Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 13 August 2014

Maize Maize settled up 0.95% at 1170 on short covering after prices dropped in last some sessions following losses in overseas prices and on subdued export demand. 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. At Naugachia market in Bihar total arrivals are at 5000 Quintal, down by 1667 Quintal from previous trading day. At New Delhi market total arrivals are at 800 quintals, steady as against previous day's arrival. At Davanagere sources reported arrivals at 1000 Bags, steady as against previous day's arrival. At Ahmedabad market in arrivals were reported at 3000 bags, steady as against previous day's arrival. Also, there has been concern about the quality of Indian maize in the global market. The market sources suggested that heavy rainfall in northern and central parts of India has augmented the sowing pace of maize crop. 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. Technically market is under short covering as market has witnessed drop in open interest by -3.75% to settled at 32090 while prices up 11 rupee, now Maize is getting support at 1161 and below same could see a test of 1151 level, And resistance is now likely to be seen at 1178, a move above could see prices testing 1185.