A rise in arrivals across key spot markets weighed on prices of maize. Subdued demand from bulk buyers also led to a decline in prices.
Demand for fresh kharif maize crop is likely to remain weak in the coming days as the fresh arrivals are of poor quality with moisture content at 25-30%, against the acceptable limit of 13-14%.
In key markets of Maharashtra and Karnataka, supply rose but most of the arrivals were of poor quality due to a rise in moisture content following heavy rainfall on recent days.
Futures contracts of maize on NCDEX fell sharply, tracking weak cues from spot markets. The November kharif maize contract fell 1.8% to 1,970 rupees per 100 kg.
Corn futures finished session with 4 to 4 3/4 cent losses. Trade ideas for US corn harvest are running 65-66% completed. USDA won’t release those numbers until Tuesday because of the Veteran’s Day holiday.
South Korea was reported to have purchased 66,000 MT of corn today. Reportedly, the purchase was directly from US sources, as South Korea did not issue an international tender.
Projected US ending stocks were cut to 1.910 bbu on Friday, with smaller production but also lower exports, feed use, and ethanol use. The world corn carryout was also cut to 295.96 MMT.