Maize seen sluggish

COMMODITY SPIKES

After the bullishness seen in the first few trading sessions last week, the maize prices softened by end of the week on expectations that soymeal and soyabean prices may slip. Since the poultry industry is a major consumer of maize, accounting for over 80 per cent of the total production in the country, a downtrend in soymeal (substitute of maize for poultry industry) may impact the maize market. Because of the ban on maize exports, buying from exporters has also vanished.

Moreover, commodity experts believe that as monsoon progresses, the kharif crop of maize would be larger than last year’s production and thereby its prices will sharply react to these developments. On the National Commodity and Derivatives Exchange, the near-month contract of the commodity traded firm and touched a high of Rs 1,062 a quintal.

 

On the spot market, the prices fell by Rs 10-30 a quintal in the major markets of Nizamabad, Davangere and Ahmedabad as offtake from the maize user industry reduced.