Selling is likely to continue in maize futures in the near term due to steady kharif sowing progress along with weak export demand of maize in international prices. The NCDEX futures settled flat in the last trading.
As per the latest release from Ministry of Agriculture, the total sowing acreage of maize as on 26th July 2013 reported at 71.10 lakh hectares against 57.15 lakh hectares in the same time last year. This is mainly due to strong sowing in Andhra Pradesh, Uttar Pradesh and Rajasthan. The fresh supplies of these states will start from mid-September.
Moreover, weakness in export demand due to low prices of maize in international market will also encourage some selling in futures market. The spot prices of Indian maize are being traded at $20-30 per tonne higher in international market.
The NCDEX September futures declined by almost Rs 2 per quintal in the last trading to close at Rs 1290 per quintal . The NCDEX futures added 11.85 % in open interest indicating fresh short position by traders. Technically, selling is likely to emerge from 1298-1302 levels while supports are likely at 1275-1280 levels in the near term.
Source by Commodity Insights
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