Maize

THE Food Reserve Agency (FRA) is expected to buy a total of 154,000 x 50 kilogram bags of maize from small-scale farmers in Kabompo district in North-Western Province during this year crop marketing season. Government, through the FRA this year purchase 500,000 metric tonnes of maize from farmers countrywide for strategic food reserves of which North-Western Province has been allocated 65,000 metric tonnes. The agency last year bought a total of 164,000 x 50 kilogram bags of maize from small-scale farmers in the district out of the total target of 300,000 x 50 kg bags. But for this year, 154,000 bags are target.

Maize farmers in some pockets of Vidarbha, Maharashtra, may have to re-sow the crops, as the seeds sown in June have dried up due to scanty rains in the region.

Supplies in the benchmark Purnea in Bihar, the largest producer of rabi maize in the country, are falling. Most farmers have already sold their crops and the remaining supplies were being hit by rains. Maize futures on the NCDEX also ended higher, as supplies from the kharif crop are months away, while those from the rabi crop were getting over. The most active August maize contract on the NCDEX ended up 0.7% from the previous close. In Purnea, prices rose by 5 rupees.

The food crisis in African countries, caused by two consecutive years of drought, may aggravate further as a migratory pest, fall armyworm, has hit the maize crop in the southern regions of the continent. According to media reports, the pest has affected maize production in half of the African countries, especially in southern Africa. So far, around 1.5 million ha of land in 25 African countries has been infected by the pest which mostly attacks rice, wheat, sweetcorn, sorghum, soybean, and potato crops other than maize. Fall armyworm is believed to originate from America and was first detected in Africa in 2016. Higher demand for maize from Africa may lift the prices in global markets and may make imports less viable for India.

Maize prices rose in Bihar Purnea market due to firm demand amid low arrivals. Good-quality maize was sold in Purnea up 10 rupees from the previous trading day. Prices have risen by 50 rupees in the last five days as very less crop is left in the market now. Average arrivals have reduced to 10-15 trucks (1truck=15tonne), against an average of around 400 trucks in the peak season.

Higher on technical buying and short-covering, and on fears that hot and dry conditions in the northern U.S. Plains might spread into the northwest portions of the Corn Belt.

FOOD Reserve Agency (FRA) has designated to sell 100,000 tonnes of maize from the national strategic food reserve during the 2016/17 season to create space for the commodity to be purchased later this year. Zambia is expected to harvest 3.6 million tonnes of maize this season but FRA only buy 500,000 tonnes of maize and 2,100 tonnes of paddy rice during the 2017/18 crop-marketing season.

The National Cooperative Dairy Federation of India will buy 1,300 tonne maize through a reverse electronic auction on Thursday.

Prices of wheat and rice were down in spot markets ahead of the rollout of goods and services tax at midnight. Rice buyers are cautious of the impact it would have on market demand. The new tax regime does away with value added tax, sales tax and inter-state movement tax on wheat but imposes 5% tax on branded flour and branded rice.

ZAMBIA has signed grain export trade deals for 400,000 metric tonnes worth US$100 million with Eastern Africa.

Corn futures on the Chicago Board of Trade closed higher, supported by surging U.S. wheat futures and a softening dollar. CBOT July corn settled up 3 cents at $3.59-3/4 per bushel, with new-crop December up 3-3/4 cents at $3.80. Forecasts called for warmer temperatures in the Midwest after the Fourth of July holiday, but rains in the next seven days should recharge soil moisture in central and southern portions of the crop belt. USDA reported export sales of U.S. corn in the latest week at 384,500 tonnes (old and new crop years combined).

Maize prices rose in the key wholesale Purnea market in Bihar due to declining supply. Good quality grain was sold up 10 rupees from previous close. Maize arrivals from the rabi crop are declining in key wholesale markets as the harvesting has ended and most of the farmers have sold their crops. In the benchmark Purnea market, supplies have been reduced to nearly 1,000-1,500 tonne daily, lower than the average 2,000 tonne last week.

The National Cooperative Dairy Federation of India on Friday bought 3,000 tonne maize in two lots at 1,258-1,290 rupees per 100 kg through an online auction. The commodity, which is used as cattle feed, was bought on behalf of the Karnataka Milk 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.

The IGC forecast the 2017-18 global corn crop at 1.025 billion tonnes, down one million tonnes from last month estimate and well below the prior season 1.069 billion. Downward revisions for corn crops in China (213.2 million tonnes from 215.2 million) and the European Union (60.2 million from 61.0 million) were partially offset by an improved outlook for production in Argentina (41.8 million from 39.8 million).

Canadian farmers seeded 3.6 million acres of grain corn in 2017, for an increase of 7.5 per cent from 2016. Manitoba set a new record for grain corn planted with 410,000 acres seeded this spring, an increase of 18.8 per cent from last year.

Government crop estimates committee said the size of the expected commercial maize crop was unchanged at 15.6-million tonnes. Of that, 9.5-million tonnes would be white maize and the rest the yellow variety. Industry expectations are for a 4.2-million tonne exportable surplus for both white and yellow maize. About 2-million tonnes will be exported, while the rest of the stocks will carry over to the next marketing year.

North Dakota farmers have sold a lot of corn, but the amount of crop left after last year record production could wreak havoc on local prices. The U.S. Department of Agriculture estimated in March that 215 million bushels of corn were being stored on farms in the state.

Korea Corn Processing Industry Association (KOCOPIA) purchased about 60,000 tonnes of corn expected to be sourced from South America in a tender which closed on Tuesday. The corn was purchased at about $177.50 a tonne c&f including surcharge for additional port unloading. Seller was trading group Midstar. The corn was for arrival around October 15.

Elevated temperatures (2-4ºС above normal) were observed in the country last week. The average daytime air temperature was within 19-31ºС. Moisture supply available to corn plants (0-100-cm soil layer) is at good and fair levels almost all over corn growing regions. Local shortages are reported in the south-west and south-east. Excessively hot weather (32-35ºС) is expected in the country key growing regions this week. It may damage corn crops.

Prices of maize rose in the key wholesale market of Purnea, Bihar, because of a fall in the arrivals. The coarse grain was quoted up 10 rupees from the previous day. Around 500 tonne of maize arrived in Purnea, down from 700 tonne previous close, as recent rains in Bihar have hit transportation. Futures contracts of maize also traded slightly higher tracking the spot market. The most-active July contract of maize on the National Commodity and Derivatives Exchange traded up 0.2% from the previous close.