Thursday, Apr 11, 2019

By Preeti Bhagat

NEW DELHI – Maize prices rose today because of demand from Tamil Nadu and Karnataka and due to lower arrivals, traders said.

In Davangere, Karnataka, maize was sold at 2,250 rupees per 100 kg, up 100 rupees from Wednesday, while in Sangli, Maharashtra, it rose by 30 rupees to 2,350 rupees.

Arrivals of the coarse grain in Sangli fell 75 tn to 375-450 tn.

Expectation of lower production in the second largest producer--Karnataka—-also supported the prices. Karnataka's maize output is seen falling 29.2% on year to 3.85 mln tn in 2018-19 (Jul-Jun) due to a sharp fall in yields, a senior official with the state farm department said.

Market participants expect prices to rise further next week due to increased domestic demand, said Davangere-based dealer Shiv Kumar.

In the international market, too, prices are seen positive as there is a risk of further delay in sowing of corn due to flood caused by melting snow.

"The window for corn planting is becoming smaller all the time. So far, market participants appear relaxed, as prices have reacted hardly at all to the news as yet," Commerzbank AG said in its report.

Meanwhile, both prices and arrivals of wheat were unchanged in Indore, Madhya Pradesh. The commodity was sold at 1,800-1,900 rupees per 100 kg, while arrivals were estimated at 5,000 bags (1 bag = 100 kg), said a local dealer.

"There is a lack of demand at present as people have moved to using readymade wheat flour and are unwilling to stock up. Prices will fall in the future due to pressure of new crop arrivals from Uttar Pradesh, Delhi, and Haryana," said Delhi-based trader Vikas Jain.

Wheat arrivals in India may cross 100,000 bags a day in the next 10 days from 15,000 bags at present.

However, on the Chicago Board of Trade, the most-active May contract was up 0.3% at $4.5850 a bushel (250 bushels = 7 tn) today. The rise in prices could be attributed to bargain buying after prices hit a two-week low on Wednesday.

Similarly, prices of basmati rice were steady in spot markets after rising for three consecutive days.

In Punjab, parboiled Pusa 1121 basmati was sold at 7,150 rupees per 100 kg, while steamed basmati was sold for 8,000 rupees, said local trader Bal Krishna.

However, demand for the grain is on a rise from Iran and may boost prices going ahead. India's basmati rice exports rose 6.3% on year during Apr-Feb to 3.86 mln tn, according to data from the Agricultural and Processed Food Products Export Development Authority.  End

US$1 = 68.92 rupees

Edited by Subham Mitra

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