Maize settled at 1090 as concerns over potential frost damage eased, extending losses into a sixth session out of seven amid expectations for a record crop. Global closing stocks for corn were estimated at 190.34 million tonnes, higher than 187.82 million tonnes forecast by the USDA in August. India's corn (maize) shipments have slowed down as overseas buyers are seen shifting to the cheaper origins in South America and the US. Also, the anticipated decline in kharif production on drop in acreage could result in lower availability for shipments.

Exports are not viable right now as the international prices are lower. Indian corn is expensive by about $40 per tonne over the South American origins and there are no shipments happening now. The higher output in countries such as Brazil, Argentina and the US has pulled down corn prices in recent months. States such as Karnataka and Punjab have seen a lower planting this year. Besides deficient rains, the shift by farmers to other crops such as cotton and pulses also contributed to lower acreage, while maintaining that prices would largely remain stable.

The US Department of Agriculture (USDA) has projected the Indian corn output for 2014-15 at 21 million tonnes, down from 23 million tonnes last year. According to the third advance estimates by the Agriculture Ministry, corn output for 2013-14 stood at 24.19 million tonnes. Technically market is under fresh buying as market has witnessed gain in open interest by 0.89% to settled at 34020 while prices up 1 rupee, now Maize is getting support at 1083 and below same could see a test of 1076 level, And resistance is now likely to be seen at 1097, a move above could see prices testing 1104.

Trading Ideas:

Maize trading range for the day is 1076-1104.

Maize dropped as concerns over potential frost damage eased, extending losses amid expectations for a record crop.

Global closing stocks for corn were estimated at 190.34 million tonnes, higher than 187.82 million tonnes forecast by the USDA in August

Deficient rains, the shift by farmers to other crops such as cotton and pulses also contributed to lower acreage.

In Nizamabad market, maize prices dropped -2 rupee to end at 1342 rupees per 10 kg.