Ram Gopal Yadav

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.

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

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.

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.