Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 27 December 2013

Maize Maize settled down -0.17% at 1190 due to supplies from the new season crop, prospects of higher production and sluggish demand from overseas buyers. Daily arrivals in the local market from the new harvest are higher while the quality of the supplies from some centers 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. Most of the new season supply is going to the starch and poultry sector as the quality is not fit for exports. Also, overseas buyers want Indian corn at very low prices, which is not affordable for us. 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, the world's second largest corn consumer, expects corn output in 2013/14 to rise 5.9 percent on year to a record 217.7 million tonnes, surpassing consumption, seen at 197 million. According to data available from Ministry of Agriculture, area of maize has risen by 11% to 82.24-lakh hectare as against 74-lakh hectare in the corresponding period of last year, according to a leading domestic processor. Technically market is under long liquidation as market has witnessed drop in open interest by -2.44% to settled at 24800 while prices down -2 rupee, now Maize is getting support at 1187 and below same could see a test of 1184 level, And resistance is now likely to be seen at 1196, a move above could see prices testing 1202.