Prices of maize in Karnataka were largely steady as bulk demand remained subdued while supply was steady.
In Davangere, prices and arrivals have been steady since Monday. Maize was sold at 1,700 rupees per 100 kg.
Prices of maize are likely to fall as the rabi crop may hit markets in March. Demand from bulk buyers may not immediately pick up as the new arrivals would be of poor quality with higher moisture content.
Corn futures closed the Wednesday session fractionally to 2 cents weaker. Data from the EIA regarding ethanol stocks and production from the week ending 02/21 showed ethanol production 14k bpd higher wk/wk to 1.054 million barrels per day.
Ethanol stocks were 63,000 barrels lower than last week @ 24.718 million. The Gulf stocks were higher wk/wk, but not enough to offset the other PADD districts. The West coast imported 35,000 barrel per day of ethanol, but the region’s stocks were still 88,000 barrels lighter.
The estimated average corn use for ethanol is 104 mbu/week through the MY. U.S. Grains council reported Gulf FOB ethanol prices at $1.432/gal, which is 2.3% lower wk/wk. PNW FOB ethanol prices were 2.6% lower wk/wk in the same report.
Private exporters reported a sale of 123,000 MT optional origin corn to South Korea for a 19/20 MY delivery. Traders anticipate USDA’s Export Sales report to show 0.8-1.3 MMT of corn bookings for the week ending 02/20.