Indian corn futures are expected to trade lower next week because of supplies from the new season harvest, expectations of better crop and sluggish export demand. Fresh supplies have started coming into the local market and would gain pace gradually, but excessive rains in parts of Andhra Pradesh, one of the leading cultivating states, have hit the quality of the crop in some pockets.
"Arrivals have started, but quality produce is less because of excessive rains. Inferior quality produce is going to poultry and starch sector," said Punamchand Gupta, a trader from Nizamabad, a key market in Andhra Pradesh. Corn is cultivated during both summer and winter in India, Asia's largest exporter of the grain, but most of the output comes from the summer crop.
Corn sowing in Bihar, the main production centre for the winter-sown crop, has started, traders said. The December contract for maize fell 0.47 percent to close at 1,260 rupees per 100 kg ($5.16 per bushel) on the National Commodity and Derivatives Exchange. Export inquiries have been sluggish, while expectations of higher US production are likely to keep prices under pressure, spot traders said. The Chicago Board of Trade December corn erased early losses to edge up 0.3 percent to $4.21-3/4 a bushel at 1247 GMT, the contract fell for the eight straight session on Friday.
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