Spot maize prices down as supply rises, demand weak

Prices of maize in Davangere, a key spot market in Karnataka, fell today due to an increase in supply, traders said. Weak demand also weighed on prices.

Maize was sold at 1,650 rupees per 100 kg, down 50 rupees from Friday. Arrivals were pegged at 1,500 bags (1 bag = 100 kg), up from 1,000 bags, a local trader, Shiv Kumar, said.

Prices are likely to fall further in coming days as fresh supply of the rabi crop may start hitting markets this month, traders said.

Corn futures were 4 to 8 1/2 cents higher for the new month with March leading the way. Corn used to make fuel alcohol in January was 2.03% lower mo/mo @ 469.46 mbu.

MYTD ethanol production has used 2.244 mbu of corn, compared to this point last year with 2.271 mbu. That is on pace with the February WASDE forecast. The weekly Export Inspections report from USDA showed corn shipments from the week ending 02/27 were 896,221 MT. That is 30,604 MT more than the same week last year. The 35.29 mbu shipped brought the MYTD corn shipments to 555.8 mbu, which is 45.7% below last year’s pace but steadily improving. USDA has corn exports for the 19/20 MY at 1.725 bbu, with 27 weeks left in the MY, that requires an average weekly shipment of 43.3 mbu.

The highest weekly shipment this MY was last week with 35.9 mbu. Brazil published export data for February, showing the nation shipped out 346,400 MT of corn. That was down 84.9% mo/mo and 78.3% lower than Feb ’19. The country also exported 164.2 Million L of ethanol, which was 46.6% higher yr/yr.