Maize

Excessive rain damages maize crop on 40,000 acres in Punjab.

Zimbabwe maize subsidy adds $118 million to mounting debt.

Prices of maize in Purnea, Bihar rose as stocks with farmers are declining. The premium quality crop and the low-end variety both prices up 20-30 rupees from previous close. The stock of rabi maize is declining and supplies have also been hit by recent heavy showers. Demand from Telangana, Maharashtra, Madhya Pradesh and Andhra Pradesh also supported the prices.

U.S. corn shipments to Mexico are faltering and the country is no longer the biggest importer, a sign that trade tensions are driving it into the arms of other suppliers. Sales to Mexico through May were $1.04 billion, down 6.7 percent from a year earlier, the U.S. Department of Agriculture said in a monthly update. That contrasts with the 32 percent increase for the overall value of U.S. corn exports in the period, during which the average dollar value of the commodity was little changed. Japan boosted its purchases 53 percent to $1.19 billion to become the largest importer of American corn.

Supplies fell in the benchmark market of Purnea in Bihar, the largest producer of rabi maize in the country, as most farmers have already sold their crops, and the remaining supplies were being hit by rains. In Purnea, prices rose by 10-15 rupees. The most active August maize contract also ended higher on the NCDEX due to low supply in spot markets and firm demand. The contract ended up 0.4% from the previous close.

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.

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.

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.