Corn futures in India are expected to edge up next week due to thin new season supplies from the state of Bihar, and on slow pace of sowing in the United States though subdued exports are seen restricting the upside. Supplies from the new season winter-sown crop in Bihar have been lower than expected due to unfavourable weather, traders said.
Maize is cultivated twice a year, during summer and winter, in India, Asia's largest exporter of the grain, with the major contribution coming from the summer crop. "Some recovery is expected in corn prices next week. But any sharp upside is unlikely because of weak export and local demand," said Chowda Reddy, a senior analyst at JRG Wealth Management.
The key June contract for maize rabi rose 0.85 percent to close at 1,186 Indian rupees ($5.55 per bushel) per 100 kg on the National Commodity and Derivatives Exchange (NCDEX). It has fallen more than 5 percent since the close on March 23. Demand for corn as feed falls in summer along with demand for poultry as people consume less of fatty foods due to high temperatures.
India's corn output is expected to be 21.82 million tonnes in 2012/13 as per the farm ministry's third advance estimate as against 21.76 million tonnes a year earlier. Reddy expects the June contract to rise to 1,205 rupees by next week. In Chicago, the key July corn contract on CBOT was down 0.12 percent at $6.40-3/4 per bushel at 1310 GMT.
Corn plantings had fallen to record lows in the US Department of Agriculture's most recent progress report, but analysts expect a government plantings report next week to show between 55 percent and 65 percent of corn areas have been planted, up from 28 percent seeded last week.