Maize Market Sees Mixed Trends as Active Stocking and Increasing Arrivals Influence Prices

New Delhi, November 6 (Commodity Control): Maize prices across major Indian markets held steady with a slight negative bias today due to rising arrivals. Although the increased supply has put downward pressure on prices, active stocking by major companies—particularly in Sangli, Maharashtra—has limited the extent of the decline.

In Sangli mandi, the price of maize rose by ₹25 per quintal to a range of ₹2350-2425, driven by an influx of approximately 600 tons. High-quality maize saw an increase of ₹20 per quintal, while average-quality maize prices remained unchanged. A prominent Maharashtra-based poultry company has initiated strategic stocking of high-quality maize, a move that has sustained price levels for premium grades. Despite this, most traders have yet to engage in significant stocking, remaining cautious about the direction of the market.

Analysts suggest that high-quality maize prices may have reached their lowest, with Sangli rates projected to stay rangebound within a ₹20-40 per quintal range. Support from active stocking is expected to counterbalance price pressure from continued high arrivals. Price recovery is likely in the coming weeks as arrival volumes normalize and aggregate domestic demand surpasses last year’s levels.

Market Stability in Other Key Centers
Jalgaon saw stable spot maize prices, with warehouse rates holding firm at ₹2300 per quintal. Export demand from Mumbai remained consistent at ₹2350-2375 per quintal, while loose mandi rates stayed steady at ₹1950-2025 per quintal, accompanied by arrivals of 1,000 tons at Amalner mandi. Arrival pressures here could push prices down by ₹20-30 per quintal, but prices are unlikely to dip further due to active warehouse stocking at most locations, where prices remain within the ₹2300-2350 range.

In Karnataka, robust arrivals—estimated at 20,000-22,000 MT—have kept mandi prices steady at ₹2250-2320 per quintal. Some multinational companies have initiated purchases at ₹2325-2350, and rake loading in Bagalkot has started at ₹2335. Karnataka’s poultry producers are procuring maize at a reduced rate of ₹2475-2600 per quintal, following a ₹50 per quintal dip attributed to variations in payment terms. Meanwhile, ethanol and starch companies in Karnataka are buying at ₹2300-2450 per quintal, experiencing a softening of ₹25-50 per quintal in response to increased arrivals.

Poultry Demand in South India Reflects Price Adjustments
South India’s poultry sector has also adjusted its rates. Andhra Pradesh poultry buyers are procuring maize at ₹2575-2675 per quintal, marking a ₹25 decline, while Telangana’s poultry sector is purchasing at ₹2525-2625 per quintal, also down by ₹25. While increased arrivals in Telangana and Andhra Pradesh have led to more inquiries at these adjusted prices, Karnataka continues to see favorable arrivals, ensuring sufficient supply for Tamil Nadu and Karnataka markets.

Eastern and Western India Display Resilience Amid Supply Constraints
In Eastern India, particularly Bihar, maize prices have remained firm at ₹2580-2650 per quintal, underpinned by robust demand despite dwindling dry maize supplies. The current outlook suggests that prices in Eastern India, especially for high-quality maize, may stay stable or see only a marginal decrease of ₹20-40 per quintal, regardless of rising arrivals.

In a related development, Myanmar’s maize trading price is currently at USD 292 per ton CFR, with a vessel each expected in Kolkata and Vizag in November, adding 26,000 tons to the market. However, Burma's limited stock and hesitancy to sell at prevailing prices have led to the cancellation of many import transactions.

Outlook
Overall, as arrival pressures ease and stocking activity increases, maize prices across South, Central, and Western India are anticipated to decline only marginally by ₹30-50 per quintal. The broader price outlook remains positive, with demand expected to exceed last year’s levels. Experts suggest that waiting for a few more days before initiating large-scale stocking may be beneficial as arrivals peak and market dynamics stabilize.