Commodity Trading Tips for Maize by Kedia Commodity

Maize on NCDEX settled down -1.76% at 1449 tracking weakness in spot demand and overseas prices pressured by fears of reduced exports to Mexico as relations between the U.S. and its neighbour soured. The International Grains Council raised its forecast for the global grains crop in 2016/17 from an already record level, partly driven by improved outlook for China's corn crop. The U.S. Department of Agriculture's weekly export sales report put corn sales at nearly 1.4 million tonnes, topping a range of trade expectations. The USDA also said that private exporters in the last day sold 126,312 tonnes of U.S. corn to unknown destinations. In India, maize has been sown in around 14.72 lakh hectares which is higher than 13.46 lakh hectare covered during corresponding period last year. In Maharashtra, it has been sown in around 2.41 lakh hectares which are higher than 2.10 lakh hectare covered during corresponding period last year. In Bihar also, it has been sown in around 4.47 lakh hectares which is higher than 4.36 lakh hectare covered during corresponding period last year. The area under the rabi maize crop across the country was at 1.01 mln ha up 6.4% from a year ago, according to data released by the farm ministry. In Bihar, India's largest producer of rabi maize, the acreage was at 222,000 ha, down 3.5% from a year ago, according to the data. Technically market is under long liquidation as market has witnessed drop in open interest by -15.02% to settled at 10470 while prices down -26 rupees, now Maize is getting support at 1436 and below same could see a test of 1424 level, And resistance is now likely to be seen at 1467, a move above could see prices testing 1486.

Trading Ideas:

Maize trading range for the day is 1424-1486.

Maize prices dropped tracking weakness in spot demand and overseas prices pressured by fears of reduced exports to Mexico.

IGC raised its forecast for the global grains crop in 2016/17 from an already record level, partly driven by improved outlook for China's corn crop.

NCDEX accredited warehouses maize stocks gained by 10 tonnes to 9603 tonnes.

In Nizamabad maize spot prices remains unchanged at0 Rupees to 1498.75 Rupees per 100kgs.