WebSify
Follow us on
Mail
Print

OUTLOOK-India corn seen steady to weak; kapaskhali may fall

Source : REUTERS
Last Updated: Thu, Apr 18, 2013 13:30 hrs

MUMBAI, April 18 (Reuters) - Corn futures in India are expected to trade steady to lower next week, as supplies from the new season crop in Bihar and a slowdown in exports weigh on sentiment.

Supplies from the new season winter-sown crop in Bihar are expected to improve gradually in the coming weeks, said traders.

Maize is cultivated twice a year, during summer and winter, in Asia's largest exporter of the grain, with a major contribution coming from the summer crop.

The key May contract for maize rabi on the National Commodity and Derivatives Exchange (NCDEX) closed 0.34 percent higher at 1,169 rupees ($5.53 per bushel) per 100 kg.

Spot traders expect corn prices to fall by 50-80 rupees per 100 kg with a pick-up in supplies from Bihar.

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.

"Indian corn prices are not competitive enough in the global market. Indian prices need to drop by around $10 a tonne to attract good export orders," said Kanhaiyala Agarwal, an exporter and trader based in Bangalore.

Agarwal said Indian sellers are offering corn around $255 a tonne (freight on board) whereas buyers are asking for $250-252 a tonne.

In Chicago, the key May corn contract on CBOT was steady at $6.60-1/2 per bushel at 1242 GMT.

U.S. corn slid for a second straight session on Thursday, weighed down by renewed concerns about global growth which triggered a broad-based selloff in commodity markets.

KAPASKHALI

Indian cottonseed oilcake, or kapaskhali, futures are likely to trade lower next week due to lack of 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.

"It should come down because demand is not supportive. The May contract could fall to 1,440 rupees," said Chowda Reddy, a senior analyst at JRG Wealth Management.

The key May contract on the NCDEX closed 0.47 percent higher at 1,494 rupees per 100 kg on some value buying.

At Akola, a key market in Maharashtra, cottonseed oilcake fell 5 rupees to 1,539 rupees per 100 kg.

($1 = 54.1600 Indian rupees) (Reporting by Meenakshi Sharma; Editing by Subhranshu Sahu)




blog comments powered by Disqus
most popular on facebook
talking point on sify finance