MUMBAI Aug 17 Indian corn futures are likely to
rise this week on strong export demand and higher buying by feed
"Due to high prices in overseas markets, exporters are still
buying from the local market and it could keep prices up for
some time," said Faiyaz Hudani, senior analyst with Kotak
The front-month corn on Chicago Board of Trade (CBOT)
climbed to an all-time high of $8.43-3/4 a bushel last week on
severe drought-like conditions in key growing areas in the
High prices of soymeal, which is trading at 3,800 rupees per
100 kg in the local spot markets, are forcing feed millers to
mix higher quantity of corn in poultry and animal feed to cut
costs, thereby pushing corn prices up in both spot and futures
Corn and soymeal are used for making animal and poultry
On Friday, the key September contact on the
National Commodity and Derivatives Exchange (NCDEX) closed up
1.22 percent at 1,491 rupees per 100 kg.
Deficient rainfall in key growing areas of Karnataka and
Rajasthan is likely to keep prices firm for some time, traders
A consumer industry official has called for curbs on corn
exports from India and traders are worried that New Delhi could
concede to the demand as the government keeps an eye on rising
prices fanned by drought.
Indian cottonseed oilcake, or kapashkhali, futures are
likely to rise on lower rains in northern India, which have
raised concerns over the availability of fodder and triggered
Kapashkhali is a by-product of cottonseed used as cattle
feed, mostly in the north-western states of India.
The key September contract on the NCDEX closed
marginally up at 1,652 rupees per 100 kg on Friday.
"Rains in Punjab and Haryana are still deficient and farmers
are buying in higher quantity fearing shortage in near future,"
said Ranjit Mankharia, a trader based in Bikaner in Rajasthan.
Lower availability of soymeal in the local market has also
created demand for the oilcake and it could keep prices firm
until new stocks arrive in October, Mankharia said.
(Reporting by Deepak Sharma; Editing by Jijo Jacob)