Uptrend in maize

COMMODITY SPIKES

Maize futures, which dropped below the Rs 700 a quintal mark last fortnight, surged on account of short-covering. Being the end of the season, stocks in warehouses of exchanges are low. Market reports suggest that arrival of the new kharif crop in Andhra Pradesh has already begun, albeit in less quantity.

According to commodity analysts, after expiry of the September contract, bearish trends will prevail in the market as the crop output this season is estimated to rise 8-10 per cent.

Analysts said October futures were expected to trade over Rs 700 a quintal mark next week. They, however, added that the surge had nothing do with the fundamentals. The country expects a kharif output of around 12.5 million tonnes in 2007-08.

Derivatives Exchange, the October contract closed the week on Friday at Rs 738 a quintal, up 7.74 per cent, against the previous week's close of Rs 685 a kg.