Prices of maize rose across key spot markets due to firm demand from bulk purchasers amid a gradual decline in arrivals. In Nizamabad, maize was sold at 2,270 rupees per 100 kg, up 10-15 rupees.
Maize futures on NCDEX, too, rose tracking spot markets. The most-active September maize contract was 0.8% higher at 2,200 rupees per 100 kg.
Maize prices are seen rising further in the coming days as bulk buyers anticipate a sharp decline in supplies due to a likely small crop in 2018-19 (Jul-Jun).
Poultry feed and starch manufacturers, the key industrial buyers of maize, have pegged the crop at 18-20 mln tn this year, compared with 28.75 mln tn produced last year.
Corn futures closed with the front months 10 to 11 1/2 cents lower. This morning’s weekly Export Sales report showed just 200,009 MT of old crop corn bookings in the week that ended on July 11.
That was down 68.8% from the same week in 2018 and below trade expectations. Japan was the main buyer of 144,300 MT. New crop sales were tallied at 132,997 MT, within the range of estimates but still 82.83% below this week last year.
Total corn export commitments are 15.5% below the same week last year. Compared to the USDA projection, they are 93% complete, vs. the 102% average.
Most of that lag is from unshipped sales, as accumulated exports are 84% of that projection and even with the average pace. A Chinese auction of state reserves saw 522,921 MT of corn sold on Thursday, which was 13.47% of the amount offered.