Competitive Purchasing Pushes Corn Prices Higher
Corn prices have been steadily increasing due to strong demand from ethanol companies, along with the starch and poultry feed industries. Despite increased arrivals in the producing markets, the competition among buyers has led to a continuous rise in prices. With a further increase of $0,06 to $0,18 per kg possible. However, it is advised to take profits when prices peak.
Corn Prices Surge Across Major Producing Regions
In Uttar Pradesh (UP), the pressure from increased arrivals has not slowed the market. Ethanol companies have been actively purchasing corn over the past month, causing prices to rise steadily. In most markets, corn is being consumed as soon as it arrives, leaving little for stockpiling.
- In the Farrukhabad, Kannauj, and Bahraich regions of UP, corn is being loaded at $0,28 to $0,29 per kg, both at red point and warehouse reach.
- Good quality corn in the Haryana and Punjab regions has been sold at $0,30 to $0,31 per kg.
- Meanwhile, corn from Bihar is fetching $0,30 per kg in the warehouse areas, while corn in the Farrukhabad line is selling at $0,24 per kg.
Future Prospects for Corn Prices
Last month, corn was selling at $0,28 to $0,29 per kg, but prices have risen, making it difficult to source corn even at these levels. Traders in the Kachi Mandis have begun holding back their stocks, further tightening supply.
Ethanol companies have been consistently buying corn, as the high prices of rice and millet make corn a more attractive option. The crop in UP has been excellent, and the Hoshiarpur line in Punjab has also reported a strong yield. In Bihar, production increased by about 10 percent compared to last year. Yet fewer goods reached the warehouses due to early season buying by large companies. Many goods have been redirected to Madhya Pradesh and Haryana Punjab.
There is a significant shortage of corn in ethanol companies, which continues to drive the upward trend in prices. Despite the high production levels, the market is expected to rise by an additional $0,06 to $0,18 per kg in the near future.
The corn market is experiencing a steady rise in prices due to strong demand from ethanol and feed industries, coupled with competitive purchasing. Although production has been good, especially in Bihar and UP, the market is likely to see further price increases. Traders should remain vigilant and consider taking profits as prices rise.