Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 23 December 2013

Maize Maize settled down -1.14% at 1212 on subdued overseas demand as Indian corn is quoted at a premium over competitors, while fresh arrivals from the new season crop and prospects of higher production also seen weighing on sentiment. Overseas demand has been slow for Indian origin corn as India is offering corn at around $ 217-220 per tonnes as compared to $ 190 and $ 200 offered by Brazil and Argentina, respectively. Crop is higher this season but demand from overseas buyers is very weak because of higher prices and quality issues. Daily arrivals in the local market from the new harvest are higher, while the quality of the supplies from some centres is inferior because of excessive rains. Corn production is expected to be higher than in the previous year, but excessive rains in parts of Andhra Pradesh, one of the leading cultivating states, have raised concerns about the quality of the crop. Around 48 percent of the demand for maize is projected to come from poultry feed, while human consumption and the processing sector account for the rest. Corn is cultivated during both summer and winter in India, Asia's largest exporter of the grain, but most of the output comes from the summer crop. China has rejected a total of 545,000 tonnes of corn from the United States as of Dec. 19, after detecting an unapproved genetically modified strain, the government's quarantine authority said. Technically market is under long liquidation as market has witnessed drop in open interest by -2.86% to settled at 27540 while prices down -14 rupee, now Maize is getting support at 1206 and below same could see a test of 1200 level, And resistance is now likely to be seen at 1221, a move above could see prices testing 1230.