Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 16 June 2014

Maize Maize settled up 0.73% at 1110 on the heels of strong export demand coupled with possibility of delay in new kharif crop sowing. Moreover, forecasting of weak monsoon rainfall has also supported the prices in local mandies. The market sources suggested that weak rainfall will limit the sowing of maize in northern part of the country. In Gujarat sources reported arrivals at 5000 bags, lower by 1000 bags from previous trading day. In Delhi sources reported arrivals at 800 quintals, steady as against previous day’s arrival. In Karnataka estimated market supply was at 1000 Bags, unchanged as compared to previous day’s arrival. In Bihar Total arrivals are at 8333 Quintal, steady as against previous day’s arrival. 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. According to trade sources, El Nino impact would support prices from the present levels thereby affecting exports. 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. The second advance estimates of government show maize production to be at 23.29 million tonnes against 22.50 million tonnes last year. Technically market is under short covering as market has witnessed drop in open interest by -1.7% to settled at 36480 while prices up 8 rupee, now Maize is getting support at 1101 and below same could see a test of 1091 level, And resistance is now likely to be seen at 1115, a move above could see prices testing 1119.