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OUTLOOK-Indian corn futures seen stable; kapashkhali down
MUMBAI, Sept 14 |
MUMBAI, Sept 14 (Reuters) - Indian corn futures rose nearly 1.5 percent on Friday on lower supplies in the spot market and are likely to remain stable as local traders hold positions as they await supplies from the new season crop.
Despite lower supplies, corn prices in India are unlikely to rise as falling overseas prices hurt export demand, traders said.
"Arrivals from the new season crop have started hitting the market but they are of very poor quality, and it pushed up p rices of good quality corn," said Shankarji, a trader from the Karimnagar spot market in the southern state of Andhra Pradesh.
At current levels, there is no price parity for exports. Once arrivals pick up, prices are likely to fall and till then prices are likely to remain stable, he said.
Farmers in India start planting of corn, mostly in rain-fed areas, with the arrival of the monsoon in June-July, and begin harvesting in October-November, though this year there was a delay.
On Friday, the Oct. contract on the National Commodity and Derivatives Exchange (NCDEX) provisionally closed up 1.47 percent at 1,383 rupees ($24.9) per 100 kg (about $6.4 per bushel).
In the Nizamabad spot market in Andhra Pradesh, corn fell 10 rupees to 1,490 rupees ($26.89) per 100 kg (around $6.9 per bushel).
At 1155 GMT, the key Dec. corn contract on the Chicago Board of Trade was up 0.81 percent a t $7.8 per bushel.
Despite gains on Friday, corn prices in the United States are likely to end the week more than 3 percent down, its biggest weekly fall since June 17, as the USDA's corn harvest beat analysts' average estimates.
Indian cottonseed oilcake, or kapashkhali, futures rose on Friday as rains could delay cotton harvesting in northern India, though traders expect it to fall next week on availability of grass as fodder due to an improvement in rains.
Kapashkhali is a by-product of cottonseed and is used as cattle feed, mostly for dairy animals in northern India. Its prices usually fall during the rainy season on higher availability of grass, which is used as an alternative to costlier animal feed.
"Recent rain could delay cotton harvesting and is weighing on sentiment," said Ranjit Mankharia, a trader based in Bikaner.
Farmers with irrigation facilities in Punjab and Haryana start cotton planting in May-June and harvest after mid-September.
The key Dec. contract on the NCDEX was up 0.92 percent at 1,419 rupees per 100 kg.
The NCDEX does not have October- or November-expiry contracts in cottonseed oilcake because these are months of lean supply. (Reporting by Deepak Sharma; Editing by Sunil Nair)
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