Commodity Trading Tips for Maize by KediaCommodity

Ajay Kumar Kedia 12 August 2014

Maize Maize settled down -1.78% at 1159 due to recovery in sowing of new kharif crop coupled with heavy stockiest selling in local mandies. The market sources suggested that heavy rainfall in northern and central parts of India has augmented the sowing pace of maize crop. Prices were also discouraged by higher stocks in local mandies as sources have reported total stocks of 15 lakh tonnes of maize against 10-12 lakh tonnes of the previous year in the same period. This year, maize sowing has been delayed due to the late arrival of the monsoon. But, it has picked up pace and it is expected that this season, the area under the crop will stand at about seven million hectares. In 2013-14, India recorded an all-time high kharif maize production of 17.51 million tonnes (mt), according to the third advanced estimate. Production is expected to be better this season, though arrivals might be delayed. Experts are, however, concerned monsoon rains might not persist till the flowering phase of the crop. Maize requires 600-800 mm of rainfall in a season. This season, 200-300 mm of rains have been recorded across the country. As the area under the crop in Punjab is largely irrigated, it is expected production in the state won't be affected. Export demand for Indian maize is subdued, as the free-on-board price of $230-235 an mt is uncompetitive. Also, there has been concern about the quality of Indian maize in the global market. Technically market is under fresh selling as market has witnessed gain in open interest by 0.03% to settled at 33340 while prices down -21 rupee, now Maize is getting support at 1149 and below same could see a test of 1139 level, And resistance is now likely to be seen at 1176, a move above could see prices testing 1193.