OUTLOOK-India corn, kapashkhali seen down on higher supplies

MUMBAI Mon Dec 3, 2012 6:29pm IST

MUMBAI Dec 3 (Reuters) - Indian corn futures are likely to fall this week, after losing over 7 percent in the previous week, as supplies from the new crop rose and a decline in overseas prices outweighed buying by poultry feed makers.

On Monday, the key January contract on the National Commodity and Derivatives Exchange (NCDEX) rose 0.21 percent to 1,436 rupees per 100 kg (around $6.7 per bushel) on short-covering after falling over 7 percent in the previous six sessions.

Last week, volumes in Indian corn futures shifted to January contract from December.

"Daily supplies in major spot markets have jumped to 6,000-6,200 bags (1 bag=100 kg) last week from less than 3,000 bags in the week before," said Shreedhar Reddy, a trader based in Davangere Karnataka, India's largest producer of corn.

Farmers have accelerated harvesting as they need to clear fields for planting winter crops, resulting in higher supplies, Reddy said.

Softening global corn prices, which could cut demand for the Indian produce in overseas markets, also put pressure on local prices, traders said.

However, aggressive buying by poultry feed makers amid a projected decline in corn output in summer-sowing season of the current crop could limit the downtrend in prices, traders said.

Demand for poultry products usually rises during winter as people eat more fatty foods than in the high temperatures of the summer.

In Chicago, the key December corn contract on the CBOT was up 1 percent at $7.55-1/2 per bushel at 1208 GMT. The contract fell nearly 1.5 percent in previous two sessions.

In the Nizamabad spot market, corn prices fell by 10 rupees to 1,426 rupees per 100 kg, from previous closing on Saturday.

KAPASHKHALI

Indian cottonseed oilcake, or kapashkhali, futures fell on Monday, and are likely to extend losses on rising cotton supplies in spot markets amid a decline in demand.

Kapashkhali is a by-product of cottonseed and is used as a cattle feed, mostly for dairy animals in northern India.

"Cotton supplies are rising in spot markets and demand is falling due to higher availability of grass (as fodder) ," said Manjit Singh, a trader based in Ludhiana, Punjab.

The key January contract on the NCDEX closed down 0.71 percent at 1,407 rupees per 100 kg.

Last week, volumes in Indian cottonseed oilcake futures shifted to January contract from December. ($1 = 54.3950 rupees) (Reporting by Deepak Sharma; Editing by Anand Basu)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

WTO

REUTERS SHOWCASE

Factory Activity

Factory Activity

Factories post fastest growth for 17 months in July  Full Article 

Reviving Infosys

Reviving Infosys

CEO Sikka says to improve business with new growth avenues  Full Article 

Outlook Slashed

Outlook Slashed

ArcelorMittal cuts outlook as ore prices hit mining  Full Article 

Car Launch Ahead

Car Launch Ahead

Tata Motors bets on new sedan to revive weak India sales.  Full Article 

Gold Smuggling

Gold Smuggling

In cat-and-mouse game, India uncovers new gold smuggling route.  Full Article 

Re-gaining Momentum

Re-gaining Momentum

China's factories spring to life as global trade reawakens  Full Article 

Coal India

Coal India

Some Coal India mines may be run by foreign firms - minister  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage