Maize may trade 1377-1421 range, gains at 1304
Commodity Online | June 02 2016
UPDATED 17:27:09 IST

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Maize on NCDEX settled up by 0.54% at 1304 supported by increased offtake by consuming industries.  The USDA projected U.S. corn stocks would rise to 2.153 billion bushels by the end of 2016/17. The figure was below the average trade forecast of 2.294 billion, but would be the largest since the 1980s if realised. U.S. farmers are in the thick of spring planting and had seeded 64 percent of the 2016/17 corn crop by Sunday, the USDA said.

Hefty supplies, large expected crops and poor U.S. exports will weigh on grain prices later this year, with corn set to drop to 10-year lows as harvest nears, consultancy AgResource said. In its first 2016 price forecast, the U.S.-based consultancy projected CBOT December corn would fall 25 percent to $2.80 per bushel as the harvest nears and it becomes the market's front month. That would be the lowest front-month contract since October 2006. Large speculators increased their net short position in CBOT corn futures in the week to April. 5, regulatory data showed.

Corn prices in the country declined during last week with the average rates ranging between Rs 13,300-15,500 per tonne as arrivals begun, according to the US Grains Council (USGC). In India, maize arrivals have started in Maharashtra, Bihar, Karnataka, Andhra Pradesh and Telanagna and the average prices range between Rs 13,300-15,500 per tonne, USGC Representative for India. In Nizamabad maize spot prices remains unchanged at0 rupees to 1469.15 rupees per 100kgs.Technically market is under short covering as market has witnessed drop in open interest by -2.54% to settled at 22220, now Maize is getting support at 1298 and below same could see a test of 1292 level, and resistance is now likely to be seen at 1311, a move above could see prices
testing 1318.

Trading Ideas:
--Maize trading range for the day is 1377-1421.
--Maize prices gained supported by increased offtake by consuming industries.
--The USDA projected U.S. corn stocks would rise to 2.153 billion bushels by the end of 2016/17.
--NCDEX accredited warehouses maize stocks gained by 160 tonnes to 5211 tonnes.
--In Nizamabad maize spot prices gained 2.45 rupees to 1565.55 rupees per 100kgs

Courtesy: kedia Commodities