Maize settled up 0.17% at 1213 on short covering tracking firmness in spot demand after prices dropped on subdued demand from overseas buyers as it is quoted at a premium over competitors in the international market amid prospects of better crop. 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. India's corn exports are expected to drop to around 3 million tonnes in 2013/14 as buyers opt for cheaper supplies from South America. The rejected U. S. corn from Chinese ports is getting diverted to Vietnam and Indonesia, killing demand from India. U. S. corn exports to China slowed as Beijing continued to reject cargoes containing an unapproved genetically modified strain. 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. 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 buying as market has witnessed gain in open interest by 12% to settled at 11570 while prices up 2 rupee, now Maize is getting support at 1199 and below same could see a test of 1185 level, And resistance is now likely to be seen at 1223, a move above could see prices testing 1233.

Trading Ideas:

Maize trading range for the day is 1184-1232.

Maize rose on short covering tracking firmness in spot demand after prices dropped on subdued demand from overseas

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

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

Technically market is under fresh buying as market has witnessed gain in open interest by 12% to settled at 11570