Maize Prices Under Pressure from Increasing Arrivals Across Major Centers

Mumbai, April 4 (CommoditiesControl): Maize markets across major centers experienced steady to weak trading conditions today, with the influx of new arrivals exerting downward pressure on prices. Despite overall good crop quality and expectations of favorable grain size, the market sentiment is influenced by the surge in arrivals, prompting concerns among traders.

In Gulab Bagh mandi, approximately 1000 MT bags of new maize arrived, leading to a decline in prices by nearly INR 25 per quintal to INR 2275 per quintal. Forecasts from the Indian Meteorological Department (IMD) indicating an increase in temperatures in the upcoming week suggest a likelihood of significant rises in arrivals in the near future.

Assam maize is trading at INR 2200 per quintal, albeit with lower quality compared to the Bihar crop. Bihar maize sowing shows a substantial increase of 15-20% compared to the previous year.

Warehouse bookings have surged, driven partly by ethanol buyers seeking to stock up on maize. Despite the increasing arrivals, buyers are actively purchasing to meet their regular requirements, facilitating smooth offloading of new supplies in the mandi.

New arrivals are on the rise in Bihar, Telangana, Andhra Pradesh, and Maharashtra, with Bihar maize prices witnessing a steady to weak trend due to the mounting pressure from new arrivals.

In Amalner, new maize prices remain steady at INR 1900-2100 per quintal, with around 600 tons observed in the mandi. Chalisgaon factory delivery maize prices remain unchanged, indicating stability in the market.

Despite increasing arrivals, prices in north Maharashtra have held steady, suggesting resilience in the face of growing supply. However, a slight decline of INR 25-50 per quintal is anticipated in the near term as arrivals continue to escalate.

In Davengere, maize prices stand at INR 2300 per quintal, while in consumption markets like Bangalore, prices are slightly higher at INR 2380 per quintal, with supplies sourced from Andhra Pradesh and Telangana. Meanwhile, MP Chindwara prices maintain stability at INR 2250 per quintal.

Expectations point to a potential decline of INR 150-200 per quintal in Bihar maize prices due to arrival pressure. However, future price trends hinge on factors such as active rack indents, demand from Bangladesh, and purchasing behavior of ethanol producers.