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OUTLOOK-India corn seen range-bound; kapaskhali may rise

Source : REUTERS
Last Updated: Fri, Mar 15, 2013 13:30 hrs

MUMBAI, March 15 (Reuters) - Corn futures in India, Asia's largest exporter of the grain, ended down on Friday and are expected to trade range-bound with negative bias next week on fresh arrivals from the new season crop, but export inquiries are seen aiding prices.

The key April contract for maize on the National Commodity and Derivatives Exchange (NCDEX) ended down 0.23 percent at 1,303 rupees (about $6.15 per bushel) per 100 kg.

"We are seeing some demand from southeast Asian countries. Port congestion in Brazil is tightening supplies and diverting demand towards India," said Prerana Desai, vice-president of research at Kotak Commodities.

Premiums over Chicago futures prices paid for soybeans at Brazil's Paranagua port turned negative for the first time in the 2012/13 crop year on Thursday as a record harvest pressures prices and transportation delays crimp demand.

Indian traders have struck a rare deal to export 13,700 tonnes of corn to China, as the world's second largest consumer of the grain tries to meet rapidly increasing demand from its animal feed sector amid high domestic prices.

Fresh supplies have started coming into the market in small quantities.

At Nizamabad, a key market in Andhra Pradesh, spot maize edged down 2 rupees to 1,327 rupees per 100 kg.

Daily supplies at Nizamabad have reached 200-300 tonnes and are expected to touch 1,000 tonnes after holi, said a trader from Nizamabad.

Holi, a local festival, will be celebrated on March 27.

Desai expects the April maize contract to trade in the range of 1,280-1,320 rupees in the next week.

In Chicago, the key May corn contract on CBOT was down 0.03 percent at $7.161/4 per bushel as of 0113 GMT.

The U.S. Department of Agriculture (USDA) forecast at its annual outlook forum 2013/14 U.S. corn production would rebound to 14.350 billion bushels, up 35 percent on the year.

KAPASKHALI

Indian cottonseed oilcake, or kapaskhali, futures ended lower, but are seen rising in the next week on prospects of good local demand while bullish cues from cotton could also support.

Kapaskhali is a by-product of cottonseed and is used as cattle feed, mostly for dairy animals, in northern India.

The key April contract on the NCDEX closed down 0.26 percent at 1,534 rupees per 100 kg.

At Akola, a key market in Maharashtra, cottonseed oilcake edged up 1 rupee to 1,509 rupees per 100 kg.

($1 = 54.3100 Indian rupees) (Reporting by Meenakshi Sharma; Editing by Jijo Jacob)



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