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 gained back 3 to 4 1/2 cents on Turnaround Tuesday. US corn harvest was reported in line with trader anticipations, with the USDA stating that the 18 states have progressed 14% since 11/03.
Corn harvest is officially listed at 66% complete on 11/10, which is well behind the 85% average for this time of year. North Dakota was listed as 61% below their average pace, with So Dak reported 45% behind normal.
WI and MI were also more than 30% behind their average pace. Also mentioned in the weekly report, sorghum harvest was ahead of average by 8 percentage points. Corn export inspections released by the USDA outpaced anticipations, with a near double (97.43% increase) over last week. The 560,105 MT for the week ending 11/07 was still remarkably below last year’s 1.158 MMT in weekly exports.
MYTD the USDA has inspected 4.321 MMT of corn exports, 61.2% below last marketing year’s pace of 11.138 MMT. US FOB prices are above Argentine and Ukrainian prices, although recently below Brazil.