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 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.
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)
Trending On Reuters
India will release data on Monday showing it remains one of the fastest growing economies in the world, but economists are struggling to reconcile that rosy picture with ground realities like weak exports, investment, and flat corporate order books. Full Article