Maize prices extended their gains across key spot markets mainly due to aggressive buying by feed manufacturers. However, a rise in arrivals, limited sharp gains.
Prices rose today despite a rise in arrivals as the bulk buyers fear a further rise in prices due to a severe tight supply.
Prices are seen rising in the coming days as bulk purchases have firmed up amid a likely smaller crop this year.
In Nizamabad arrivals of maize were pegged at 700-750 bags (1 bag = 100 kg) up about 200 bags, while in Davangere arrivals were estimated at 600 bags compared with 450 bags on the previous day.
On the National Commodity and Derivatives Exchange, the May maize contract ended at 1,632 rupees per 100 kg, up 62 rupees from the previous close.
Corn futures ended Wednesday with most contracts 2 to 3 1/2 cents lower. The weekly EIA report indicated ethanol production down 4,000 barrels per day at 1.024 bpd for the week of 3/1.
Ethanol stocks were seen at 24.261 million, up 552,000 barrels wk/wk and the second largest on record. Delayed Census trade data from December showed exports of 4.345 MMT (171.06 mbu) of corn in that month.
That was down 14.88% from November but 22.1% larger than last year. Exports this MY (through Dec) were 803 mbu and up 64.5% from last year. Ethanol exports totaled 139.78 mgal, with DDGs at 890,491 MMT.
Mexico is contemplating implementing new tariffs on US corn and poultry imports, because the US tariffs on Mexican steel are still in place. Trade estimates range from 0.7-1.1 MMT in old crop corn bookings for the week of 2/28, with new crop at 100,000-300,000.