Maize settled down -3.13% at 1146 due to recovery in sowing of new kharif crop coupled with heavy stockiest selling in local mandies. The corn market is facing pressure as the weather has remained nearly perfect during the pollination phase which is key for yields. 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. FCI, which normally procures wheat and rice in big way, has purchased about 12.15 lakh tonnes of maize from five states so far in the ongoing 2013-14 season, as per the official data. Bihar with an annual production of around 27-28 lakh tonnes is the second biggest maize producer in the country.

Maize MSP stands at Rs 1,310 per quintal for this year. FCI, which normally procures wheat and rice in big way, has purchased about 12.15 lakh tonnes of maize from five states so far in the ongoing 2013-14 season, as per the official data. Technically market is under long liquidation as market has witnessed drop in open interest by -6.66% to settled at 27350 while prices down -37 rupee, now Maize is getting support at 1131 and below same could see a test of 1115 level, And resistance is now likely to be seen at 1173, a move above could see prices testing 1199.

Trading Ideas:

Maize trading range for the day is 1115-1199.

Maize dropped due to recovery in sowing of new kharif crop coupled with heavy stockiest selling in local mandies.

The corn market is facing pressure as the weather has remained nearly perfect during the pollination phase which is key for yields.

The market sources suggested that heavy rainfall in northern and central parts of India has augmented the sowing pace of maize crop

NCDEX accredited warehouses maize stocks gained by 523 tonnes to 26996 tonnes.