OfBusiness Grains Dailies | 19th July 2023

Price

• Maize prices remain unchanged at Rs. 2200 per quintal, maintaining stability compared to the previous day.
• The price of Basmati paddy is rising, currently at approximately Rs. 3111 per quintal, indicating an increase from the previous day.
• The price of wheat in Delhi for the UP and Rajasthan regions is Rs. 2440 per quintal.

Demand and Supply

• Due to the limited availability of wheat supplies at current prices, millers in the northern region are procuring from major centers in North India.
• Although the Food Corporation of India (FCI) plans to auction 1.84 lakh tons of wheat tomorrow, the auctioned quantity is insufficient to meet market demand. This shortage is anticipated to maintain stable prices, but with a tendency to rise.
• The maize market in UP is currently active, leading to a significant decrease in prices. Goods from UP are being sold at Rs 2000/2025 per quintal when they reach Haryana and Punjab. As a result, maize from Bihar is stockpiling, causing the maize market in Bihar’s producer mandis to be more active than previous days.

News

• The UN-mediated agreement between Russia and Ukraine, permitting Ukrainian grain exports through the Black Sea, has been halted due to allegations of a Ukrainian attack on the Crimean Bridge. This suspension is expected to maintain stability in global wheat and corn prices in the short term.
• Due to inadequate rainfall in important maize-producing areas of Karnataka and Maharashtra, maize prices are rising. This slow progress in kharif sowing is expected to create cost pressures for the poultry sector, which already faces seasonal consumption slowdown and price decline.

OFB’s Opinion

• Considering the stability in wheat prices at major centres across India today, it might be advisable to closely monitor the situation, as there seems to be a positive inclination. This stability could be attributed to the Food Corporation of India (FCI) implementing restrictions on traders participating in electronic auctions.
• In the poultry industry, there is a complete utilization of maize as it is more financially advantageous in egg production compared to millet due to its high protein content. As a result, it is expected that the demand for bajra (millet) may remain low or inactive in the next one or two days.