Spot maize prices rise on pick up in bulk demand

Spot prices of maize rose marginally across major spot markets due to a decline in arrivals. A marginal rise in demand from bulk buyers also supported prices.

Bulk buyers are waiting for the imports to start soon and have curtailed their purchases as imports are more attractive due to rising domestic prices.

On NCDEX, maize futures ended lower due to forecast of normal monsoon this year. The June contract closed 0.5% down at 1,882 rupees per 100 kg.

Corn futures saw 5 to 9 1/4 cent losses in most contracts. Despite the drop on Friday, July still closed 5.63% higher this week. July was up 17.7% during May, with month-end profit taking a feature of Friday’s trade.

Overnight President Trump decided to impose a 5% tariff on imports of all goods from Mexico, effective June 10. Friday’s Export Sales report showed a six-week high in old crop sales of 906,765 MT, well above the top end of estimates.

Japan was the lead buyer of 713,200 MT. New crop sales totaled just 76,468 MT in the week of May 23. As of Tuesday, CFTC data showed spec funds in corn futures and options trimming their net short position by 95,993 contracts to 20,736 contracts.

EPA announced today that E15 gasoline sales will be permitted year round, effective as soon as the notice is published in the Federal Register. Brazil’s AgroConsult raised their corn production projection 2 MMT to 100.4 MMT.