Thursday 2 May 2013

Maize To Extend Correction Though Bargain Hunting Could Emerge Soon

NCDEX Maize futures could ease further today though some bargain hunting can emerge in the counter given the recent correction. Maize futures witnessed some selling in last session. The commodity has mostly been pressed lower on good supplies in the current week. Market has been stressed on worries about bird flu in China and higher US stockpiles. The local arrivals are improving but the production is lower in India this time around. This could support prices once the peak procurement period starts in late May-June. NCDEX June futures closed at Rs 1169 per quintal today, down Rs 7 per quintal or 0.60 % with a 2.30% increase open interest.

Rabi Maize output is likely to be 15.59 Million Tonnes, down 5.50% over the year. Total Maize output is likely to be 21.06 Million Tonnes, down 3.22%, indicating a shortfall for the commodity on the whole. However, Maize supplies are rising and would keep a tab on prices in near term. The spot prices of the commodity slipped last week towards Rs 1400 per quintal during last week in Delhi.

The spot prices of industrial grade Maize in Delhi have been pushed lower on continued increase in the fresh arrivals of the commodity from Bihar. The increase in arrivals of other grains like Wheat and Barley could also underpin bearish mood in market. Prices are currently at their lowest level in two and a half months.
Source by Commodity Insights

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