Maize prices rose during initial trade at local bourse on Monday amid positive sentiment as demand for the grain from feed sector is seen firm. On the other side, corn futures fell at Chicago Board of Trade (CBOT) today on easing concerns over dryness in the main maize producing belts of Midwest in the USA. Corn prices lost gains amid pressure on crude oil prices and improving weather condition, according a commodity market analyst.
In fact, corn is used for producing alternative fuels, therefore, there seems impact of movement in crude oil on the prices of corn in the international market.
Since, India has a record maize crop this year, there is least chance of its imports. Therefore, movement in maize prices in the domestic market are largely controlled by local demand and supply as maize is mostly consumed by feed sector in India. As per the trade sources, there is good physical demand for maize in the key spot markets of Bihar and Punjab.
As per the third advance estimates released last month, India’s maize production is at 261.4 lakh tonnes in the crop year 2016-17, all time high and bigger than the target fixed at 245 lakh tonnes. As per the government figure India’s maize output was at 225.7 lakh tonnes in the corresponding last crop season.
By 1039 IST, July delivery Rabi maize future contract was Rs. 13 or 1 percent up at Rs. 1,311/100kg while it opened a tad lower with Rs.1,295/100kg at National Commodity and Derivatives Exchange Ltd (NCDEX).
Similarly, August delivery maize contract was also Rs. 13 or 0.98 percent higher at Rs. 1,335 while it opened at Rs. 1,328 and moved up to Rs. 1,337/100kg during initial trade at local bourse.
By 0459 GMT, corn futures for delivery in July rose 1.04 percent to trade at $ 3.80 a bushel on the CBOT.