Maize prices dip on increased imports: USGC

Corn prices have shown weakness during last week in the futures as well as the spot markets on reports of the government allowing imports, according to the US Grains Council (USGC).
"The actual users have been urging the government to allow import of maize as the prices are high as the average delivered prices reached Rs 18,500 per tonne in some centres," USGC Representative for India, Bangladesh and Sri Lanka, Amit Sachdev said.
"There has been some agreement that tariff-rate quota (TRQ) may be allocated to state-run trading company PEC to import 500,000 tonne of maize and this has led to some stability in the market and prices did drop in the futures as well as the spot markets," Sachdev added.

However, the drop in price was not much (0.46 per cent) to Rs 15,655 per tonne and this could be temporary correction.
In Nizamabad prices were up by 2.59 per cent to Rs 17,328 per tonne, in Karimnagar up 2.66 per cent to Rs 17,366 per tonne, Sangli up 0.54 per cent to Rs 18,600 per tonne and Davangere down 0.14 per cent to Rs 17,650 per tonne.
Futures contracts were down by 5 per cent, the July delivery was down by 5.16 per cent to Rs 15,620 per tonne, August delivery down 5.17 per cent to Rs 15,960 per tonne, September down 5.09 per cent at Rs 16,230 per tonne, October down 4.84 per cent to Rs 14,730 per tonne.

Overall sowing for maize in India is also lagging behind by 21 per cent, Sachdev said.

Overall deficiency on Monsoon in June is 11 per cent, but there is hope that there will be pickup in July and that could boost sowing, he added.
Globally, the maize prices were also weak. In the US, the prices dropped as USDA report projected that farmers have planted more corn and higher corn inventory as well.
Total corn acres planted in the US were 7 per cent higher than last year at 94.148 million acres.
This is also the third higher planting since 1944.

As on June 1, the stocks were 119.88 million tonne, 6 per cent more than last year, Sachdev said.