Commodity Trading Tips for Maize by KediaCommodity

MaizeMaize settled flat due to fragile demand of feed millers and restricted export demand. However, current year's rabi sowing has witnessed some weakness so far due to poor sowing in Karnataka and Andhra Pradesh. Maize production in India this year is likely to touch record 25 million tonnes as adequate monsoon rains trigger higher acreage across growing states. According to data available from Ministry of Agriculture, area of maize has risen by 11% to 82.24-lakh hectare as against 74-lakh hectare in the corresponding period of last year. Reduced demand from the Asian feed millers in the first quarter of next year as delayed cargoes from Brazil are flooding the market, may impact corn prices in India. Supplies from the new season harvest are rising in the local market and are seen keeping prices under pressure. Overall corn production is expected to be higher than the previous year but excessive rains in parts of Andhra Pradesh, one of the leading cultivating states, have raised concerns about the quality of the crop. Corn is cultivated during both summer and winter in India, Asia's largest exporter of the grain, but most of the output comes from the summer crop. Export demand is less but consumption by the local poultry sector is good. Excessive rains in parts of Andhra Pradesh, one of the leading cultivating states, have raised concerns about the quality of the crop. Technically market is under fresh buying as market has witnessed gain in open interest by 0.25% to settled at 24500 while prices up 1 rupee, now Maize is getting support at 1265 and below same could see a test of 1260 level, And resistance is now likely to be seen at 1275, a move above could see prices testing 1280.

Trading Ideas:

Maize trading range for the day is 1260-1280.

Maize settled flat due to fragile demand of feed millers and restricted export demand.

However, current year's rabi sowing has witnessed some weakness so far due to poor sowing in Karnataka and Andhra Pradesh.

Excessive rains in parts of Andhra Pradesh, one of the leading cultivating states, have raised concerns about the quality of the crop.

Technically market is under fresh buying as market has witnessed gain in open interest by 0.25% to settled at 24500