Domestic demand from the poultry users as well starch industries remained good and traders as well as stockists were active to marshal their stocks to the market as progressive monsoon brought hopes of good crop production.
Trade source as well as ministry of agriculture expecting 20-21.5 million tonnes of maize production for 2011-12 season on hopes of increase in acreage due to better price realization by farmers in previous year marketing season.
Reportedly, continued higher moisture content in maize as well as low quality arrivals at Bihar markets (due to heavy rains from the couple of weeks) fetching at a discount while buyers are unwilling to procure the same which is weighed on the prices (Rs. 950-960 per quintal).
As per sources, export activity in maize mostly remained subdued in the market due to poor overseas demand particularly from Indonesia where corn production in 2010-11 is estimated higher at 8.4 MMT against 6.9 MMT last year.
Trade sources expect that any rally in global corn prices will benefit Indian exporters as Indian domestic prices have always been lower than international prices and for stock coming from the United States to the south-east Asian market, there is a big freight component.
Shipping costs from India to Asian buyers like Indonesia and Malaysia are typically around US$ 30 per tonnes whereas from the United States, the cost can be double. Indian traders are quoting around $280-290 per tonnes for corn free on board (FOB) currently, down slightly from $304-305 per tonnes in January and February.