Indian corn seen up on value buying
Corn futures in India are expected to trade higher next week on some value buying supported by lower-than-expected supplies from the state of Bihar, while a slow pace of sowing in the United States is also seen aiding sentiment.
Supplies from the new season winter-sown crop in Bihar have been lower than expected due to unfavourable weather, traders said.
Maize is cultivated twice a year, during summer and winter, in Asia's largest exporter of the grain, with a major contribution coming from the summer crop.
"Prices are expected to pick up as they are at a comfortable level now. Demand from the poultry and starch industry should improve prices," said Kanhaiyala Agarwal, an exporter and trader based in Bangalore.
The key June contract for maize rabi rose 0.87 percent to close at 1,157 rupees ($5.47 per bushel) per 100 kg on the National Commodity and Derivatives Exchange (NCDEX). It has fallen more than 7 percent since the close on March 23.
Demand for poultry products drops in the summer as people eat less fatty foods due to high temperatures.
India's corn output is expected to be 21.82 million tonnes in 2012/13 as per the farm ministry's third advance estimate as against 21.76 million tonnes a year earlier.
Agarwal expects corn prices to rise by 50 rupees per 100 kg in the short term.
In Chicago, the key July corn contract on CBOT was down 0.5 percent at $6.45-1/2 per bushel at 1319 GMT.
Chicago corn futures edged lower, following solid gains in the previous session as the market awaited a U.S. government report on farm demand and supply later on Friday.
Drier weather by the weekend into early next week will boost U.S. corn plantings that have fallen to the slowest pace in nearly three decades, an agricultural meteorologist said on Friday.
Indian cottonseed oilcake, or kapaskhali, futures are likely to trade up next week on a pickup in spot demand from local feed makers.
Kapaskhali is a by-product of cottonseed and is used as cattle feed, mostly for dairy animals, in northern India.
"Demand from local feed makers is improving and this is likely to support cottonseed oilcake prices. Supplies have also come down in the local market," said Ambika T.B, an analyst from Karvy Comtrade.
The key June contract on the NCDEX closed 0.56 percent higher at 1,431 rupees per 100 kg. ($1 = 54.2300 Indian rupees) (Reporting by Meenakshi Sharma; Editing by Prateek Chatterjee)
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