Corn futures in India, Asia's largest exporter of the grain, are expected to trade lower next week on a slowdown in fresh export orders, hopes of a pick-up in supplies from Bihar in coming weeks and expectations of higher winter crop. India's aggressive corn exports look set to hit a wall as a slide of more than 13 percent in global prices since mid-March has made shipments from the South Asian nation uncompetitive, prompting buyers to seek cheaper cargoes from South America.
"Exports have slowed down in the past one month because of a fall in the international prices. Indian prices are no more competitive in the global market," said Tejas Thakkar, director, Vijaya Enterprises, an exporter based in Mumbai. Traders said supplies from the new season winter-sown crop from Bihar are expected to improve gradually in coming weeks. In India, maize is cultivated twice a year during summer and winter with a major contribution coming from the summer crop.
The key May contract for maize rabi on the National Commodity and Derivatives Exchange (NCDEX) fell 0.76 percent to 1,181 rupees ($5.55 per bushel) per 100 kg. Wet and cold weather in the US crop belt next week will continue to stall spring corn plantings but also will add valuable soil moisture to drought-stricken cropland, an agricultural meteorologist said on Friday.
Indian cottonseed oilcake, or kapaskhali, futures are likely to trade firm next week on some improvement in spot demand from local feed makers. Kapaskhali is a by-product of cottonseed and is used as cattle feed, mostly for dairy animals, in northern India. "A pick-up in local buying is seen supporting cottonseed oilcake," said Badruddin Khan, associate vice-president of research at Indiabulls Commodities Ltd. Khan expects the May contract to trade in the range of 1,540-1,625 rupees per 100 kg next week. The key May contract on the NCDEX closed 0.64 percent higher at 1,574 rupees per 100 kg.
Comments
Comments are closed.