Maize

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.

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.

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.

Maharashtra’s State Co-operative Marketing Federation along with Adivasi Vikas Mahamandal will start procurement of maize, paddy, jowar, bajra and other coarse cereals on behalf of Food Corp of India. Procurement of paddy (in Maharashtra) will start from now, while that of maize, jowar and bajra will commence from Nov 1. The government will procure fair average quality common paddy variety at 1,750 rupees per 100 kg and grade “A” variety at 1,770 rupees per 100 kg. Procurement of maize will be at 1,700 rupees, bajra at 1,950 rupees and jowar hybrid variety at 2,430 rupees and Maldandi variety at 2,450 rupees per 100 kg. The registration and buying of the farmers’ produce will be done online through NCDEX e-Markets Ltd, formerly known as NCDEX Spot Exchange Ltd. Output of kharif rice in the country in 2018-19 (Jul-Jun) is estimated at 99.24 mln tn, up 1.8% on year, kharif maize output is forecast at 21.47 mln tn, up 6.1%, while that of kharif jowar is estimated at 1.88 mln tn, down from 2.10 mln tn in 2017-18.

Spot price of maize in key Davanagere market in Karntaka was steady at 1,400-1,450 rupees per 100 kg. Demand from bulk buyers is limited because of less availability of good quality crop. Currently, maize prices are stuck in a range as buyers are waiting for fresh crop arrivals to begin, which could exert pressure on spot prices.

They closed with most contracts 1 to 2 1/4 cents higher supported by gains in the wheat complex. Trade Ministry data shows Brazil’s September corn exports at 3.424 MMT, up 18.11% from August but down 42.12% from last year.

Maize production is expected to cross 30,000 tonnes this year. Maize was sown in 13,000 acres in Khammam and Bhadradri districts and the extent of the irrigated dry crop is increasing by the year. Farmers at large in Mudigonda, Kusumanchi, Bonakal, Errupalem and Chintakani mandals in Khammam district and Allapalli, Sattupalli, Yellandu, Tekulapalli, Mulakalapalli and Chandrugonda mandals in Bhadradri district opted to sow maize. The crop is now at harvesting stage and his is creating tension among the farmers as they remember the horrible experiences of last year. Delayed lifting led to crop getting damaged in the fields due to rains last year. The resultant losses were put at around Rs 5 crore. The delayed lifting also forced farmers to stay at the lifting centres over three days or more. Private traders, who cashed in on the the situation, bought the damaged maize at throwaway prices.

Corn futures saw 2 to 3 1/4 cent gains in most front months. Export Inspections report from the USDA showed 1.263 MMT in corn shipments during the week of September 20. That was up 21.95% from the week prior and 61.97% larger than the same time last year. 72% of the US corn crop was mature as of 9/23 (avg. 53%), with harvest listed as 16% complete (avg. 11%).

Area under kharif maize in India was just 0.1% lower on year at 7.9 mln ha. Maize acreage in the country was higher than the normal area of 7.4 mln ha for the season, which is based on the average of last five years. Sowing was higher on year in key growing states of Karnataka, Madhya Pradesh, Rajasthan, Uttar Pradesh, and Telangana, while it was down in Maharashtra, Bihar, Jharkhand, and Haryana. Acreage was also higher in states like Andhra Pradesh, Telangana, and Karnataka, despite reports of armyworm pest attack in some pockets of these states. Announcement of higher minimum support price by the Centre for maize encouraged growers to bring more area under the coarse grain in top producing states. However, patchy distribution of monsoon rains led to a fall in acreage in some regions.

Some 17.74 million tonnes of Ukrainian maize was exported in the 2017/2018 marketing year.

The effects of a summer drought have continued to weigh on crops in the European Union despite less severe conditions in the past month. Persistent dryness, which has hurt crops and parched grasslands across northern Europe, also poses a risk for the rapeseed that has just been sown for next year’s harvest. Forecast of the EU’s 2018 grain maize yield to 7.49 tonnes per hectare (t/ha) from 7.57 t/ha estimated last month.

JAPAN’S USE OF CORN IN ANIMAL FEED RISES IN JULY. Japan’s use of corn in animal feed rose to 48.1 percent in July from a year earlier.

A fresh problem in the form of Fall Armyworm, or Spodoptera frugiperda, threatens farmers across the country this kharif season. Currently infesting the maize crop, agricultural scientists warn that this pest could soon spread and attack other crops, including cotton, sorghum, sugarcane, cabbage and soyabean. This pest, which reportedly entered India from Africa, could result in huge economic losses if not attended to in time. From Karnataka where it was reported first, it spread to Telangana and Andhra Pradesh. Telangana is among the hardest hit, with the Fall Armyworm extensively affecting the maize crop in 17 out of 30 districts.

Area under maize in India was 0.2% higher on year at 7.9 mln ha. Maize acreage in the country was higher than the normal area of 7.4 mln ha for the season, which is based on the average of last five years. Sowing was higher on year in key growing states of Karnataka, Madhya Pradesh, Rajasthan, Uttar Pradesh, and Telangana, while it was down in Maharashtra, Bihar, Jharkhand, and Haryana. Acreage was higher in states like Andhra Pradesh, Telangana, and Karnataka despite reports of armyworm pest attack in some pockets of these states. The India Meteorological Department had given timely advisories to maize growers in these states to curb the spread of pest attack.

Prices of maize in Purnea, a key market in Bihar, eased by around 4 rupees from previous close to 1,321 rupees per 100 kg amid steady arrivals of around 2,000 tn. Spot price of the coarse grain eased after rising in the last few sessions on the back of good demand from poultry and starch sector. Expectation of higher maize production in Karnataka, a key growing state, weighed on prices. Karnataka has pegged its maize output for 2018-19 (Jul-Jun) at 3.53 mln tn, up 26% on year.

In thin trade, maize prices hardened by Rs 20 per quintal at the wholesale grains market due to pick up in demand from consuming industries. Mill demand from consuming industries led to rise in maize prices. In the national capital, maize rose by Rs 20 to Rs 1,360-1,365 per quintal.

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.