Prices of maize across key spot markets also rose sharply due to a decline in arrivals. A fall in bulk purchases, however, restricted gains.
Due to sharply higher prices, end users are avoiding picking up stocks in bulk. Most of them have replenished their inventories and have stopped purchasing. About a year ago, maize was sold for 1,100-1,200 rupees per 100 kg.
On NCDEX also maize futures rose sharply due to the sharp decline in arrivals. The most-active July contract was up nearly 2% at 1,845 rupees per 100 kg.
Corn futures saw firm to 2 1/4 cent gains in the front months, with deferred contracts lower.
Spillover from beans was supportive. This morning’s EIA report showed ethanol production (and corn consumption) in the week of June 7 was the largest since last August.
Production was 1.096 million barrels per day, up 52,000 bpd from the week prior. Ethanol stocks dropped 751,000 barrels to 21.802 million barrels, the lowest figure since last July.
Export Sales estimates ahead of Thursday’s weekly report for the week of June 6 range from 250,000-550,000 MT for old crop and 100,000-300,000 MT for new crop.
USDA raised their old crop corn cash average price by a dime on Tuesday to $3.60. New crop was bumped up 50 cents to an average price of $3.80.