Wheat mixed, maize seen rising on ethanol demand

Higher wheat arrivals pressure prices in some markets, while steady feed demand and ethanol prospects support maize sentiment

Prices of wheat, maize and rice remained largely stable across major spot markets on Wednesday, although wheat prices in parts of Rajasthan declined due to higher arrivals and weak demand, traders said.

  In Kota, Rajasthan, wheat prices fell by ₹25 to ₹2,275-2,300 per 100 kg as arrivals remained elevated at around 25,000 bags. 

 Traders said farmers are increasing sales to generate funds for the upcoming kharif sowing season. Expectations of higher government wheat sales also weighed on sentiment.

  The government has allocated 21.9 million tonnes of wheat for sale and distribution in 2026-27, significantly higher than last year. Market participants believe additional supplies through government channels could keep prices under pressure in the coming months.

 However, wheat prices in Indore, Madhya Pradesh, remained steady at ₹2,570 per 100 kg. Traders said regular demand from millers and stockists helped offset the impact of higher arrivals. Prices in Vashi, Navi Mumbai, also held firm at ₹2,700 per 100 kg, supported by government procurement activity.

 Maize prices remained unchanged across key markets.  In Indore, maize traded at ₹2,175 per 100 kg, while prices in Davanagere, Karnataka, stayed in the range of ₹1,800-2,050 per 100 kg.  Demand from the livestock feed industry and ethanol producers remained steady. Marketmen  expect maize prices to strengthen in the near term as ethanol demand rises.  The government is considering gradually increasing ethanol blending in petrol to 25% from the current 20%, which could boost maize consumption by the ethanol industry.

 Meanwhile, rice prices remained stable in Vashi due to subdued trading activity. Basmati varieties, including 1409, 1509 and 1121, were quoted at previous levels as buying and selling activity remained limited. Traders expect rice prices to remain steady in the near term amid low market participation.  Traders said weather conditions and the progress of the southwest monsoon will remain key factors influencing grain markets over the next few weeks. Improved rainfall could support kharif sowing and crop prospects, while any disruption may impact sentiment. 

  Marketmen are closely monitoring government procurement, stock levels and policy decisions that could influence wheat, maize and rice prices going forward. 

 Overall the sentiment remains cautious as traders balance near-term supply conditions with expectations for future demand. Buying interest is largely need-based, limiting sharp price movements. Participants expect policy developments, seasonal consumption trends and crop progress updates to provide clearer direction, keeping grain markets range-bound in the immediate term.  

—Informist