Maize on NCDEX settled up 0.21% at 1403 tracking firmness in spot demand and overseas proces amid expectations of higher ethanol production in the United States. Overseas prices gained supported in part by reports of potential changes to U. S. biofuel policy to boost production. Good rains and prospects for a bumper crop have pulled South African maize prices to 2-1/2 year lows. Corn prices dropped after the government Crop Estimates Committee forecast a 2017 harvest of 13.918 million tonnes, 79 percent more than in 2016. That forecast was 6 percent higher than expectations of 13.11 million tonnes. Cold weather, rains and resilient genetically-modified crops (GMO) have also limited the damage caused by an armyworm outbreak. The region offers potential export markets. Neighbouring Zimbabwe has been hit by the fall armyworm, an invasive South American species, denting crop output. Some quantity of new crop of maize arrived into the market, contains 20% moisture level. New crop arrival pressure will emerge after Holi festival. At Khanna market in Punjab, arrivals were reported at 1200 Quintal, lower by 600 Quintal as compared to previous day. At Nizamabad market in Andhra Pradesh, estimated market supply was at 4000 Qtl, up by 3000 Qtl as compared to previous day. Technically market is under fresh buying as market has witnessed gain in open interest by 0.71% to settled at 1420 while prices up 3 rupees, now Maize is getting support at 1400 and below same could see a test of 1398 level, And resistance is now likely to be seen at 1405, a move above could see prices testing 1408.

Trading Ideas:

# Maize trading range for the day is 1398-1408.

# Maize gained tracking firmness in spot demand and overseas proces amid expectations of higher ethanol production in the United States.

# Overseas prices gained supported in part by reports of potential changes to U. S. biofuel policy to boost production.

# At Nizamabad market in Andhra Pradesh, estimated market supply was at 4000 Qtl, up by 3000 Qtl as compared to previous day.

# In Nizamabad maize spot prices dropped -4.45 Rupees to 1461.9 Rupees per 100kgs.