Maize settled up 0.17% at 1214 on short covering tracking firm spot demand after prices dropped on higher production estimates. Good kharif supplies are ensuring that the prices don't spurt much and there are worries over export demand too. Not much of an activity is seen in local markets as the peak procurement season is still a few months away. According to the latest data, acreage under the coarse cereals stood at 60.94 lakh hectares compared with 61.92 lakh hectares as on the date last year. This is showing a drop of around 1.60% on the year but is also indicating that some pick up is emerging in the sowing activity off late. The maize crop is expected to increase on a year ago due to more area. However, this may not turn into higher realisations in terms of foreign exchange. Despite a drop in prices on a year ago, maize remained uncompetitive in the exports market as prices in the global market were lower, said an official in the Agricultural and Processed Food Products Export Development Authority (APEDA). While the country had exported three million tonnes during March-December, one million are projected to be exported in the rest of the financial year. Maize production in the country this year is likely to touch a record 25 million tonnes as adequate monsoon rains trigger higher acreage across growing states. Higher than normal rains across major maize growing states such as Andhra Pradesh, Karnataka, Maharashtra and Madhya Pradesh are likely to further push up rabi acreage this fiscal. Technically market is under fresh buying as market has witnessed gain in open interest by 0.86% to settled at 14090 while prices up 2 rupee, now Maize is getting support at 1212 and below same could see a test of 1210 level, And resistance is now likely to be seen at 1216, a move above could see prices testing 1218.

Trading Ideas:

Maize trading range for the day is 1210-1218.

Maize ended with gains on short covering tracking firm spot demand after prices dropped on higher production estimates.

Good kharif supplies are ensuring that the prices don't spurt much and there are worries over export demand too.

Not much of an activity is seen in local markets as the peak procurement season is still a few months away.

Technically market is under fresh buying as market has witnessed gain in open interest by 0.86% to settled at 14090