Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Leyangi 11 November 2013

Maize Maize settled flat tracking weakness in spot demand amid on a record production in the US and fears of a higher carry-over stock. The commodity has been in tight range off late as markets eyed heavy output in the Kharif season. However, fears that the late rains in some parts of the country could delay arrivals supported the sentiments. Some crop damage is expected in Andhra Pradesh due to excess rainfall though. The latest Kharif sowing data shows that there has been a good spurt in the area under cereals, which could arrest the overall rise in grain prices. Maize production in India this year is likely to touch record 25 million tonnes as adequate monsoon rains trigger higher acreage across growing states. According to data available from Ministry of Agriculture, area of maize as on October 2 has risen by 11% to 82.24-lakh hectare as against 74-lakh hectare in the corresponding period of last year, according to a leading domestic processor. The spot market sources mentioned that the total daily arrivals of maize have been increased to around 2-2.50 lakh bags in the major mandies of Andhra Pradesh and Karnataka against 1-1.25 lakh bags that were reported in the last week. As per the latest monthly grain report of USDA , India's post's MY ( marketing year ) 2013/14 maize production is raised to 23.0 MMT based on higher than anticipated planting of kharif corn. The government's provisional planting report for the period ending September 20, 2013 estimate planted area under kharif maize at 8.2 million hectares compared to 7.4 million hectare during the corresponding period last year. Now Maize is getting support at 1253 and below same could see a test of 1246 level, And resistance is now likely to be seen at 1266, a move above could see prices testing 1272.