Wholesale price of good quality maize in Bihar’s Purnea, a key market, rose 5-10 rupees 1,320 rupees per 100 kg. Good demand from starch and poultry industry along with less availability of good-quality crop in the wholesale markets supported prices. Stocks of good quality maize in Bihar the largest producer of maize in the rabi season are dwindling, because most was exported to Bangladesh in Apr-May.
Maize acreage in India was unchanged on year at 7.7 mln ha. The Centre has hiked minimum support price for maize to 1,700 rupees per 100 kg for kharif marketing year starting October from 1,425 rupees in the previous year, which encouraged farmers to sow more in the key producing states of Madhya Pradesh, Karnataka, Rajasthan and Gujarat. However, in some states, the acreage was down because of patchy distribution of rains. During Jun 1-Sep 2, the country received 683.2 mm rains, 6% below the normal weighted average of 728.3 mm.
Ukraine’s maize production will jump this year to just over 30 million tonnes, supported by record yields after crops benefitted from good growing weather. kraine, one of the world’s largest grain growers and exporters, is expected to produce 30.28 million tonnes of maize (corn) this year, up 23 percent from 24.67 million in 2017 and 12 percent above the average of the past five years. The bumper volume would reflect a projected record yield of 6.69 tonnes per hectare, up from 5.51 tonnes per hectare last year.
Some bulls were giving up, with preliminary open interest -13312 contracts on the day. The bulk of that was in September, with options expired and FND on Friday. NASS showed 68% of the corn in good or excellent condition, while the Brugler500 Index was up 1 point to 373. The big acreage states showed slight improvements in ratings last week. Overall ratings typically decline a notch or two each week in August. A Farm Futures survey of producers shows expected 2019 acreage of 90.8 million acres. That is up more than 1.7 million acres from 2018, but those intentions will likely change over the next 7-8 months.
Indias maize acreage was 1.6% higher at 7.3 mln ha as of Thursday from the year-ago period. Acreage in the country was also 1.4% higher as compared with the normal area of 7.14 mln ha, which is based on the average of the past five years. Higher planting in Madhya Pradesh, Karnataka and Rajasthan has offset the decline in other key growing states of Maharashtra, Bihar and Telangana. Announcement of higher minimum support price for maize by the government in July also encouraged farmers to bring more area under the crop. The Centre hiked the minimum support price for maize to 1,700 rupees per 100 kg for kharif marketing year (Oct-Sep) from 1,425 rupees in the previous year. Acreage was still down in some states because of subdued monsoon rains. India received 457.3 mm of rainfall during Jun-Jul, 10% below the normal weighted average of 508.5 mm for the period.
Ukraine’s maize harvest may hit a record 27-28 million tons this year and sales to China could rise by 10 percent due to the trade war between the US and China. Ukraine has exported 2.6 million tons of maize to China so far in the 2017/18 September-August season, out of total sales of 16.6 million tons.
The IGC kept its forecast for world corn (maize) production in 2018/19 at 1.052 billion tonnes, slightly above the prior seasons 1.044 billion, but a second successive global deficit was expected with consumption seen at 1.098 billion. A projected increase in maize largely hinges on a recovery in output in South America where planting for 2018/19 is still some months away.
UkrAgroConsult the consultancy raised its forecast for this year’s maize harvest to 27.3 million tonnes from the previous estimate of 26.6 million tonnes. The 2018/19 maize exports forecast remained unchanged at 21 million tonnes. The current weather conditions suggest corn yield in Ukraine may rise. In view of the above. Forecasts corn production in the country to hit a record 27.3-27.5 million tonnes.
Maize sowing in the country has gained momentum, with total area under the coarse grain rising to 6.13 mln ha from 5.11 mln ha as on Jul 12. Maize acreage in the country was largely unchanged from the year-ago period and was only a tad lower from the normal of 6.15 mln ha, based on the average of the past five years. A pick-up in rainfall across the country has boosted planting of maize.
In order to encourage farmers to grow maize instead of paddy and check the fall in ground water level, the Punjab government has announced a subsidy on farm inputs for the coarse grain in 2018-19 (Jul-Jun) kharif season. The state government has also announced a subsidy of 120 rupees per kg on purchase of maize seeds. The state government is promoting cultivation of maize in place of paddy under the crop diversification scheme. Groundwater level in 32% area of the state has fallen below 20 mtr from 2 mtr in 2000.
Punjab-based starch and poultry feed industries travel hundreds of kilometres to Bihar and Uttar Pradesh to procure superior quality maize in bulk and also save up to Rs 50 per quintal. Maize production in Punjab is far less than demand mainly because of farmers’ over-dependence on lucrative crops like paddy. The annual industrial demand of maize is around 3-4 million tonnes while Punjab produces less than 1 million tonne. Out of the total demand, almost 70% is being consumed by the poultry feed manufacturers. Punjab is likely to produce 5.70 lakh tonnes of maize in the current kharif season compared to 4.09 lakh tonnes in the previous year. As compared to Punjab, the average production in Bihar is around 6 million tonnes. Bihar grows the largest quantity of maize for the industrial use. The landing cost of maize purchased from Bihar is around Rs 1,230-1,250 per quintal. Punjab’s maize is, however, sold at around Rs 1,250-1,270 per quintal, including levies.
The delivery center for maize contracts expiring in November and thereafter has been shifted to Sangli from Erode. As an additional delivery center earlier, Sangli received deposits of 12,350 tn of maize in 2015-16 and 6,100 tn in 2016-17. Sangli is also an important production center for the cereal, while Erode was mainly a consumption center. The November maize contract will be available for trading from Jul 2. Nizamabad and Jalgaon have been added as additional delivery centers to increase participation from farmer producer organisations.
Maize futures on the National Commodity and Derivatives Exchange ended lower as traders booked profits after a rise in the last two sessions. The most-active August maize contract on NCDEX ended at 1,175 rupees per 100 kg, down 0.8% from the previous close. Prices of maize have remained subdued in the last one month due to poor demand and high inventories from the kharif crop. Subdued prices of the coarse grain have also been keeping farmers away from taking up its cultivation this kharif season. As of last week, acreage of kharif maize was down 22.6% on year at 491,000 ha.
The National Cooperative Dairy Federation of India will buy 4,100 tn of maize through an e-auction. The commodity, used as cattle feed, will be bought on behalf of Rajasthan Co-operative Dairy Federation. The National Cooperative Dairy Federation, with around 200 dairy cooperatives as members, has developed an online trading platform to purchase feed stock and sell dairy products.
CBOT Corn futures closed steady to fractionally mixed as July was down 1.11% on the week. The USDA reported a private export sale of 131,300 MT of corn to Mexico this morning. The sale was broke down to 30,000 MT for delivery in 2017/18, with the remaining 101,300 MT set for 2018/19 shipment. There was also a sale of 117,000 MT for 2018/19 to Panama reported through the USDA’s daily reporting system. The 6-10 day outlook is forecasting above average temps and precip in most of the Corn Belt. China sold 739,954 MT of corn from state reserves, totaling 18.64% of the offered amount.
India maize acreage down 22.6% on year at 491,000 ha so far.
U.S corn exports weak-WoW.
South Korea halts sale of Canadian wheat, flour after Alberta GMO discovery announced.
Indonesia ups use of corn hybrid seed.
Russia keeps exporting corn at a fast pace.