Maize: Prices to gain momentum

Apart from this, prices are also likely to take cues from the kharif sowing once the south west monsoon hits Kerala coast in the first week of June

May 29, 2013 05:05 IST India Infoline News Service

Maize output in the rabi season is estimated to be 8% higher as compared to previous year. In the short term (till mid of June) Maize/ corn prices are expected to initially witness selling pressure as the arrivals from the rabi crop have gained momentum. Apart from this, prices are also likely to take cues from the kharif sowing once the south west monsoon hits Kerala coast in the first week of June.

If southwest monsoon rains are in time and witness proper advancement, farmers may cover more area under the crop as they have earned better profits from this grain during the previous season. However, downside in the prices is limited as according to the seasonality pattern, prices observe a rise from June through August due to revival in the demand. Thus, in the medium term (mid of June onwards) prices are likely to find support and move upwards.

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