s Ag Outlook Forum, showing carry out at 1.65 mbu, down 85 mbu from this year’s projection.
This afternoon’s Grain Crushing report showed a total of 460.512 mbu of corn used for ethanol production in December. That was up 1.3% from November but down 5.58% from the same month in 2017.