NCDEX Maize market under short covering
Commodity Online | September 20 2016
UPDATED 15:42:13 IST

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Maize on NCDEX settled up by 1.2% at 1513 tracking firmness in spot demand and overseas as prices underpinned by rains in parts of the U.S. Midwest that delayed the harvest. In India, maize has been sown in around 83.22 lakh hectares as on 16th Sept’ 16 which is higher than 76.34 lakh hectare covered during corresponding period last year. In Karnataka, it has been sown in 12.67 lakh hectare which is higher than 10.43 lakh hectare covered during corresponding period last year while in Maharashtra; it has been up by 1.65 lakh hectares to 9.21 lakh hectares. In M.P, it has been up by 1.65 lakh hectares to 12.63 lakh hectares.

However, in Rajasthan, it has been down by 0.48 lakh hectares to 9.32 lakh hectares. At Naugachia market in Bihar sources reported arrivals at 1667 Quintal, unchanged as compared to previous day’s arrival. At Khanna market in Punjab, estimated market supply was at 4500 Quintal, unchanged as compared to previous day’s arrival. Corn exports are raised for Brazil with larger projected supplies for the local marketing year beginning in March 2017. Corn imports are raised for China, reflecting updated expectations of trade by non-state importers.

China’s barley imports are lowered as the pace of trade has slowed in recent months, despite global feed barley prices that are well below a year ago. Foreign corn ending stocks for 2016/17 are lowered 0.7 million tons from last month. In Nizamabad maize spot prices gained 61.1 rupees to 1882.2 rupees per 100kgs.Technically market is under short covering as market has witnessed drop in open interest by -1.31% to settled at 3770 while prices up 18 rupee, now Maize is getting support at 1501 and below same could see a test of 1489 level, And resistance is now likely to be seen at 1520, a move above could see prices testing 1527.

Trading Ideas:

--Maize trading range for the day is 1489-1527.

--Maize prices gained tracking firmness in spot demand and overseas as prices underpinned by rains in parts of the U.S. Midwest.

--India, maize has been sown in around 83.22 lakh hectares which is higher than 76.34 lakh hectare covered during corresponding period last year.

--NCDEX accredited warehouses maize stocks dropped by 473 tonnes to 2860 tonnes.

--In Nizamabad maize spot prices gained 61.1 rupees to 1882.2 rupees per 100kgs.

Courtesy: Kedia Commodities

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