Maize prices across key spot markets rose due to firm demand from feed manufacturers and poultry industry.

Stocks with the bulk buyers have dried up and they will be buying the commodity aggressively as the supply crunch is likely to remain severe in coming days.

Prices are likely to rise going ahead as the rabi maize crop is seen to be smaller this year.

In Nizamabad, arrivals were pegged at 400 bags (1 bag = 100 kg), 100-150 bags lower. In Davangere, arrivals were at 400-450 bags, compared with 500 bags.

Corn futures ended the Tuesday session with most contracts 1 to 4 1/4 cents lower, seeing continued selling pressure. The average February close is $4.00 1/2 through the first 25 days, with just 3 remaining.

That would set the Spring crop insurance price. A South Korean feed importer purchased 68,000 MT of corn in a tender on Tuesday. The weekly EIA report will be released on Wednesday on the usual schedule.

Trade negotiations with China have included asking China to reduce the tariffs on US ethanol according to Secretary Perdue. CFTC data from the week of February 12 (almost caught up) showed specs flipping to a net short position of 14,693 contracts in corn futures and options.