Fall in arrivals has caused a rise in maize prices during the first two weeks of June.
According to market analysts, demand for the commodity has also gone up while arrivals registered a fall. Spot prices of the commodity have gone up from Rs 690 to Rs 740 per quintal this month.
Even maize Futures continued to be bullish since the last fortnight and the commodity is expected to maintain its firmness till the new crop arrives.
The contract for June delivery at the National Commodity and Derivatives Exchange (Ncdex) went up from Rs 731 a quintal from the beginning of the month to Rs 760 now. The contract for July delivery has risen by 3 per cent during the period to close at Rs 771 a quintal on Tuesday.
Similarly, the consecutive August contract scaled up to Rs 780 a quintal. Both the July and August contracts were at Rs 747 and Rs 757 a quintal respectively at the beginning of the month.
Traders said the southwest monsoon is playing an important role in stoking the market with bullish sentiments. The arrival of maize is low and the crop season has come to an end. But demand continues to remain firm from the poultry industry that uses maize corn as a primary feed.
Prices are expected to rally up to Rs 800 a quintal levels in the Futures market and to Rs 780 in the spot market.
The progress of the monsoon will also be a deciding factor for the market. Monsoon has covered parts of Karnataka, but is yet to arrive in Maharashtra, one of the main kharif maize growing regions in the country.
