Maize on NCDEX settled up by 1.27% at 1357 tracking firmness in spot demand and overseas prices as bullish data on ethanol supported the market. Corn is drawing support from bullish weekly data on ethanol, which is made from corn. The U. S. Energy Information Administration said ethanol production last week increased by 36,000 barrels per day while stocks of the biofuel fell by 351,000 barrels. As per IBIS data, India exported 363.2 MT maize during the week ended 16th October’16 against 1153 MT previous week ending 8th October’16. Maize has been exported at an average FoB of $ 301.80 / MT. Indian maize is exported mainly to UAE and Malaysia through Mundra Sea followed by JNPT Sea. At Naugachia market in Bihar, total arrivals are at 100 Quintal, unchanged as compared to previous day’s arrival. At Khanna market in Punjab, arrivals were reported at 3750 Quintal, higher by 3750 Quintal as against previous day. Corn production is forecast at 15.057 billion bushels, down 36 million from last month as a lower forecast yield more than offsets an increase in harvested area. Corn supplies for 2016/17 are down slightly to 16.845 billion bushels, as a lower crop more than offsets a small increase in beginning stocks. Exports are raised 50 million bushels, reflecting current U. S. export commitments that are well above a year ago. In Nizamabad maize spot prices gained 1.85 rupees to 1445 rupees per 100kgs. Technically market is under short covering as market has witnessed drop in open interest by -2.31% to settled at 8870 while prices up 17 rupee, now Maize is getting support at
1346 and below same could see a test of 1335 level, And resistance is now likely to be seen at 1370, a move above could see prices testing 1383.

Trading Ideas:

Maize trading range for the day is 1335-1383.

Maize prices gained tracking firmness in spot demand and overseas prices as bullish data on ethanol supported the market.

The U. S. EIA said ethanol production last week increased by 36,000 barrels per day.

NCDEX accredited warehouses maize stocks dropped by 351 tonnes to 50 tonnes.

In Nizamabad maize spot prices gained 1.85 rupees to 1445 rupees per 100kgs.