Maize spot prices remain stable as imported corn still awaits discharge at Kandla

Pune: Imported corn that arrived in India in late Februbary 2016 is awaiting discharge, following the Methyl Bromide re-fumigation at Kandla port. As market awaits the receipt of the cargo, spot prices have more or less remained stable. From last week of February to first week of March, the prices moved up slightly, said Amit Sachdev, US Grains Council representative for India, Bangladesh and Sri Lanka.

"Nizamabad up 0.41% at Rs.14614/tonne, Davangere up 0.51% at Rs.14900/tonne; Karimnagar stable at Rs.14550/tonne; Sangli down 1% to Rs.14750/tonne, which indicates that the market awaits the arrival of maize in Bihar. Future trade from Bihar continues with contracts being done for April/May 2016 deliveries at Rs.14500-14750/tonne," said Sachdev in his recent report on corn.

He added, "There have been some rains in some of the corn belts, not major harm done, but that could delay the harvest by a few days. The high day time temperature would also mean early maturity. Future price however have moved up in the last two weeks due to weather and sentiments."

In the US however, the future prices have been down from second week of Feb 2016 and have been stable during last week. The market may have found the bottom as of date as the market also await the World Agricultural Supply and Demand Estimates Report (WASDE) report this week. The downtrend on the CBOT has helped the FOB prices to also soften and currently indicated at $159 /tonne (FOB US Gulf); $168/tonne (FOB PNW).

The freight rate from US to the market has been low and the market may have found a bottom here as well. There’re more ships in the market and this is leading to more supply than demand. Overall, between $14 – 25/tonne trade is good, but not enough to fulfill the supply. Benchmark US Gulf-Japan down to $22.75/tonne; PNW-Japan down to $13.25/tonne; US Gulf-China $21/tonne; PNW-China $12.25/tonne; Argentina-Brazil-China ranging.