Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 2 January 2014

Maize Maize ended with gains on buying support after prices dropped 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, after detecting an unapproved genetically modified strain, the government's quarantine authority said. Technically market is under fresh buying as market has witnessed gain in open interest by 3.01% to settled at 10280 while prices up 1 rupee, now Maize is getting support at 1207 and below same could see a test of 1201 level, And resistance is now likely to be seen at 1221, a move above could see prices testing 1229.