Maize on NCDEX settled down by -0.85% at 1400 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. 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. Delays in corn shipments from the United States have offered China a chance to showcase its grain to major Asian buyers like Japan and South Korea, raising the prospect of a new player in global grain markets. One deal is close and talks have begun on two more, sources said, with China benefiting from its close proximity to big Asian customers and bulging stockpiles left over from a now-abandoned farmer support scheme. At Ahmedabad market in Gujarat arrivals were reported at 3000 bags, down by 1000 bags as against previous day. At Koppal market sources reported arrivals at 1000 Bags, steady as against previous day’s arrival. Technically market is under long liquidation as market has witnessed drop in open interest by - 8.27% to settled at 3440 while prices down -12 rupees, now Maize is getting support at 1398 and below same could see a test of 1396 level, And resistance is now likely to be seen at 1404, a move above could see prices testing 1408.

Trading Ideas:

# Maize trading range for the day is 1396-1408.

# Maize prices ended with losses tracking weakness in spot demand and overseas prices.

# Delays in corn shipments from the United States have offered China a chance to showcase its grain to major Asian buyers.

# At Ahmedabad market in Gujarat arrivals were reported at 3000 bags, down by 1000 bags as against previous day.

# In Nizamabad maize spot prices remains unchanged at0 Rupees to 1476.65 Rupees per 100kgs.