Prices of maize fell at major spot markets

Prices of maize fell at major spot markets due to a decline in demand from bulk buyers at higher prices and a rise in arrivals. In Sangli, arrivals were pegged at 3,000 tn. In Nizamabad, arrivals were estimated at 900 bags (1 bag = 100 kg), up from 700 bags.

Demand from poultry feed manufacturers, however, is likely to remain robust in coming days as they are stocking up the grain in anticipation of a smaller crop in the kharif season. Market participants see maize output in the kharif season at 16.1 mln tn, lower than the government’s estimate of 19.9 mln tn.

Corn futures closed steady to a penny higher following a December 25th break in trade. Strength in wheat futures was supportive. The EIA report will not be published until the 27th showing ethanol production and stocks for the week of December 20.

Export Sales will also be release on Friday morning, with estimates for 19/20 ranging from 0.5 to 1.2 MMT and 0-100,000 MT for 20/21. Last week’s Cattle on Feed and Monday’s Hogs & Pigs reports showing record or near record inventories are supportive to the corn market. Dalian Chinese futures were 5 CY per metric tonne higher on Wednesday while the US market was closed.