Commodity spikes

Maize heading north

Maize futures surged last week on the back of uncertain weather conditions prevailing in some parts of Andhra Pradesh, from where a significant chunk of rabi crop of maize is expected this season. The near-month contract went up by around 5 per cent. On the National Commodity and Derivatives Exchange (Ncdex), the maize futures closed the week at Rs 786 a quintal on Saturday against the opening price of Rs 745 a quintal. Experts feel the rising trend will not stay for long. However, maize-based industries are of the opinion that prices will only go up from now onwards. The country's estimates of maize in rabi season are around 2.5 million tonne. However, the overall deficit in the country is going to be of around 2 million tonne.

And since importing maize is still not a feasible option, given the high rates in the international market, bearish phase seems unlikely. The spot markets across the country have also shown rise.

Chilli remains hot

Chilli futures showed exceptional rise last week on the back of tremendous export demand and irregular arrivals. The week saw the near-month contract on the NCDEX rising 10.45 per cent to Rs 4,948 a quintal at the week's close from the opening price of Rs 4,480 a quintal. On Friday, it even crossed the Rs 5,000 a quintal mark. It is interesting to note that till a month ago, prices were hovering below Rs 4,000 a quintal mark. Reports suggest the Guntur market, the largest chilli hub, is not getting sufficient supply. Against the normal of 1 lakh bags (each of 40 kg) a day, the daily average arrival this week has been around 80,000-90,000 bags. China, Bangladesh, Singapore and Malaysia are taking a considerable share of the arrivals.