Commodity Trading Tips for Maize by Kedia Commodity

Maize on NCDEX settled down by -0.63% at 1412 tracking weakness in spot demand and overseas prices. Mexico's attempts to diversify its supplies of corn could threaten a crucial market for U. S. farmers who are increasingly dependent on exports to unload record stockpiles that are depressing prices. Mexico buys nearly all its corn imports from the United States - shipments that totaled 13.603 million tonnes in the year ending Aug. 31, 2016. The sales account for about 28 percent of total U. S. corn exports, according to the U. S. Department of Agriculture. The U. S. Commodity Futures Trading Commission's weekly Commitment of Traders report, released after the close of the market on Friday, showed speculators expanded their net long position in CBOT corn futures to nearly 81,000 contracts in the week to Feb. 14, their biggest net long since July. Traders await fresh acreage forecasts from the U. S. Department of Agriculture's annual outlook forum this week. 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. At Nizamabad market in Andhra Pradesh estimated market supply was at 2000 Qtl, higher by 1000 Qtl from previous day’s arrivals. At Khanna market in Punjab sources reported arrivals at 1200 Quintal, up by 150 Quintal from previous trading day. At Naugachia market in Bihar arrivals were reported at
1000 Quintal, steady as against previous day’s arrival. In Nizamabad maize spot prices dropped -1.85 Rupees to 1476.65 Rupees per 100kgs. Technically market is under long liquidation as market has witnessed drop in open interest by -5.06% to settled at 3750 while prices down -9 rupees, now Maize is getting support at 1404 and below same could see a test of 1397 level, And resistance is now likely to be seen at 1418, a move above could see prices testing 1425.

Trading Ideas:

# Maize trading range for the day is 1397-1425.

# Maize prices dropped tracking weakness in spot demand and overseas prices.

# At Nizamabad market in Andhra Pradesh estimated market supply was at 2000 Qtl, higher by 1000 Qtl from previous day’s arrivals.

# Traders await fresh acreage forecasts from the U. S. Department of Agriculture's annual outlook forum this week.

# In Nizamabad maize spot prices dropped -1.85 Rupees to 1476.65 Rupees per 100kgs.