Corn Prices In India Could Rise Before New Crop Arrives
Ethanol Demand Shifts Focus to Corn
Corn prices in India might see an increase before the new crop arrives in about 1.5 months. The recent drop in rice prices has led ethanol companies to shift their focus to corn, which could strengthen its demand. Corn production is ongoing in Rajasthan, Madhya Pradesh, and Maharashtra during the Kharif season, with summer corn expected from Bihar soon.Rice vs. Corn in Ethanol Production
In Uttar Pradesh, green rice is being sold to ethanol companies at USD 0,27 per kg, and offered at USD 0,29 per kg, boasting 69 percent ethanol content. Corn, with 61 percent ethanol, has seen reduced sales. This shift has led to an oversupply of corn in Madhya Pradesh, Maharashtra, and Rajasthan, prompting stockists to offload their inventories amid low buyer interest.Regional Corn Prices Remain Mixed
Currently, in Haryana and Punjab, corn from UP trades between USD 0,29 to 0,30 per kg, while corn from MP and Rajasthan is priced at USD 0,30 per kg. Prices in Multai, Chhindwara, Betul, and Ganj Suture Line range from USD 0,27 to 0,28 per kg. In Rajasthan, corn prices are steady at USD 0,28 per kg, while Haryana and Punjab markets see good dried corn at USD 0,30 per kg and moist corn at USD 0,29 per kg.Factors That Could Influence Corn Prices
The market might experience a USD 0,01 per kg rise in corn prices before the new crop arrives. Sowing in Bihar's regions such as Darbhanga, Begusarai, Khagaria, Panipat, and surrounding areas is progressing well. Despite favorable agricultural conditions, the mix of low rice prices and a slower corn market could lead to a slight uptick in corn prices in the short term.Conclusion: Staying Strategic in Corn Trading
Corn traders should take a measured approach, focusing on immediate trade needs. With the rice industry under pressure and rice mills reducing rates, corn market stability might depend on ethanol demand and the availability of old stocks. Monitoring market trends and the ethanol industry's movements will help traders make informed decisions in the weeks ahead.Click here to reach our trading platfrom CMBroker
