The prices of Maize in Argentina have eased in the first half of October after a brief period of higher prices in late September. The price increase in September was a rapid consequence of policy moves and market reactions to that policy. Several Maize buyers had already replenished their inventories by October during the tax exempt. The increased inventory covers have reduced the procurement needs of the downstream sector in early October. The downstream sectors like the feed mills, livestock operations and biofuel producers have adjusted their purchase patterns in line with the sudden availability and subsequent normalization of shipments. ChemAnalyst anticipates that the prices of Maize will likely recover in export market of Argentina. The rise is expected as the replenished inventories are consumed which resumes the procurement. The buyers and sellers can navigate the current environment by running inventory-cover analyses to protect their profit margins. The forecast insights and diversification of sources of procurement should be adopted to avoid misalignment of procurement strategies.
