Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 12 September 2014

Maize Maize settled down -2.1% at 1071 tracking weakness in spot demand and overseas prices pressured by expectations of record output. The U.S. Department of Agriculture is expected to raise its estimate for U.S. corn production to 14.288 billion bushels on Thursday, from its August estimate of 14.032 billion, according to a poll. At Ludhiana market estimated market supply was at 1000 Quintal, up by 1000 Quintal from previous day’s arrivals. At New Delhi market total arrivals are at 600 quintals, steady as against previous day’s arrival. At Ahmedabad market in Gujarat arrivals were reported at 3000 bags, steady as against previous day’s arrival. At Davanagere market estimated market supply was at 500 Bags, steady as against previous day’s arrival. 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 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 inkharif 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. In Nizamabad maize prices dropped -19.15 rupee to end at 1309.35 rupees per 10 kg. Technically market is under fresh selling as market has witnessed gain in open interest by 5.26% to settled at 37790 while prices down -23 rupee, now Maize is getting support at 1061 and below same could see a test of 1051 level, And resistance is now likely to be seen at 1090, a move above could see prices testing 1109.