Maize on NCDEX settled down by -2.21% at 1415 as ample world supplies weighed on the market. The government reduced its corn supply outlook due to increased use in ethanol production. USDA lowered U. S. corn ending stocks for the
2016-17 crop by 35 million bushels in this month’s World Agricultural Supply and Demand Estimates data. Corn ending stocks for the 2016-17 crop were lowered 35 million bushels to 2.32 billion bushels. That came in slightly below the average pre-report trader estimate. Corn use for ethanol was bumped up 25 million bushels to 5.35 billion bushels, based on recent data from the grain crushings report. Food, seed and industrial use for corn was also bumped up 10 million bushels. The stocks-to-use ratio for the 2016-17 crop is projected at 16.1%, still significantly higher than the 12.7% ratio for the 2015-16 crop. Global ending stocks for the 2016-17 corn crop were lowered 3.42 million metric tons to 217.56 million metric tons. Ending stocks were lowered due to reductions in both China and the European Union, partially offset by increases for Mexico and Paraguay. At Nizamabad market in Andhra Pradesh sources reported arrivals at 10000 Qtl, higher by 7000 Qtl as compared to previous day. Beijing curbed its forecast on China's 2016/17 corn surplus due to better-than-expected domestic demand and lower imports, as it embarks on a strategy to erode its vast stockpile, curb acreage and boost consumption. In Nizamabad maize spot prices dropped -2.7 Rupees to 1480.65 Rupees per 100kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 8.18% to settled at 5420 while prices down -32 rupees, now Maize is getting support at 1396 and below same could see a test of 1377 level, And resistance is now likely to be seen at 1442, a move above could see prices testing 1469.

Trading Ideas:

# Maize trading range for the day is 1377-1469.

# Maize prices ended with losses as ample world supplies weighed on the market.

# USDA lowered U. S. corn ending stocks for the 2016-17 crop by 35 million bushels in this month’s WASDE data.

# NCDEX accredited warehouses maize stocks dropped by 458 tonnes to 6738 tonnes.

# In Nizamabad maize spot prices dropped -2.7 Rupees to 1480.65 Rupees per 100kgs.