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OUTLOOK-Indian corn likely to slip on slow export demand
MUMBAI Oct 15 (Reuters) - Indian corn futures fell on Monday and could slip further this week as more supplies arrive in the spot markets and exporters buy less because overseas prices are weak, factors which are likely to outweigh higher buying by local poultry feed makers.
Corn futures have risen around 10 percent since the start of this month, to hit their highest level in four weeks on Oct. 9, but have since slipped nearly 1 percent as supplies improved.
"Exporters are staying away from the market as the prevailing prices are much higher than what exporters are willing to offer," said Poonamchand Gupta, a trader based in Nizamabad.
Exporters are looking for prices over 100 rupees lower than current spot prices of 1,330-1,370 rupees per 100 kg.
Poultry feed makers are buying in higher quantity as demand for poultry products rises during the winter, because people eat more fatty food than in the high temperatures of summer.
In Chicago, the key December corn contract on CBOT fell around 12 percent from a contract high of $8.49 per bushel on Aug. 10.
At 1237 GMT, the contract was down 1.23 percent at $7.43-1/2 per bushel.
The November contract on the National Commodity and Derivatives Exchange (NCDEX) closed down 1.39 percent at 1,280 Indian rupees per 100 kg (around $6.3 per bushel).
Indian cottonseed oilcake, or kapashkhali, futures rose on Monday on short-covering after falling over 5 percent in the last four sessions, but they could skid further this week as more seeds become available to crush as cotton supplies rise.
Kapashkhali is a by-product of cottonseed and is used as cattle feed, mostly for dairy animals in northern India.
"With the availability of green grass as fodder after rains, and higher availability of cotton seed for crushing with rising cotton supplies, prices are likely to fall," said Ranjit Mankharia, a trader based in Bikaner, Rajasthan.
India's cotton crop is likely to be down 5.4 percent in 2012/13, according to the Cotton Advisory Board. The previous year's was a record 35.3 million bales and though output will be lower, it will still be enough to meet local demand.
The key December contract on the NCDEX closed up 2.47 percent at 1,412 rupees per 100 kg.
The NCDEX does not have October or November expiry contracts in cottonseed oilcake because these are months of lean supply. ($1 = 52.8850 Indian rupees) (Reporting by Deepak Sharma; Editing by G.Ram Mohan)
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