Maize settled up 2.07% at 1133 on concerns over output of the rainfed crop amid forecast of patchy rainfall. Prices also got supported on the heels of strong export demand coupled with possibility of delay in new kharif crop sowing. The 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. Maize production in India this year is likely to touch record 25 million tonnes as adequate monsoon rains trigger higher acreage across growing states. As per the second advance estimates of Indian government, the total maize production in 2013-14 is estimated at 23.29 million tonnes against 22.26 million tonnes due to higher sowing acreage coupled with favouable crop conditions in major producing states. 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. Technically market is under short covering as market has witnessed drop in open interest by -3.04% to settled at 35370 while prices up 23 rupee, now Maize is getting support at 1115 and below same could see a test of 1096 level, And resistance is now likely to be seen at 1148, a move above could see prices testing 1162.

Trading Ideas:

Maize trading range for the day is 1096-1162.

Maize ended with gains on concerns over output of the rainfed crop amid forecast of patchy rainfall.

Prices also got supported on the heels of strong export demand coupled with possibility of delay in new kharif crop sowing.

Maize production in India this year is likely to touch record 25 million tonnes as adequate monsoon rains trigger higher acreage.

NCDEX accredited warehouses maize stocks dropped by 438 tonnes to 18794 tonnes.