Maize Prices Trade Steady to Weak as New Crop Arrivals Anticipated

New Delhi, June 03 (CommoditiesControl): Maize prices have shown a steady to weak trend across major centers in India, with a decline of INR 20-30 per quintal. Buyers are cautious, anticipating an increase in new crop arrivals in the coming days, which has tempered their purchasing activity.

Market sentiments have been further pressured by reports suggesting that the Indian government may allow the import of genetically modified (GM) maize at lower import duties, possibly even zero duty, to ease domestic supply constraints. However, these remain rumors with no confirmed details on when or how much maize will be imported. Consequently, this speculation has not significantly impacted maize prices in the near term.

Despite weak exports, domestic demand for maize, particularly from ethanol producers, remains robust, helping to balance the market and prevent significant price drops due to reduced export activity.

The new maize supply from Uttar Pradesh (UP) has yet to gain momentum. Kasganj mandi is closed due to election results and will resume arrivals on June 5. A few trolleys arrived in Kasganj yesterday, with prices quoted at INR 2160-2190 per quintal. Rake bilty traded at INR 2240 per quintal.

Bihar buyers have slowed down, with mandi prices decreasing by INR 10-15 per quintal to INR 2180-2200 per quintal as they await new UP arrivals. Despite this, supplies remain tight, limiting the potential price decline to INR 20-40 per quintal.

In Punjab, buyers have reduced their purchases from Bihar, leading to a price drop of INR 20-30 per quintal to INR 2410-2430 per quintal. Some buyers are shifting to UP maize, with prices for UP maize quoted at INR 2300-2320 per quintal. Punjab maize prices are expected to remain weak in the near term.

In Maharashtra, prices are quoted at INR 2550-2570 per quintal, down by INR 20-30 per quintal due to reduced buying from poultry players. The arrival of UP maize in Maharashtra is likely to weaken prices by INR 30-50 per quintal in the near term, although local supply constraints will prevent any significant price declines.

Other regional prices include:
- Tuticorin: INR 2520 per quintal, down by INR 10 per quintal
- Karnataka: INR 2590-2600 per quintal, down by INR 30 per quintal
- Sangli: INR 2550-2570 per quintal, down by INR 20-30 per quintal

The recent high temperatures and lack of rain in UP have raised concerns about lower crop yields, the extent of which will be clearer once the crop arrives. Major buyers are closely monitoring UP supplies and are expected to become more active as arrivals increase.

Given the current scenario, maize prices are likely to trade steady to weak in the near term. However, significant declines below INR 2050-2100 per quintal are unlikely.