Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 1 August 2014

Maize Maize settled up 1.69% at 1206 tracking firmness in spot demand amid short covering after prices dropped tracking weakness in overseas market as expectations for ample supplies weighed on prices. In Delhi arrivals were reported at 800 quintals, steady as against previous day’s arrival. In Bihar sources reported arrivals at 6667 Quintal, lower by 1666 Quintal as compared to previous day. 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 short covering as market has witnessed drop in open interest by -0.78% to settled at 26600 while prices up 20 rupee, now Maize is getting support at 1183 and below same could see a test of 1161 level, And resistance is now likely to be seen at 1218, a move above could see prices testing 1231.