The arrival of new corn from Bihar’s Rabi season is stirring the market, leading to a noticeable price drop. The new corn has not yet fully arrived at the producer markets. Despite this, a preliminary decline in its price has been noted. This decline is approximately $0,009 to $0,012 per kg. There are expectations for this price to drop further. The anticipated further drop is around $0,036.
State-Specific Harvest Patterns
Corn is harvested during both the Rabi and Kharif seasons, varying by state. Recent reports indicate that 68-70% of Kharif season corn across states like UP, Madhya Pradesh, Rajasthan, Maharashtra, Andhra Pradesh, Karnataka has been harvested. Bihar is now seeing its corn crop ready for harvest across several regions, with new arrivals beginning to make their way into markets.
Market Prices and Competition
In Darbhanga Gulab Bagh, Bihar, new corn is fetching prices between $0,264-$0,27 per kg, depending on moisture content. This situation stands in contrast to the prices in Haryana and Punjab. In these locations, corn was previously selling at higher rates. The rates were around $0,003 to $0,303 per kg. The entry of Bihar’s corn into the market has had an impact. This impact has been on the prices of corn from Madhya Pradesh’s Chhindwara Multai line. As a result of this impact, the prices saw a decrease. The prices decreased to $0,297 to $0,030 from the previous $0,306 to $0,307.
Quality and Storage Implications
The high starch content and hybrid quality of Bihar’s corn make it a preferred choice for many industries, negatively impacting the demand for corn from Madhya Pradesh and Rajasthan. With old stock still present and new arrivals expected to double, the market anticipates a further reduction in prices.
Future Price Predictions
Current trends suggest a significant price drop by the end of the month, potentially reaching as low as $0,228 per kg from today’s $0,264. Despite a large production forecast and some speculation of prices hitting $0,216 per quintal, market dynamics, including high prices of other cereal commodities, make a fall below $0,228 unlikely.
Production and Stock Overview
This year’s Kharif season saw a collection of approximately 227 million metric tonnes of corn, with significant quantities already sold. Expectations for Rabi season production in Bihar are optimistic, projecting a 6 million metric tonnes increase from the previous year. As a result, cautious trading is advised, particularly with no new corn expected until September-October, other than Bihar’s current supply.
The corn market is adjusting to the influx of new season produce from Bihar, impacting prices and stock levels across various states. Despite current pressures, sufficient supplies for upcoming months are anticipated, suggesting stability in the corn market landscape.