The National Cooperative Dairy Federation of India on Monday bought 900 tonne maize in three lots at 1,765-1,851 rupees per 100 kg through an online auction. The commodity, which is used as cattle feed, was bought on behalf of the Kerala Cooperative Milk Marketing Federation. The federation, which has nearly 200 dairy cooperatives as its members, has developed an online trading platform to purchase feed stock and sell dairy products.
Futures contracts of maize on the NCDEX were trading higher due to concerns that rains in Bihar might damage the crop. The recent rainfall in the state is likely to damage the harvested crop lying in farms. In its third advanced estimate released last week, the government pegged India rabi maize output in 2016-17 (Jul-Jun) at 6.97 million tonne, slightly higher than 6.89 million tonne estimated earlier. Total production of maize in 2016-17 is pegged at 26.14 million tonne, slightly lower than 26.15 million tonne estimated earlier. Most active June contract of maize was trading up 0.8% from the previous close.
Prices of maize were up in the key wholesale markets of Purnea, Bihar, because of strong demand for the coarse grain. Demand was high as rainfall in the state raised concerns of damage in the harvested maize crop lying in farms. In Purnea, the mill quality of the grain was sold up nearly 20 rupees from previous close. Prices of the poor-quality maize also rose by 10-20 rupees per 100 kg. Arrivals of maize in Purnea were estimated at 9,000 tonne, higher than 8,000 tonne on previous close.
Prices of maize were steady in the key wholesale market of Purnea, in Bihar, as strong demand from stockists kept prices from falling even though arrivals nearly doubled. Arrivals of maize at the market nearly doubled to 8,000 bags (1bag=100kg) from Thursday. On Thursday, rainfall in the region kept arrivals in the market subdued. Arrivals increased, but demand for maize from stockists and other states was good, and this kept price steady. On the NCDEX, the most-active June contract of maize traded up 0.6% from the previous close.
Futures contracts of maize also ended higher on the NCDEX due to concerns over crop damage following rains in Bihar. The June maize contract ended up 0.6% from the previous close. Prices of the coarse grain remained unchanged in the spot markets and good-quality maize containing 14% moisture was sold at 1,200 rupees per 100 kg in Bihar Purnea market, at 1,400 rupees in Maharashtra Jalgaon, and at 1,560 rupees per 100 kg in Telangana Nizamabad market.
Planting of spring cereals and pulses was completed on an area of 6223 thousand hactare (86% of the plan). This is 3.7% less than planted at the same time last year (6465 thousand hactare). Spring barley was sown on 1557 thousand haactare (95%) against 1811 thousand hactare in 2016. Spring wheat on 169 thousand hactare (95%) against 164 thousand hactare in 2016, oats on 197 thousand hactare (95%) against 212 thousand hactare a year ago. Peas were seeded on 379 thousand hactare (115%) that is up 67.7% year-on-year (226 thousand hactare as of May 11, 2016). Corn planting in Ukraine is 84% complete. The lag in its progress reduced to 2%. The crop was sown on 3782 thousand hactare as of the reporting date against 3861 thousand hactare at the same time last year.
New Delhi Maize prices slumped by Rs 42 in futures trading after trimming of holdings by participants, triggered by a weak trend at the physical markets. Cutting down of holding by participants amid a weak trend at the spot markets due to a muted demand led to fall in maize kharif prices at futures trade here. At the National Commodity and Derivative Exchange counter, maize kharif for delivery in May contracts plummeted by Rs 42, or 2.95 per cent, with the business turnover of 870 open lots.
Prices of rabi maize fell in Purnea, the benchmark market, because of higher arrivals. In Purnea, Bihar, maize was quoted down from the previous day. The arrivals were pegged at 150,000-200,000 bags (1bag=100kg) compared with 100,000-150,000 bags on previous close. It is the peak season for maize (rabi) arrivals in Bihar. Prices are likely to fall in the coming days due to abundant supplies. Prices, however, may rise marginally from the current levels because recent rains and thunderstorms are likely to hit the standing crop in Bihar. In Devangere, a wholesale market in Karnataka, prices fell due to sufficient supplies. The coarse grain traded down 10 rupees from the previous close. Arrivals were around 1,200 bags, up 100-200 bags from previous close.
The National Cooperative Dairy Federation of India buy 900 tonne maize through a reverse electronic auction on Monday. The commodity, used as cattle feed, will be bought on behalf of the Kerala Co-operative Milk Marketing Federation. The National Cooperative Dairy Federation of India, which has nearly 200 dairy cooperatives as members, has developed an online trading platform to purchase feed stock and sell dairy products.
Most components of the grain basket on domestic exchanges, except maize, were steady in trade. According to the government third advance estimate, India rabi maize output in 2016-17 is expected to be 6.97 million tonne, slightly higher than 6.89 million tonne estimated earlier. The country had produced 6.51 million tonne rabi maize in 2015-16. The June maize contract on the NCDEX traded down around 1% from previous close. Higher arrivals of maize due to peak season in Bihar, a major producing state, also weighed on the sentiment. The coarse grain sold in Purnea largely unchanged from previous close.
The National Cooperative Dairy Federation of India will buy 300 tonne of de-oiled rice bran and 50 tonne of maize through a reverse electronic auction on Thursday. The commodities, used as cattle feed, will be bought on behalf of Indian Immunologicals Limited. The federation, which has nearly 200 dairy cooperatives as members, has developed an online trading platform to purchase feed stock and sell dairy products.
The U.S. feed-grain outlook for 2017/18 is for lower production, domestic use, exports and ending stocks. The corn crop is projected at 14.1 billion bushels, down from last year’s record high with a lower forecast area and yield. The yield projection of 170.7 bushels per acre is based on a weather-adjusted trend assuming normal planting progress and summer weather, estimated using the 1988-2016-time period. The yield model includes a downward stochastic adjustment to account for the asymmetric response of yield to July precipitation. The smaller corn crop is partly offset by the largest projected beginning stocks since 1988/89, leaving total corn supplies down from a year ago but still the second highest on record. Total U.S. corn use in 2017/18 is forecast to decline 2 percent from a year ago as a slight increase in domestic use is more than offset by lower exports. Food, seed, and industrial (FSI) use is projected to rise 80 million bushels to 7.0 billion due to increased use of corn to produce ethanol for fuel and expected growth in non-ethanol FSI. Corn used to produce ethanol is up 50 million bushels, reflecting expectations of gasoline consumption growth, reduced sorghum used to produce ethanol, higher expected blending and continued global ethanol import demand. Projected feed and residual use declines as a smaller crop and increased use of ethanol by-products more than offsets growth in grain consuming animal units. U.S. corn exports are down 350 million bushels, as a 1.0-billion-bushel year-over-year increase in the combined corn exports of Brazil and Argentina during 2016/17 (local marketing years beginning in March 2017 and ending February 2018) is expected to cut into the 2017/18 U.S. shipping season. With total supply falling faster than use, 2017/18 U.S. ending stocks of corn are down 185 million bushels. The season-average farm price is projected at $3.00 to $3.80 per bushel, unchanged at the midpoint from 2016/17. The global coarse grain outlook for 2017/18 is for lower production, increased use and sharply reduced ending stocks. Corn production is forecast down from a year ago, with the largest declines in China and the United States. Partly offsetting are larger crops projected for the EU and Canada. Global corn use is up 9 million tons (1 percent), while global corn imports are projected to increase 7 million tons. Notable increases in corn imports include Vietnam, Egypt, the EU, Saudi Arabia, Mexico and Iran. Global corn ending stocks are down from last year’s record high and if realized would be the lowest since 2013/14. The drop largely reflects forecast declines for China and the United States. For China, total corn supply is down 14 million tons in 2017/18, based on projected declines in beginning stocks and production. Area is reduced based on planting intentions published by the National Bureau of Statistics. On the demand side, feed and residual use is expected to increase based on continued relatively low internal market prices, efforts by the government to promote use of domestic supplies and reduced imports of corn substitutes. Projected FSI use is higher based on expectations of growth in domestic use and exports of corn-based industrial products.
India rabi maize output in 2016-17 (Jul-Jun) is expected to be 6.97 millionn tonne, slightly higher than 6.89 millionn tonne estimated earlier. The country had produced 6.51 millionn tonne rabi maize in 2015-16. The rise in output this year can be attributed to higher acreage and improved yield. Arrivals of rabi maize are at their peak in the major producer Bihar and about 0.1 million bags (1bag=100kg) arrive in the Purnea market daily.
The June contract of maize on the NCDEX was up nearly 1% as investors continued covering their short positions after prices hit a more than one-month low on previous close. The June contract was up 0.8% from the previous close. In Bihar benchmark market of Purnea, maize was sold down 5-10 rupees from the previous day. Around 0.15 million bags (1bag=100kg) of maize arrived in Purnea and arrivals are expected to rise further till the end of May. Rabi maize prices in Telangana benchmark Nizamabad market also fell amid subdued demand from the poultry feed industry.
Celeres is projecting total Brazilian production at 97.71 MMT, up from the drought depressed 73.89 MMT last year. The trade average is 94.23 MMT according to composite of several surveys. The average to 2017/18 corn ending stocks is 2.189 billion bushels, but the range is all over the place at 1.8 to 2.5 billion.
The National Cooperative Dairy Federation of India buy 600 tonne tuesday and 3,300 tonne of maize through a reverse electronic auction on Wednesday. The commodity, used as cattle feed, will be bought on behalf of Rajasthan Cooperative Dairy Federation. The federation, which has nearly 200 dairy cooperatives as members, has developed an online trading platform to purchase feed stock and sell dairy products.
Prices of maize fell in Bihar benchmark Purnea market as arrivals are at their peak. About 100,000 bags (1bag=100kg) of maize arrive in Purnea daily and arrivals are likely to continue till the end of this month. The coarse grain was selling down 20-25 rupees from previous close. Maize futures on the NCDEX also fell and the most active June contract ended down 0.8% from previous close.
Maize rabi prices drifted lower by Rs 20 per quintal in futures trading after speculators shrank their holdings amid a weak trend at the physical markets on subdued demand. Tracking a weak trend at the spot markets on low demand from poultry feed makers, led to the fall in maize prices at futures trade. NCDEX maize for delivery this month dipped by 1.51 per cent per quintal, in an open interest of 170 lots. Maize for delivery for most-active June contracts fell by 0.76 per cent per quintal, having an open interest of 8,220 lots.
Maize prices fell on the NCDEX, taking cues from losses in spot markets. The most active June contract ended down 0.1% from the previous close. Prices fell in spot markets due to subdued demand for the coarse grain from major poultry and starch feed firms. In Nizamabad, maize was sold down 10-15 rupees from previous close.
Bihar has raised its output estimate for 2016-17 (Jul-Jun) to 1.72 million tonne from 1.66 million tonne. The state estimate for kharif maize output is 672,848 tonne, and that for the rabi crop is 1.05 million tonne. A nearly 4% upward revision in the state maize output estimate can be attributed to a rise in yield to 2,526 kg per ha from the earlier view of 2,286 kg.