Prices of maize continued to fall across key spot markets due to a rise in arrivals and persisting weak demand from poultry feed manufacturers and starch makers. Arrivals in key producing states of Telangana, Andhra Pradesh, and Karnataka have picked up as farmers are offloading more stocks.
Arrivals in Nizamabad were pegged at 25,000 bags (1 bag = 100 kg), higher than 20,000 bags. Demand from bulk buyers, however, remained weak as the arrivals from fresh crop is still of poor quality. Demand for the new crop is weak due to quality concerns. But the moisture content in most crops has reduced to 20-25% from 30% about a week ago. The acceptable limit is 13-14%.
On NCDEX, maize futures rose on anticipation of a crop smaller than the government’s estimate. The most-active December contract ended 2.2% higher at 1,900 rupees per 100 kg. Industry players also peg kharif maize crop this year at 16.1 mln tn, much lower than the Centre’s estimate of 19.8 mln tn.
Corn futures closed Friday fractionally lower to 1 1/2 cents lower in the front month as losses deepened through the contracts. That closed helped to cement a wk/wk loss, which was 2 1/2 cents. December options expire today.
Total export commitments for corn are slowly whittling away on this time last year, now lagging by 45.4% from the same week in 2018. They are just 28% of the USDA export projection, with the average pace at 43% for this week.
CFTC reported that as of Tuesday manage money was net short 123,530 contracts, a position which grew by 12,609 positions to the deepest short position since the beginning of October.