Maize settled down -0.16% at 1221 on subdued demand from overseas buyers as it is quoted at a premium over competitors in the international market amid prospects of better crop. Sources estimate corn output to be slightly higher at 22.5 million tonnes in 2013/14, compared with 22.23 million tonnes a year earlier. India's corn exports are expected to drop to around 3 million tonnes in 2013/14 as buyers opt for cheaper supplies from South America. The rejected U. S. corn from Chinese ports is getting diverted to Vietnam and Indonesia, killing demand from India. U. S. corn exports to China slowed as Beijing continued to reject cargoes containing an unapproved genetically modified strain. Daily arrivals in the local market from the new harvest are higher, while the quality of supplies from some centres is inferior because of excessive rains. Overseas demand has been slow for Indian origin corn as India is offering corn at around $ 217-220 per tonnes as compared to $ 190 and $ 200 offered by Brazil and Argentina, respectively. Crop is higher this season but demand from overseas buyers is very weak because of higher prices and quality issues. Technically market is under fresh selling as market has witnessed gain in open interest by 4.15% to settled at 9040 while prices down -2 rupee, now Maize is getting support at 1218 and below same could see a test of 1215 level, And resistance is now likely to be seen at 1225, a move above could see prices testing 1229.

Trading Ideas:

Maize trading range for the day is 1215-1229.

Maize dropped on subdued demand from overseas buyers as it is quoted at a premium over competitors in the international market.

India's corn exports are expected to drop to around 3 million tonnes in 2013/14 as buyers opt for cheaper supplies from South America.

NCDEX accredited warehouses maize stocks gained by 20 tonnes to 14215 tonnes.

Technically market is under fresh selling as market has witnessed gain in open interest by 4.15% to settled at 9040