Maize seen rangebound

COMMODITY SPIKES

Maize futures remain rangebound last week with prices oscillating between Rs 725 and Rs 740 a quintal. Arrivals of close to 100,000 bags (each of 100 kg) a day from Andhra Pradesh and Karnataka are keeping a check on the market. Reports from the poultry industry suggesting there could be a slowdown in the production of chicken and eggs have further dented the prices.

Recent reports of bird flue in UAE have also taken toll on the country's exports of chicken and eggs. The country's kharif output of maize this year is estimated to be a little above 13 million tonnes against 11.5 million tonnes last season.

Exports to south Asian countries are being done at around $220-230 a tonne (FOB). The harvesting is on and the moisture content in the current arrivals is higher at around 14-16 per cent.

Marketmen said that at 12 per cent moisture content, demand from the domestic market would go up. Starch makers have already entered the market for procurement. On the National Commodity and Derivatives Exchange (NCDEX), the contract for near-month delivery closed on Saturday at Rs 735, down Rs 5 a quintal, against the previous week's close of Rs 740 a kg.