Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 28 July 2014

Maize Maize prices ended with losses tracking weakness in spot demand and overseas prices as pressure weighed down by the prospect of record yields in overseas market. The corn market is facing pressure as the weather has remained nearly perfect during the pollination phase which is key for yields. In Punjab sources reported arrivals at 1000 Quintal, unchanged as compared to previous day’s arrival. At Davanagere market sources reported arrivals at 500 Bags, steady as against previous day’s arrival. In Gujarat estimated market supply was at 6000 bags, steady as against previous day’s arrival. In Bihar estimated market supply was at 5000 Quintal, up by 5000 Quintal from previous trading day. The market sources suggested that heavy rainfall in northern and central parts of India has augmented the sowing pace of maize crop. The harvesting of new maize crop will start from September- October month. The prices were also discouraged by higher stocks in local mandies as sources have reported total stocks of 15 lakh tonnes of maize against 10-12 lakh tonnes of the previous year in the same period. The market sources suggested that weak rainfall will limit the sowing of maize in northern part of the country. The delayed monsoon this year is likely to hit the sowing of maize, an important kharif crop, across India. The U.S. Department of Agriculture rated 76 percent of the U.S. corn crop in good to excellent condition, the highest for this time of year in a decade. Technically market is under long liquidation as market has witnessed drop in open interest by -6.69% to settled at 32650, now Maize is getting support at 1185 and below same could see a test of 1178 level, And resistance is now likely to be seen at 1199, a move above could see prices testing 1206.