India's corn seen range-bound; kapaskhali may fall

24 Mar, 2013

Corn futures in India, Asia's largest exporter of the grain, are expected to trade range-bound with an upside bias next week on thin arrivals and limited spot activities ahead of a festival, while export inquiries are seen supporting prices. Indians will celebrate the festival of Holi on March 27 and major spot markets are expected to remain shut for a day or two.
The key April contract for maize on the National Commodity and Derivatives Exchange (NCDEX) ended up 0.53 percent at 1,332 rupees (about $6.29 per bushel) per 100 kg. "Some consolidation could be seen because trading activities would remain slack next week due to a festival and export demand is also steady," said Chowda Reddy, a senior analyst at JRG Wealth Management.
Fresh supplies from the new season crop have started coming into the market in small quantities and are expected to pick up from April. At Nizamabad, a key market in Andhra Pradesh, spot maize was unchanged at 1,319 rupees per 100 kg. Chicago Board Of Trade May corn edged lower after having hit a near seven-week high on Thursday, supported by tight stocks, which expected to be confirmed in the next US Department of Agriculture report on March 28.
Indian cottonseed oilcake, or kapaskhali, futures ended lower and are expected to fall next week due to a drop in local demand. "Prices are likely to take correction and demand is expected to drop at these levels," said Badruddin Khan, associate vice-president of research at Indiabulls Commodities Ltd. The key April contract on the NCDEX closed down 0.74 percent at 1,479 rupees per 100 kg. At Akola, a key market in Maharashtra, cottonseed oilcake edged down 2.5 rupees to 1,477.5 rupees per 100 kg.

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