Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 22 August 2014

Maize Maize settled up 0.44% at 1154 on short covering after prices dropped tracking weakness in overseas prices as expectations of record yields across much of the U.S. grain belt prompted further selling. At New Delhi market total arrivals are at 500 quintals, steady as against previous day’s arrival. At Ludhiana market sources reported arrivals at 600 Quintal, unchanged as compared to previous day’s arrival. The USDA put the U.S. corn harvest at a record 14.032 billion bushels, but that was below consensus estimate of 14.253 billion. New-crop corn supplies will be a record 15.243 billion bushels, although the USDA trimmed 2013/14 ending stocks based on higher ethanol use and exports. This year, maize sowing has been delayed due to the late arrival of the monsoon. But, it has picked up pace and it is expected that this season, the area under the crop will stand at about seven million hectares. In 2013-14, India recorded an all-time high kharif maize production of 17.51 million tonnes (mt), according to the third advanced estimate. Production is expected to be better this season, though arrivals might be delayed. The USDA put the U.S. corn harvest at a record 14.032 billion bushels, but that was below consensus estimate of 14.253 billion. New-crop corn supplies will be a record 15.243 billion bushels, although the USDA trimmed 2013/14 ending stocks based on higher ethanol use and exports. Technically market is under fresh buying as market has witnessed gain in open interest by 1.11% to settled at 23630 while prices up 5 rupee, now Maize is getting support at 1145 and below same could see a test of 1136 level, And resistance is now likely to be seen at 1163, a move above could see prices testing 1172.