Maize

Corn 2016/17 world ending stocks to rise slightly to 224 MMT from the May estimate of 223.9 MMT. Trade estimates also call for the 2017/18 world ending stocks to be 196.5 MMT, up from the May estimate of 195.3 MMT.

Corn plantings totaled 127 thousands hectare (89.8% of the plan).

South Africa, exporting some 160,000 tonnes of white maize annually to Namibia, is forecast to harvest a record 15.6 million tonnes of maize in 2017, double last year output after favourable weather conditions lifted yields. The white maize futures contracts for July delivery settled at N$1,735 per tonne on the JSE commodity derivatives market last week. This was down considerably from N$5,000 per tonne just over a year ago.

Maize prices softened by Rs 5 per quintal due to muted demand from consuming industries against adequate stocks. Sluggish demand from consuming industries against sufficient stocks position mainly weighed on maize prices. In the national capital, maize declined by Rs 5 to Rs 1,410-1,420 per quintal.

NCDEX Maize futures ended nearly 2% lower today as India weather bureau revised upwards its forecast for monsoon rains this year, thereby adding to the bearish sentiment. The July maize contract on the NCDEX ended at 1,287 rupees per 100 kg, down 1.9% from the previous close. Good monsoon rains in the country are likely to boost maize production and increase supplies in domestic markets. Though prices were unchanged from Monday, overall sentiment for maize is bearish.

Corn rose for a fourth consecutive session on concerns over dry weather in the U.S. Midwest. Corn added 0.5 percent to $3.79 a bushel, having gained 1.1 percent in the previous session.

South Africa need to target Asian markets to boost maize exports this year after bumper crops at home and in neighbouring countries depressed prices and dampened demand in Africa. This season South Africa hopes to export most of its maize surplus for the first time to Asia and the Middle East, where buyers use it for animal feed rather than human consumption. South Africa is expected to harvest a record 15.6 million tonnes of maize this year, double last year output.

The good-quality crop was sold in Purnea, down 20-25 rupees from previous close, while average-quality maize was sold down 10-15 rupees. Arrivals at the market rose to 5,000 bags (1bag=100kg) from 4,000 bags on previous close. NCDEX most active June contract of rabi maize ended down 1.2% from the previous close. Mill-quality wheat was in Delhi, up 5 rupees fromprevious close. Arrivals to Delhi are slightly down.

The National Cooperative Dairy Federation of India bought 1,300 tonne maize in three lots at 1,751-1,844 rupees per 100 kg through an online auction.

The most active corn futures fell 0.27 percent to $3.72 a bushel, after gaining nearly 0.1 percent in the previous session. The government rated 68 percent of the U.S. corn crop as good-to-excellent, up from 65 percent a week earlier and above an average of analyst expectations of 67 percent.

Corn planting and emergence were both slightly behind the five-year average while the overall condition of the crop improved from the previous week. 96% of U.S. corn planted, down from 97% a year ago and down from the five-year average of 97%. USDA also said 86% of U.S. corn was emerged, down from 88% a year ago and down slightly from the five-year average of 87% emerged. Sixty-eight percent of the corn crop was rated in good-to-excellent condition, up 3 percentage points from the previous week’s 65% good-to-excellent rating.

Farmers are set to produce over 15 million tons of maize, a 50% excess of the expected yield. Maize is a staple food in South Africa and the BBC reports that it is the country biggest harvest in more than thirty years. The bumper harvest follows months of above average rainfall in January and February.

Sowing under coarse grains is about 125,000 ha, against 101,000 ha in the corresponding period last year. The rise in acreage under most crops is largely due to good rains in major growing regions of the country over the last two weeks. Betting on good monsoon rains, the agriculture ministry is targeting food grain production at an all-time high of 280 million tonne in the new crop year that starts June, higher than this year record of 273.4 million tonne.

Maize futures on the NCDEX ended slightly higher due to firm demand from stockists for the superior quality crop. The current month contract of rabi maize ended up 0.2% from the previous close. In spot markets, prices of the coarse grain remained unchanged. In Purnea, Bihar, the superior quality grain was sold at 1,220-1,225 rupees per 100 kg, while the low-quality variant was quoted at 1,100-1,120 rupees per 100 kg. With improving weather conditions, supply of superior quality maize is increasing.

Sowing of spring grain and pulses crops had been completed at 7079 thousand hectares, or 98% of the plan. Last year by June 01 Ukrainian farmers carried out sowing at 7183 thousand hectares. This includes spring wheat which had been sown at 173 thousand hectares (97%) against 166 thousand hectares in 2016, spring barley – 1564 thousand hectares (95%) against 1816 thousand hectares in 2016, corn – 4442 thousand hectares (99%) against 4391 thousand hectares.

Maize prices remained unchanged in Purnea, Bihar, with good quality grain sold at 1,220-1,225 rupees per 100 kg and low quality at 1,100-1,120 rupees per 100 kg. With improving weather conditions, supply of good quality maize is increasing. On NCDEX, most active June maize contract ended almost flat at 1,301 rupees per 100 kg.

Trading activity in Bulgaria grain market remains sluggish. The corn market is flat. The demand is weak both from traders and millers. Despite the price decline in the domestic market, export prices for Bulgarian corn somewhat strengthened following the world market. Bulgarian traders continue working with old-crop wheat, though this season exportable inventories have run out. Bulgaria exported 3.95 MMT of wheat by May 19. Bulgaria continues supplying small volumes of wheat both to the EU market and beyond its borders.

Showing 432.75 million bushels were crushed during April. That is down 6% from March, but 8% larger than the previous April. This morning EIA report showed average daily production of 1.02 million barrels, up 10,000 barrels per day from the previous week. Ethanol stocks rose just 79,000 barrels to 22.763 million barrels. The monthly EIA report showed 1.037 million barrels per day average production during March, up 11,000 barrels per day from February. Analysts are estimating the USDA will announce 450,000-650,000 MT for old crop corn sales in the Friday edition of the Export Sales report, with 0-200,000 MT for new crop.

Corn futures posted gains of 5 to 5 1/2 cents in the nearby contracts. Lower than expected crop ratings were supportive of buying, along with month end position squaring. Most of the Corn Belt states were behind their respective averages for planting and emerged corn, with IA edging slightly higher. Individual state ratings show IN at 43% g/e, with IL 52% and OH 49%. The WCB states were in better condition as expected with NE at 76% and IA at 73% good or excellent.

Maize prices were unchanged in the benchmark market of Purnea in Bihar as there was no major change in demand or supply of the coarse grain. Mill quality maize was sold at 1,225-1,230 rupees per 100 kg in Purnea. Arrivals of the coarse grain were at 5,000 tonne, also unchanged from previous close. The prices are expected to decline as demand from feed makers is low after the quality of the crop took a hit due to the recent rains in Bihar. On the NCDEX, maize futures followed the trend in spot markets and ended down. July contract ended down 0.2% from the previous close.