Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 19 August 2014

Maize Maize settled down -1.56% at 1135 due to recovery in sowing of new kharif crop coupled with heavy stockiest selling in local mandies. At Naugachia market in Bihar arrivals were reported at 5000 Quintal, higher by 5000 Quintal as compared to previous day. At New Delhi market estimated market supply was at 800 quintals, unchanged as compared to previous day’s arrival. Prices seen under some pressure as traders are expecting that the recent spell of showers would help boost the acreage. Demand is firm as market sources suggest as the industrial players are still buying. 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. Last year, the crop fetched farmers in the state Rs 700-1,000 a quintal in the open market, against the minimum support price of Rs 1,310 a quintal. 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 selling as market has witnessed gain in open interest by 1.12% to settled at 26290 while prices down -18 rupee, now Maize is getting support at 1125 and below same could see a test of 1115 level, And resistance is now likely to be seen at 1151, a move above could see prices testing 1167.