Maize prices continue to soar on slow arrivals: USGC

In India, maize prices continued to increase up to Rs 16,283 per tonne during last week as arrivals dried up and deliveries were scarce, according to US Grains Council.
Maize prices reached a high of Rs 16,283 per tonne at Gulabbagh (NCDEX warehouse) in Bihar and deliveries are scarce, according to a USGC report.
At the market yards in South India, particularly in Telangana and Andhra Pradesh, prices were being quoted between Rs 15,700-15,900 per tonne and deliveries are very slow, USGC Representative for India, Bangladesh and Sri Lanka Amit Sachdev said.
In some of the market yards, he said, the deliveries stopped some 20 days back and in some, like Badepally in Andhra Pradesh, the arrivals till date have been about 50 per cent of last year.

Traders hint at prices going up further, but such high prices are not sustainable for any end-users industry and the demand will drop, which will bring down the prices and arrivals may increase.
That too also may not be good as lower prices could spur the demand and cause panic buying, Sachdev said.

As the Rabi sowing started on a good note, especially in Bihar, and higher prices will help farmers decide to sow corn, lower rains during Rabi season could be a damper.
Spot prices of corn were up, Nizamabad up 2.19 per cent to Rs 15,718 per tonne, Davanagere up 1.19 per cent to Rs 15,575 per tonne, Karimnagar up 2.42 per cent to Rs 15,533 per tonne, Sangli up 1.25 per cent to Rs 16,200 per tonne and Gulabbagh up 3.47 per cent to Rs 16,283 per tonne.

However, future prices of maize on NCDEX closed lower than previous week, primarily on news of better sowing at the beginning of the season, December contract was down 0.38 per cent at Rs 15,810 per tonne, January down 1.11 per cent at Rs 16,050 per tonne, February down 1.81 per cent at Rs 16,290 per tonne and March down 2.48 per cent at Rs 16,530 tonne.