Spot maize prices up on weak arrivals, firm demand

Prices of maize across spot markets rose due to firm demand from bulk purchasers and a gradual decline in arrivals.

In Nizamabad, maize was sold at 2,250 rupees per 100 kg, up 10 rupees.

Maize futures on NCDEX, however, fell as traders booked profits after a sharp rise in the past few sessions. The most-active August maize contract was 0.5% lower at 2,151 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 the session with most contracts fractionally higher. EIA reported weekly ethanol production at 1.066 million barrels per day in the week of July 12.

That was a jump of 19,000 bpd from the week prior and slightly above the same week last year. Stocks on that date were 23.365 million barrels, 356,000 barrels above last week.

Export Sales estimates for old crop corn ahead of tomorrow morning’s USDA release are running 250,000-500,000 MT, with new crop at 100,000-300,000 MT for the week of July 11.