Maize

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.

In Purnea, the cattle feed quality of maize was sold down 10 rupees the previous day. Mill quality maize was sold down 5-10 rupees per 100 kg. Because poor demand for the coarse grain after rains hit the state. Prices fell due to low demand from industrial feed makers, as quality of the crop deteriorated after recent rains in Bihar. In line with spot markets, maize futures also fell on the NCDEX. The most active June contract was trading at 1,293 rupees per 100 kg, down 0.3% from the previous close.

Lower on drier-than-expected conditions in the U.S. Midwest and improving forecasts for the coming week. Trade continues to debate how much U.S. corn will need to be replanted following widespread rains this month. CBOT July corn was last down 2-3/4 cents at $3.71-1/2 a bushel.

The national corn crop was 73% emerged, last year was 75%. The initial corn condition rating was released, with 65% of the crop at good/excellent vs. last year 72%. The Brugler500 index puts the rating at 365 vs. 379 last year.

USDA corn export 1.195 MMT for the week ending May 25. That is an improvement of 2.28% over last week and 51.9% above the same week last year. With the short week, the EIA weekly ethanol report will be released on Thursday.

Ukraine exported 40.11 MMT of grains in 2016/17 by May 24, or 11.6% more than shipped abroad at the same time a year ago (35.95 MMT). Included 16.54 MMT of wheat (+8.1% year-on-year), 18.19 MMT of corn (+12.3%) and 5.15 MMT of barley (+21.3%). In the same period, exporters also shipped abroad 330 KMT of flour, including 328.6 KMT of wheat flour and 1.3 KMT of flour from other cereals.

Maize prices also fell in spot markets of Bihar as arrivals have increased but demand is weak due to low quality of crop. Cattle feed quality of the grain was selling down 15-20 rupees from previous close. Higher sowing dragged rabi maize futures down on the NCDEX and the most active June contract ended down 1.1% from previous close.

Maize was sown over 25,000 hectare in Karnataka, more than thrice the 7,000 hectare sown in the year-ago period. Karnataka is one of the largest kharif maize producing states in the country. Farmers in Tamil Nadu planted maize over 1,000 hectare, unchanged from previous year. Maize sowing is likely to rise further with the onset of the southwest monsoon. According to IMD officials, the monsoon is likely to hit Kerala on Tuesday.

Active August contract of rabi maize traded down 0.8% from the previous close. The July contract traded 0.4% lower. Prices fell in the spot market because of rise in supplies. In the benchmark market of Purnea, Bihar, the grain was quoted down 10 rupees. Arrivals of the grain were pegged at 4,000 tonne, compared with 3,000 tonne on previous close. Arrivals have gained pace again now, after the rains and demand is also good for the fresh arrivals in markets.

The National Cooperative Dairy Federation of India bought 500 tonne maize at 1,844 rupees per 100 kg and another 350 tonne at 1,754 rupees per 100 kg through an online auction. The commodity, which is used as cattle feed, was bought on behalf of the Kerala Co-operative Milk Marketing 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.

South Africa will likely harvest a record 15.6 million tonnes of maize in 2017, double last year output after favourable weather conditions lifted yields. The fourth production forecast for the season, which is almost 6% higher than market expectations of 14.73 million tonnes, will be the largest crop since 1981 which reached 14.656 million tonnes. The staple white contract for September fell 2.35% to R1,794 per tonne, about 65% lower than its record of over R5,200 in January last year. The forecast may further depress maize prices, which will help break inflation and food prices while cutting the margins for farmers.

Corn futures on the CBOT traded higher as rains in the US have posed a threat to the yield of corn, in addition to fears that sowing may be hampered. July corn contract on the CBOT was at $3.73 a bushel, up 0.5% from the previous close.

Maize futures on the NCDEX fell as concern about the weather in Bihar. June contract of rabi maize ended down 0.4% from the previous close. Prices of the coarse grain in spot markets remained unchanged.

The National Cooperative Dairy Federation of India bought 46 tonne maize at 1,481 rupees per 100 kg through an online auction. The commodity, which is used as cattle feed, was bought on behalf of the Sabarmati Ashram Gaushala. 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.

In Purnea, rabi maize was sold up 10-15 rupees from previous close due to amid high demand from the poultry feed industry after recent rainshit supplies. Around 3,000 tonne of maize arrived in markets today, up from 2,000 tonne on previous close. June maize contract ended down 0.7% from the previous close.

Production of maize in Argentina and Brazil is expected to remain at 131-132 million tonne for the 2016-17 season, up from 96 million tonne last year, as favourable conditions are likely to boost yield prospects. Rabobank has also maintained a neutral stance on maize prices in the US, as short-term weather outlook is seen favourable for global maize crop. CBOT (Chicago Board of Trade) corn prices to remain largely range-bound, trading between $3.5 per bushel and $3.80 per bushel in the short-term, but a bullish bias remains.

The National Cooperative Dairy Federation of India buy 46 tonne maize through a reverse electronic auction on Thursday. The commodity, which is used as cattle feed, will be bought on behalf of Sabarmati Ashram Gaushala. The National Cooperative Dairy Federation of India, which has nearly 200 dairy cooperatives as members, has developed an online trading platform to purchase feed stock and sell dairy products.

Light profit-taking setback after a two-session climb tied to worries about re-planting due to excessive rains in portions of the Midwest. Most-active July corn retreated below its 100-day moving average in early moves. CBOT July corn was last down 1-1/4 cents at $3.73-3/4 a bushel.

South African record 14.73 tonnes this season with robust yields because of good rains. 2017 summer harvest 8.747 million tonnes white maize and 5.980 million tonnes of yellow variety. White maize contract ending in July ticked up 0.21 percent to 1813.80 rand.

Supported by concerns that storms in the eastern Corn Belt this week could slow fieldwork as well as flood some areas that have already been seeded, damaging recently planted crops. Most-actively traded July contract hit highest since May 4 overnight, breaking through 100-day moving average. CBOT July corn was last up 2 cents at $3.74-1/2 a bushel. The most active corn futures on the Chicago Board Of Trade rose 0.1 percent to $3.75-1/2 a bushel, having gained 0.7 percent in the previous session when prices hit a high of $3.77-1/2 a bushel.