Prices of maize in key spot markets were steady

Prices of maize in key spot markets were steady due to a decline in arrivals amid low demand from key consumers, traders said.
Arrivals in Nashik were pegged steady at 1,000 bags (1 bag = 100 kg), compared with 1,200 bags on Monday, local traders said. In Nizamabad, arrivals were at 2,000 bags as against 2,200 bags on Monday, local trader Amrutlal Kataria said.

Bulk demand is seen subdued in the coming days as most buyers are awaiting fresh rabi crop to hit the markets in early April, the traders said.

Corn futures ended the Wednesday session lower by 3 to 3 1/2 cents in the front months. March contracts were fractionally lower ahead of Friday’s expiration. EIA reported ethanol production at an average of 1.044m bpd for the week ending 03/06. That was 35,000 barrels per day lower wk/wk. Ethanol stocks, at 24.334 million barrels, were 630k barrels lower wk/wk.

The U.S. Grains Council’s weekly Ethanol Market report showed FOB Gulf prices for the fuel were 3.5 cents lower wk/wk. Ethanol prices were 5.3% below the same week last year at $1.348/gal. May ethanol futures ended the Wednesday session 1.5 cents/gal lower at $1.25 c/gal.

A Cargill executive reported European ethanol demand has doubled mo/mo, but not for fuel. Denatured ethanol is the main ingredient in hand sanitizer, and COVID-19 has triggered global shortages of hand sanitizer. Analysts anticipate tomorrow’s Export Sales report will show 600k-800k MT of corn bookings for the week ending 03/05. Traders also expect up to 100,000 MT of new crop bookings.