Maize prices across key spot markets continued to rise due to firm purchases by feed manufacturers amid fear of a severe supply crunch in the coming days. A rise in arrivals, however, limited the gains in spot markets.
Demand is seen firm in the coming weeks, as purchases by bulk buyers will increase, anticipating a tight supply.
In Nizamabad, Telangana, maize arrivals were pegged at 1,500-1,700 bags (1 bag = 100 kg), up 200-300 bags. In Davangere, arrivals rose by about 200 bags from Tuesday to 1,100-1,300 bags.
On the National Commodity and Derivatives Exchange, however, the most active May maize contract ended 9 rupees lower at 1,770 rupees per 100 kg, as traders booked profits after it a fresh high.
Corn futures saw most contracts steady to fractionally higher on Wednesday. Higher ethanol futures provided some strength.
The weekly EIA report showed ethanol production at 1.005 million barrels per day in the week that ended on March 8, down 19,000 bpd from the week prior.
Stocks of ethanol were down 530,000 barrels at 23.731 million barrels, as the Gulf was the only region to not show a reduction.
Thursday’s Export Sales report is expected to show between 0.8-1.2 MMT in old crop corn sales in the week of 3/7, with 0-300,000 MT for new crop. An Allendale survey shows expected 2019 corn acreage at 91.475 million acres.