Maize Futures May Recover On Lack Of Stocks

by 5m Editor
29 October 2007, at 9:12am

INDIA - Volatile maize futures are set to trade on the higher side despite forecast of a bumper 2007 kharif production of 13 million tonnes, against last year’s production (kharif and rabi) of 11.5 mt.

In 2006-07, maize prices touched a peak of Rs 835-840 levels per quintal in March and since crashed to a low of the current level of Rs 697.

Maize prices had fallen as the poultry industry, which consumes nearly 70 per cent of the production, shifted to soyameal.

"Traders turned bearish on information that the acreage under maize had increased by 10-15 per cent," said Harish Galipalli, head of research, Karvy Comtrade.

However, analysts feel that the prices have bottomed out and are expected to recover in the short-term.

Source: Sify

5m Editor