Maize settled down -3.99% at 1060 tracking weakness in spot demand on forecast of higher local production. India total maize production in 2013-14 is estimated at 23.29 million tons against 22.26 million tons due to higher sowing acreage coupled with favourable crop conditions in major producing states, the second advance estimates of Indian government showed. Maize exports from India are likely to remain lower this marketing year owing to higher prices due to a possible El Nino impact in the upcoming kharif season. El Nino impact would pare expectations of higher maize production in the country. Maize exports during October 2013 to April 2014 stood at 2.17 million tonne almost 1 million tonne lower than the corresponding period last year. For the marketing year October-September 2013-14, maize exports are expected to fall 26 per cent against 4.76 million tonne last year. Adding further he informed that prices will also get support from the expectations that El Nino will impact maize production in the upcoming kharif season. 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 long liquidation as market has witnessed drop in open interest by -0.66% to settled at 37680 while prices down -44 rupee, now Maize is getting support at 1045 and below same could see a test of 1031 level, And resistance is now likely to be seen at 1088, a move above could see prices testing 1117.

Trading Ideas:

Maize trading range for the day is 1031-1117.

Maize prices ended with losses tracking weakness in spot demand on forecast of higher local production.

Maize exports from India are likely to remain lower this marketing year owing to higher prices due to a possible El Nino impact.

India total maize production in 2013-14 is estimated at 23.29 million tons against 22.26 million tons.

NCDEX accredited warehouses maize stocks dropped by 548 tonnes to 19143 tonnes.