Maize settled down -0.25% at 1214 due to prospects of better crop and on higher supplies from the new harvest. Also, weighing on sentiments is weak export demand as buyers opt for cheaper supplies from South America. Sources estimate corn output to be slightly higher at 22.5 million tonnes in 2013/14 compared with 22.23 million tonnes a year earlier.

Daily arrivals in the local market from the new harvest are higher, while the quality of supplies from some centres is inferior because of excessive rains. 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. 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.

Technically market is under fresh selling as market has witnessed gain in open interest by 5.54% to settled at 10850 while prices down -3 rupee, now Maize is getting support at 1211 and below same could see a test of 1208 level, And resistance is now likely to be seen at 1219, a move above could see prices testing 1224.

Trading Ideas:

Maize trading range for the day is 1209-1225.

Maize dropped due to prospects of better crop and on higher supplies from the new harvest.

Also, weighing on sentiments is weak export demand as buyers opt for cheaper supplies from South America.

Sources estimate corn output to be slightly higher at 22.5 million tonnes in 2013/14 compared with 22.23 million tonnes a year earlier

Technically market is under fresh selling as market has witnessed gain in open interest by 5.54% to settled at 10850