Futures contracts of maize on the NCDEX ended higher due to improved buying from poultry sector and less availability of good quality stock in wholesale markets. November delivery industrial maize contract on the NCDEX ended at […]
Telangana government buying maize at 1700 rupees per quintal from farmers. Government has not yet announced official procurement numbers but estimated to be over 35000 Mt from local sources and the news of buying continues unabated in the market. Slight rains in North Karnataka and some heavy showers in South Karnataka. If this happens the harvesting activity will slow down a bit. Rest of corn Producing areas are forecast to have dry and clear weather. North India markets continue to be rather firm and markets are expecting arrivals to flow into southern markets from now on. Indents have been placed in three more stations in Madhya Pradesh and the market awaits the arrivals now.
Brazilian farmers are expected to harvest up to 238.54 million tonnes of grain in the 2018/19 season, with the South American country potentially breaking its production record thanks to expected corn and soy bumper crops. In the prior season, Brazilian farmers harvested some 227.91 million tonnes of grains like soybeans and corn. Much of the gain is expected to be in corn, with output expected to rise as much as 12.75 percent to 91.08 million tonnes, Conab said in its first forecast for the 2018/19 season, which kicked off in September. Brazil’s soybean output could total 119.42 million tonnes in 2019, roughly in line with this year’s record of 119.28 million tonnes, Conab said. Brazil is the world’s largest exporter of soy. Levels of farm credit, strong fertilizer sales and the intention of farmers to plant at least 61 million hectares (150 million acres) of grain all indicate a strong harvest. Recent bumper crops have been eagerly sought by China, whose demand for Brazilian grains skyrocketed this year as a result of the country’s trade war with the United States.Conab expects Brazil to export 76 million tonnes of soybeans in 2018, an all-time high since records began, and 75 million tonnes in 2019.
The latest report of United States Department of Agriculture (USDA) stated that despite the slightly higher-than-anticipated planting of kharif corn, MY 2018/19 forecast for corn production is unchanged at 26 MMT due to expected lower yield, compared to last year due to patchy monsoon in western India, and reports Fall Army Worm (FAW; Spodoptera frugiperda) in corn producing states in southern India. The governments provisional planting report for the period ending September 20, 2018, estimates the kharif corn planted area at 7.92 million hectares compared to 7.93 million hectares during the corresponding period last year, but higher than the five-year historical average of 7.89 million hectares. However, deficient rains during July delayed planting of corn in most of the growing states, while prolonged dry spells during critical crop growth and reproductive stages of the crop in some parts of Karnataka, Maharashtra, and Gujarat are likely to affect yield prospect. MY 2017/18 corn exports are estimated marginally higher at 900,000 MT based on the latest available official export figures. According to available trade estimates from the Global Trade Atlas, MY 2017/18 corn exports through June 2018 are estimated at 742,000 MT compared to 389,000 MT during the corresponding period last year, mostly to neighboring Nepal and Bangladesh, with small quantities going to south Asia. Market sources report that exports during July 2018 were steady around 100,000 MT. With exports likely to taper down in the last quarter on rising domestic prices, MY 2017/18 exports are likely to reach 900,000 MT
Futures contracts of maize on the NCDEX ended lower due to profit booking after rising in the last two sessions. On the NCDEX, October delivery maize contract ended 6 rupees lower at 1,388 rupees per 100 kg. Bulk demand from starch and poultry industry has reduced in spot markets due to less availability of good quality stocks. Fresh crop arrival has commenced in some parts of Karnataka, a leading grower of the coarse grain in the kharif season, but the moisture content is too high at present. The new crop has moisture content of 28-30%, while the desirable level is only 14-15%. Both the quantity and quality of the fresh crop arrivals are expected to improve from the next month, when harvest peaks.
Price of the coarse grain in Purnea, the key market for rabi maize in Bihar, increased around 10 rupees from previous close to 1,390-1,410 rupees per 100 kg. Prices edged higher because of less availability of good quality crop in wholesale markets.
Arrivals of the new crop of maize have started in some parts of Karnataka, a leading grower of the coarse grain in the kharif season. It has been three-four days since the new kharif maize crop has started arriving in Karnataka. Around 50-100 tn of new maize crop is arriving regularly on an average. However, the price of the old crop is still higher than that of the new crop, as the latter has high moisture content. The new crop has moisture content of 28-30%, while the desirable level is only 14-15%. Bulk buyers from the poultry, starch and food sectors prefer to buy stock from the old crop, with less moisture. Currently, there isn’t much demand in wholesale markets, as most bulk buyers have already stocked maize to meet their requirement till the end of the month.
They closed with most contracts 1 to 2 1/4 cents higher supported by gains in the wheat complex. Trade Ministry data shows Brazil’s September corn exports at 3.424 MMT, up 18.11% from August but down 42.12% from last year.
Maharashtra’s State Co-operative Marketing Federation along with Adivasi Vikas Mahamandal will start procurement of maize, paddy, jowar, bajra and other coarse cereals on behalf of Food Corp of India. Procurement of paddy (in Maharashtra) will start from now, while that of maize, jowar and bajra will commence from Nov 1. The government will procure fair average quality common paddy variety at 1,750 rupees per 100 kg and grade “A” variety at 1,770 rupees per 100 kg. Procurement of maize will be at 1,700 rupees, bajra at 1,950 rupees and jowar hybrid variety at 2,430 rupees and Maldandi variety at 2,450 rupees per 100 kg. The registration and buying of the farmers’ produce will be done online through NCDEX e-Markets Ltd, formerly known as NCDEX Spot Exchange Ltd. Output of kharif rice in the country in 2018-19 (Jul-Jun) is estimated at 99.24 mln tn, up 1.8% on year, kharif maize output is forecast at 21.47 mln tn, up 6.1%, while that of kharif jowar is estimated at 1.88 mln tn, down from 2.10 mln tn in 2017-18.
Spot price of maize in key Davanagere market in Karntaka was steady at 1,400-1,450 rupees per 100 kg. Demand from bulk buyers is limited because of less availability of good quality crop. Currently, maize prices are stuck in a range as buyers are waiting for fresh crop arrivals to begin, which could exert pressure on spot prices.
Maize production is expected to cross 30,000 tonnes this year. Maize was sown in 13,000 acres in Khammam and Bhadradri districts and the extent of the irrigated dry crop is increasing by the year. Farmers at large in Mudigonda, Kusumanchi, Bonakal, Errupalem and Chintakani mandals in Khammam district and Allapalli, Sattupalli, Yellandu, Tekulapalli, Mulakalapalli and Chandrugonda mandals in Bhadradri district opted to sow maize. The crop is now at harvesting stage and his is creating tension among the farmers as they remember the horrible experiences of last year. Delayed lifting led to crop getting damaged in the fields due to rains last year. The resultant losses were put at around Rs 5 crore. The delayed lifting also forced farmers to stay at the lifting centres over three days or more. Private traders, who cashed in on the the situation, bought the damaged maize at throwaway prices.
Area under kharif maize in India was just 0.1% lower on year at 7.9 mln ha. Maize acreage in the country was higher than the normal area of 7.4 mln ha for the season, which is based on the average of last five years. Sowing was higher on year in key growing states of Karnataka, Madhya Pradesh, Rajasthan, Uttar Pradesh, and Telangana, while it was down in Maharashtra, Bihar, Jharkhand, and Haryana. Acreage was also higher in states like Andhra Pradesh, Telangana, and Karnataka, despite reports of armyworm pest attack in some pockets of these states. Announcement of higher minimum support price by the Centre for maize encouraged growers to bring more area under the coarse grain in top producing states. However, patchy distribution of monsoon rains led to a fall in acreage in some regions.
Corn futures saw 2 to 3 1/4 cent gains in most front months. Export Inspections report from the USDA showed 1.263 MMT in corn shipments during the week of September 20. That was up 21.95% from the week prior and 61.97% larger than the same time last year. 72% of the US corn crop was mature as of 9/23 (avg. 53%), with harvest listed as 16% complete (avg. 11%).
Some 17.74 million tonnes of Ukrainian maize was exported in the 2017/2018 marketing year.
The effects of a summer drought have continued to weigh on crops in the European Union despite less severe conditions in the past month. Persistent dryness, which has hurt crops and parched grasslands across northern Europe, also poses a risk for the rapeseed that has just been sown for next year’s harvest. Forecast of the EU’s 2018 grain maize yield to 7.49 tonnes per hectare (t/ha) from 7.57 t/ha estimated last month.
JAPAN’S USE OF CORN IN ANIMAL FEED RISES IN JULY. Japan’s use of corn in animal feed rose to 48.1 percent in July from a year earlier.
Area under maize in India was 0.2% higher on year at 7.9 mln ha. Maize acreage in the country was higher than the normal area of 7.4 mln ha for the season, which is based on the average of last five years. Sowing was higher on year in key growing states of Karnataka, Madhya Pradesh, Rajasthan, Uttar Pradesh, and Telangana, while it was down in Maharashtra, Bihar, Jharkhand, and Haryana. Acreage was higher in states like Andhra Pradesh, Telangana, and Karnataka despite reports of armyworm pest attack in some pockets of these states. The India Meteorological Department had given timely advisories to maize growers in these states to curb the spread of pest attack.
A fresh problem in the form of Fall Armyworm, or Spodoptera frugiperda, threatens farmers across the country this kharif season. Currently infesting the maize crop, agricultural scientists warn that this pest could soon spread and attack other crops, including cotton, sorghum, sugarcane, cabbage and soyabean. This pest, which reportedly entered India from Africa, could result in huge economic losses if not attended to in time. From Karnataka where it was reported first, it spread to Telangana and Andhra Pradesh. Telangana is among the hardest hit, with the Fall Armyworm extensively affecting the maize crop in 17 out of 30 districts.
Prices of maize in Purnea, a key market in Bihar, eased by around 4 rupees from previous close to 1,321 rupees per 100 kg amid steady arrivals of around 2,000 tn. Spot price of the coarse grain eased after rising in the last few sessions on the back of good demand from poultry and starch sector. Expectation of higher maize production in Karnataka, a key growing state, weighed on prices. Karnataka has pegged its maize output for 2018-19 (Jul-Jun) at 3.53 mln tn, up 26% on year.
In thin trade, maize prices hardened by Rs 20 per quintal at the wholesale grains market due to pick up in demand from consuming industries. Mill demand from consuming industries led to rise in maize prices. In the national capital, maize rose by Rs 20 to Rs 1,360-1,365 per quintal.