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Hungary maize prices drop in spite of smaller harvest

Hungary's maize farmers are facing falling prices in spite of a smaller harvest as the number of livestock drops and demand for biofuel falls, business daily Világgazdaság reported on Wednesday.

The price of a ton of maize has plunged to HUF 25,000 from HUF 41,000 for contracts for September delivery bought at the beginning of the summer, József Vancsura, who chairs the National Association of Grain Growers, told the paper. Hungary's maize harvest is expected to fall to around 6 million tons this year from 9 million tons in 2008, he added.

Farmers' stock of hogs and cattle has dropped sharply compared to a year earlier, and many potential buyers of maize for feed have their own liquidity problems, Vancsura said. Demand from producers of biofuel has also dropped because crude prices have fallen sharply. The price of crude has to rise over $100 per barrel if biofuel production is to reach full capacity, he added. (MTI-ECONEWS)