MUMBAI Dec 3 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
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,
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
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.
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)