Commodity Trading Tips for Maize by Kedia Commodity

Maize on NCDEX settled up by 0.42% at 1428 tracking firmness in spot demand and overseas prices. Mexico's attempts to diversify its supplies of corn could threaten a crucial market for U. S. farmers who are increasingly dependent on exports to unload record stockpiles that are depressing prices. Mexico buys nearly all its corn imports from the United States - shipments that totaled 13.603 million tonnes in the year ending Aug. 31, 2016. The sales account for about 28 percent of total U. S. corn exports, according to the U. S. Department of Agriculture. Mexico tends to import grain from South America or countries other than the United States only when it is cheaper or supplies are tight. USDA lowered U. S. corn ending stocks for the 2016-17 crop by 35 million bushels in this month’s World Agricultural Supply and Demand Estimates data. Corn ending stocks for the 2016-17 crop were lowered 35 million bushels to 2.32 billion bushels. That came in slightly below the average pre-report trader estimate. Corn use for ethanol was bumped up 25 million bushels to 5.35 billion bushels, based on recent data from the grain crushings report. At Naugachia market in Bihar, total arrivals are at 833 Quintal, lower by 167 Quintal as against previous day. At Ahmedabad market in Gujarat, total arrivals are at 4000 bags, up by 1000 bags as compared to previous day. In Nizamabad maize spot prices gained 1 Rupees to 1478 Rupees per
100kgs. Technically market is under short covering as market has witnessed drop in open interest by -6.5% to settled at 4030 while prices up 6 rupees, now Maize is getting support at 1424 and below same could see a test of 1421 level, And resistance is now likely to be seen at 1430, a move above could see prices testing 1433.

Trading Ideas

# Maize trading range for the day is 1421-1433.

# Maize prices endedm with gains tracking firmness in spot demand and overseas prices.

# Mexico buys nearly all its corn imports from the US - shipments that totaled 13.603 million tonnes in the year ending Aug. 31, 2016.

# NCDEX accredited warehouses maize stocks dropped by 1588 tonnes to 5150 tonnes.

# In Nizamabad maize spot prices gained 1 Rupees to 1478 Rupees per 100kgs.