Maize on NCDEX settled down by -0.28% at 1431 tracking weakness in spot demand and overseas prives as expectations for bumper South American production weighed. 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. Neighbouring Zimbabwe has been hit by the fall armyworm, an invasive South American species, denting crop output. 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 -1.65 Rupees to 1455.55 Rupees per 100kgs.Technically market is under long liquidation as market has witnessed drop in open interest by -3.45% to settled at 1680 while prices down -4 rupees, now Maize is getting support at 1418 and below same could see a test of 1406 level, And resistance is now likely to be seen at 1443, a move above could see prices testing 1456.

Trading Ideas:

Maize trading range for the day is 1406-1456.

Maize dropped tracking weakness in spot demand and overseas prives as expectations for bumper South American production weighed.

Corn prices dropped after the government Crop Estimates Committee forecast a 2017 harvest of 13.918 mln tns, 79 percent more than in 2016.

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 -1.65 Rupees to 1455.55 Rupees per 100kgs.