Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 14 February 2014

Maize Maize settled up 0.49% at 1221 on some short covering after prices dropped due to strong sowing progress of rabi crop in the current year along with receding export demand in local mandies. India's outbound shipments of corn are expected to slide 31 per cent to 3.2 million tonnes in the 2013-14 marketing year hit by weak export demand, according to a report by the US Department of Agriculture (USDA). India is estimated to have shipped a record 4.67 million tonnes of corn (maize) in the 2012-13 marketing year (November-October). 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. Traders are expecting around 46 lakh tonnes of total rabi production in the current year. The prices were also dampened by poor export demand in local mandies. Traders suggested that only 5-7 lakh tonnes of maize have been exported in the last three months. The market sources forecasted that Indian maize exports are likely to be around 25 lakh tonnes during the October 2013- September 14, down 34% from the last year. 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. Technically market is under fresh buying as market has witnessed gain in open interest by 0.23% to settled at 13040 while prices up 6 rupee, now Maize is getting support at 1212 and below same could see a test of 1202 level, And resistance is now likely to be seen at 1226, a move above could see prices testing 1230.