Higher US output and a less lucrative exports market may keep a check on the domestic maize prices this season. | |
| This is contrary to earlier market expectations that exports may create a shortage in the domestic market, pushing the prices up. |
| |
| It was expected that around 7-8 lakh tonnes of maize will be exported. However, according to trading sources, despite good inquiries, actual booking was far less and exports till date was not more than 2 lakh tonnes. Sources in the maize industry said that higher prices, owing to rupee appreciation, hit exports. |
| |
| In the domestic market, prices are seen between Rs 725 and Rs 775 a quintal. This is far below the last year's level of around Rs 1,000 a tonne. "The rise in maize prices have been reasonable this season," said Kaushik Khona, chief financial officer, Gujarat Ambuja Exports. |
| |
| Starch industry has added around 1,500 tonnes per day (tpd) maize crushing capacity this year, and is likely to consume around 0.4 million tonnes more, taking the total requirement of the starch manufacturers close to 2 million tonnes. |
| |
| Demand from poultry industry, which consumes over 60 per cent of the total maize, is expected to go up as prices of soybean products used for cattle feed have moved up, said commodity analysts. "This may not let the market cool off substantially," said analyst with Angel Commodities. |
| |
| According to market sources, maize has a good support at Rs 725 a quintal. The arrivals have gained momentum and will continue for another one month. In Nizamabad (main delivery centre), arrivals are reported to be more than one lakh bags (each of 100 kg). |
| |
| Moreover, once the crop from Latin America and Argentina starts hitting the market, far eastern countries are likely to import a major chunk from there. "This will further bring maize prices under pressure," said Vimal Bengani, a Kokata-based trader. |
| |
| Meanwhile, market sources said that rabi crop was expected to be better this time. On an average, rabi crop accounts for 15-20 per cent of the total maize production in the country, which comes mainly from Bihar. |
| |
| On the National Commodity and Derivatives Exchange (Ncdex), the near month contract on Monday closed at Rs 738 a quintal, down Rs 2 from last week's close. |
| |
| COOLING OFF |
| |
| Overall maize market to remain steady with a positive bias Rs 725 a quintal seen as good support level Exports are less lucrative as global scenario presents bearish picture Starch industry's demand for maize to go up to 1.8 million tonnes, up 29% Demand from poultry expected to go up as prices of other cattle feed have moved up Kharif crop output is around 13.2-13.5 million tonnes |
| |
|
| |
