NECC Seeks Ban On Maize Futures - June 21, 2008

Coimbatore: The National Egg Coordination Committee (NECC) has reiterated its demand for a ban on the forward trading in maize and soyameal saying the unprecedented rise in the prices of these commodities seen in recent time is due to the forward trading.

The committee has also urged the Centre to canalise the export of these goods through a designated Government agency so as to curb the speculative tendency in the market.

The steep increase in maize and soyameal has severely hit the consuming industry such as the poultry feed and the poultry farming which use these as ingredient in their feed manufacture, the NECC said adding that in the absence of a corresponding increase in farm-gate prices, poultry farmers and breeding farms/hatcheries suffered huge losses.

Already 10 per cent of the poultry industry, most of whom are small farmers, have already closed down and if the situation continued, another 30 per cent of the industry would be forced to close down in the near future, it added.

The NECC in a communication has also wanted the Government to provide an eight per cent interest subvention on bank loans availed by the poultry farmers to enable them to tide over the current difficult condition.

Maize Futures Expected To Trade Higher

Mumbai: Despite estimates of higher rabi production, maize futures on NCDEX are expected to trade on the higher side in the near-to-medium term on strong demand from Australia, Sri Lanka, the Philippines and Nepal. Run-up to Budget 2008-09

Till February, India exported 5-lakh tonnes compared with 4.5-lakh tonnes shipped during the same period of the previous year. Global corn production estimates are around 766.23 million tonnes (mt) compared with 704.1 mt last year.

Export demand

According to USDA Report released recently, India’s production in 2007-08 is projected at 16.3 mt against 14.98 mt last year, up 8.81 per cent. Rabi crop from Northern States and a small quantity from Andhra Pradesh are expected to arrive next fortnight. “The quality of rabi crop is not suited for export. The entire export demand has to be met by the kharif produce,” said Harish Galipalli, Karvy Commodities.

Further, lack of carry forward stocks may support prices on the higher side. The country is expected to produce 16.3 mt. Domestic consumption is pegged at 15.4 mt and exports at 5-lakh tonnes.

Future Trend

Maize futures on NCDEX rallied by Rs 140 per quintal in January despite higher output this year. Most active April contracts moved up from a low of Rs 790 per quintal in January to Rs 928. Strong export enquiries and declining kharif arrivals supported the prices. However, the bull run halted and fell to a low of Rs 805 by mid-February after outbreak of bird flu in West Bengal.

“Outbreak of bird flu in West Bengal and Bangladesh suppressed the prices. Wholesale prices of broilers and eggs plunged by 20-25 per cent across the country resulting in a slowdown in demand for poultry feed sector,” Galipalli said.

However, the bearish trend is set to reverse in the coming days. The April contract is retracing back after witnessing a decline to Rs 791 levels. Prices have risen from Rs 808 per quintal to Rs 843 in the last one week. “We recommend going long at Rs 830-835 levels for possible target of Rs 870 and then Rs 885-900 with stop loss below 800 levels,” he said.

Maize Gains On Tight Supply

Mumbai: It was profit booking time in the agriculture commodity futures trading on NCDEX as most of the near month contracts ended on Monday. Run-up to Budget 2008-09

Maize gained 2.37 per cent to Rs 798 per quintal on renewed export enquiries from Australia, Bangladesh and the Philippines. “Maize supply in the physical market was tight as it was not a major arrival season,” said a trader.

Kapas rose by one per cent to Rs 497 per 20 kg as millers hedged their position on the back of good demand from the export markets.

Guarseed gained 0.94 per cent to Rs 1,831 per quintal as the arrivals dropped to 10,000 bags from 70,000 bags last month and there was strong demand from the European Union markets.

Jeera up

Short covering helped jeera to gain 0.89 per cent to Rs 9,037 per quintal after the recent drastic fall. Rapeseed-Mustard seed futures were up 0.66 per cent to Rs 558 per 20 kg on lower production estimate and strong demand.

After a sharp rally last few sessions, barley contract lost 1.64 per cent to Rs 993 per quintal. Turmeric and chana were down 1.2 per cent at Rs 3,125 per quintal and 1.18 per cent at Rs 2,606 per quintal on profit booking. Soyabean closed flat at Rs 2,183 per quintal.

On MCX, mentha oil gained 0.58 per cent to Rs 453 per kg, while potato lsot 0.93 per cent to Rs 627 per quintal.

Maize Gains On Tight Supply

Mumbai: It was profit booking time in the agriculture commodity futures trading on NCDEX as most of the near month contracts ended on Monday. Run-up to Budget 2008-09

Maize gained 2.37 per cent to Rs 798 per quintal on renewed export enquiries from Australia, Bangladesh and the Philippines. “Maize supply in the physical market was tight as it was not a major arrival season,” said a trader.

Kapas rose by one per cent to Rs 497 per 20 kg as millers hedged their position on the back of good demand from the export markets.

Guarseed gained 0.94 per cent to Rs 1,831 per quintal as the arrivals dropped to 10,000 bags from 70,000 bags last month and there was strong demand from the European Union markets.

Jeera up

Short covering helped jeera to gain 0.89 per cent to Rs 9,037 per quintal after the recent drastic fall. Rapeseed-Mustard seed futures were up 0.66 per cent to Rs 558 per 20 kg on lower production estimate and strong demand.

After a sharp rally last few sessions, barley contract lost 1.64 per cent to Rs 993 per quintal. Turmeric and chana were down 1.2 per cent at Rs 3,125 per quintal and 1.18 per cent at Rs 2,606 per quintal on profit booking. Soyabean closed flat at Rs 2,183 per quintal.

On MCX, mentha oil gained 0.58 per cent to Rs 453 per kg, while potato lsot 0.93 per cent to Rs 627 per quintal.