Maize on NCDEX settled down by -0.69% at 1435 due to new crop arrival pressure. Good rains and prospects for a bumper crop have pulled South African maize prices to 2-1/2 year lows. Corn prices dropped after the government Crop Estimates Committee forecast a 2017 harvest of 13.918 million tonnes, 79 percent more than in 2016. That forecast was 6 percent higher than expectations of 13.11 million tonnes. Cold weather, rains and resilient genetically-modified crops (GMO) have also limited the damage caused by an armyworm outbreak. The region offers potential export markets. At Koppal market, sources reported arrivals at 2000 Bags, up by 1000 Bags as against previous day. At Ahmedabad market in Gujarat, estimated market supply was at 4000 bags, higher by 1000 bags from previous day’s arrivals. The U.S. government projected a 7 percent decline in corn production in the 2017/18 marketing year to 14.065 billion bushels, but ending stocks were expected to remain burdensome at more than 2 billion bushels. Delays in corn shipments from the United States have offered China a chance to showcase its grain to major Asian buyers like Japan and South Korea, raising the prospect of a new player in global grain markets. One deal is close and talks have begun on two more, sources said, with China benefiting from its close proximity to big Asian customers and bulging stockpiles left over from a now-abandoned farmer support scheme. In Nizamabad maize spot prices dropped -8.9 Rupees to 1457.2 Rupees per 100kgs.Technically market is under fresh selling as market has witnessed gain in open interest by 13.73% to settled at 1740 while prices down -10 rupees, now Maize is getting support at 1425 and below same could see a test of 1414 level, And resistance is now likely to be seen at 1446, a move above could see prices testing 1456.

Trading Ideas:

Maize trading range for the day is 1414-1456.

Maize prices ended with losses due to new crop arrival pressure.

Good rains and prospects for a bumper crop have pulled South African maize prices to 2-1/2 year lows.

The U.S. government projected a 7 percent decline in corn production in the 2017/18 marketing year to 14.065 billion bushels

In Nizamabad maize spot prices dropped -8.9 Rupees to 1457.2 Rupees per 100kgs.