The June maize contract on NCDEX hit a record high

The June maize contract on NCDEX hit a record high of 1,955 rupees per 100 kg, due to uncertainty over imports of the coarse grain.

Prices on the exchange also gained tracking firm spot demand from feed makers. Although the government allowed import of 100,000 tn maize at a concessional duty of 15% to deal with an acute supply shortage, there is still no clarity over when they will be imported.

The June maize on NCDEX was at 1,950 rupees per 100 kg, up 0.8% from the previous close. Prices in the spot markets too rose sharply today as bulk buyers stepped up their purchases as the new crop arrivals in Bihar started drying up. Bihar is the largest grower of maize in the rabi season.

In Purnea, maize was sold at 1,970-2,030 rupees per 100 kg, up 15-20 rupees from previous day. Arrivals were pegged at 40,000 bags (1 bag = 100 kg), steady from previous day.

Corn had posted the biggest advance of the three commodities on a percentage basis earlier in the day, as forecasts called for rains to return to the US Corn Belt this weekend and next week, after a few dry days. But corn also ended the day nearly flat, as funds wrestled with hedging their risks.

The wheat market also continued to be pressured by a US Department of Agriculture (USDA) report that showed 64 percent of the US winter wheat crop was in good-to-excellent conditions, which bolstered expectations for a bumper harvest adding to an already ample supply base.