Spot maize prices steady on firm demand, arrivals

Maize across key spot markets were steady due to firm demand and arrivals.

Demand is likely to fall in the coming days as bulk purchasers may avoid picking up stocks at higher prices.

Maize futures on NCDEX, however, rose sharply on anticipation of a supply shortage in the coming days. The most active August maize contract was 1.3% higher at 2,180 rupees per 100 kg.

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 the session with most contracts 5 to 6 1/4 cents higher after a week of losses. Since last Friday, Sep has dropped 5.17%.

Spillover buying from soybeans and wheat was supportive, along with Fed easing talk.

Friday’s Commitment of Traders report indicated that spec traders in corn futures and options were net long 187,260 contracts as of Tuesday.

Commercials were net short 522,525 contracts on that date, nearing a record number of short positions (1.134 million). Safras & Mercado expect the 19/20 Brazilian corn crop to total 103.97 MMT.