Back

India Grain: Maize up on domestic demand, lower arrivals; wheat flat

Thursday, Apr 11

 

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

 

Cogencis Tel +91 (11) 4220-1000

Send comments to feedback@cogencis.com

.

This copy was first published on the Cogencis WorkStation

© Cogencis Information Services Ltd. 2019. All rights reserved.

Other News

INTERVIEW: Emami director says to sell assets when time is right

Friday, Aug 16 By Janaki Krishnan MUMBAI – When promoters of Kolkata-based Emami group sold 10% stake in their flagship company, Emami Ltd, in February to help pare debt and redeem their pledged shares, it was not an exercise they wished to repeat.  However, just over four months later, the promoters found themselves having to resort to another […]

Source says govt mulling multiple mergers of PSU banks at one go

Friday, Aug 16 –Source: To finalise bank mergers post meet with top govt officials–Announcing 1 PSU bank merger at a time remains an option–One merger at a time may prolong consolidation of PSU banks By Tushar Chakrabarty and Sagar Sen NEW DELHI – The government is considering the possibility of announcing multiple public sector bank mergers at one go […]

TREND: Earnings downgrade looms as Apr-Jun highlights economy’s pain

Friday, Aug 16 By Chiranjivi Chakraborty MUMBAI – Weak corporate earnings and commentary by Nifty 50 companies in the quarter ended June have exacerbated concerns about a rapidly slowing economy and likely downgrade to earnings expectations by analysts. Companies in sectors such as consumer staples, consumer discretionary, oil and gas, and metals saw sharp deterioration in their earnings […]