Friday 31 May 2013

India Corn Seen Up On Slow Supply, Export Demand

31-May-2013


Corn futures in India are expected to be higher next week on a slowdown in supplies from Bihar due to rains, a pick-up in local demand and some fresh export enquiries.


India expects average rainfall in 2013. The weather office has forecast the onset of monsoon over the Kerala coast by June 3, give or take four days, a time period treated as normal.


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.


"Rains in Bihar have restricted the supplies. If rains continue for some more time then it could cause some damage to the crop," said Kanhaiyalal Agarwal, a trader from Bangalore.


The key July contract for maize rabi rose 3.24 percent to close at 1,433 rupees($6.53 per bushel) per 100 kg on the National Commodity and Derivatives Exchange (NCDEX). It hit a contract high of 1,444 rupees earlier in the day.


Chowda Reddy, a senior analyst at JRG Wealth Management, expects the July contract to rise to 1,480 rupees by next week.


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.


In Chicago, the key July corn contract on CBOT was up 0.38 percent at $6.56-3/4 per bushel at 1206 GMT.


Additional rainfall from late Thursday into the weekend will further stall corn and soybean plantings in the U.S. Midwest, threatening to trim acreage and yield potential for each crop, an agricultural meteorologist said on Thursday.


KAPASHKHALI


Indian cottonseed oilcake, or kapashkhali, futures ended up and are expected to continue to trade higher next week tracking a firm spot market, where demand was good amid thin supplies.


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


Cotton supplies have been very thin in the local market as the season has drawn to a close.


"Demand from local traders has improved and prices are likely to improve by another 50 rupees from the current levels," said Mayur Bhindora, a trader from Rajkot, Gujarat.


The key July contract on the NCDEX closed up 0.87 percent at 1,622 rupees per 100 kg.


At Akola, a key market in Maharashtra, cottonseed oilcake rose 23 rupees to 1,568 rupees per 100 kg.


Source:-http://in.reuters.com





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