Correction seen in maize prices

COMMODITY SPIKES

On Saturday, the near-month contract saw a weakening trend with market closing at Rs 958 against the previous week's close of Rs 971.

Factors such as record inflation, pressure from poultry industry to curb exports and a likely government intervention can put brakes on galloping prices, said commodity analysts.

"We are expecting a decline of around Rs 15-20 a quintal in the coming week before the market stabilises," said an analyst. According to her, prices cannot go down due to firm global demand.

An estimated production of around 16 million tonnes this season in the country is slightly higher than its domestic consumption.

However, rising exports mainly through private players have resulted in domestic industries such as poultry and starch facing a decline in supplies. According to estimates, exports can reach up to 3 million tonnes. Interestingly, the country has never exported more than a million tonnes of maize.

Since, inflation is ruling at a 13-year high, a ban on maize export is anticipated. For the July contract, the immediate support is seen at Rs 941 a quintal and resistance at Rs 973.