Maize (corn) prices gained marginally on Friday in line with the rise in corn prices in the global market. Corn futures soared on Thursday following reports of tight supplies by the US Department of Agriculture (USDA).
In its monthly crop report released on Thursday, the USDA estimated the corn crop to be 10.706 billion bushels (of 25.40 kg each), down slightly from the 10.727 billion bushels it projected last month. The harvest would be the nation's smallest in six years. Corn yield has been trimmed to 122 bushels a hectare from 122.8 bushels a month ago. That would mark the lowest yield in the US since 1995.
With US corn production down for the third year in a row, usage will be tightened tremendously. Exports are forecast at 1.15 billion bushels in 2012-13, the lowest in 37 years. Meanwhile, corn imports are forecast at 75 million bushels, three times the average.
This projection of unusual tight supplies and lower yield and acreage has sent prices north. US corn futures on the CBOT surged more than 5 per cent to a three-week-high on Thursday. CBOT December corn futures gained 38-1/4 cents, at $7.75/bushel.
On the NCDEX, maize for October delivery crept up 0.14 per cent to Rs 1,396 a quintal. November and December contracts inched up by 1 per cent each to Rs 1,308 and Rs 1,336.
In the spot market at Davangere (Karnataka), maize was quoted at Rs 1,408.35 a quintal.