Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 13 February 2014

Maize Maize ended with small gains tracking spot demand after prices seen under pressure 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. As per the latest release from Ministry of Agriculture, the total sowing acreage of rabi maize reported at 11.46 lakh hectares, up 13% from the last year in the same period. This was mainly due to higher sowing in Karnataka in the current year. Technically market is under fresh buying as market has witnessed gain in open interest by 1.25% to settled at 13010 while prices up 2 rupee, now Maize is getting support at 1213 and below same could see a test of 1211 level, And resistance is now likely to be seen at 1217, a move above could see prices testing 1219.