Mumbai: Arise in maize acreage has led to optimistic projections this season as maize output is expected to reach 13.07 million tonnes (mt) in FY08, a top industry official said.
“The rise in maize acreage has contributed to the optimistic projections this season. Area under kharif cultivation stood at 7.46 million ha compared to 6.84 million ha sown last year,” National Commodity and Derivative Exchange (NCDEX)’s economist Sarah Koshie said. Maize output this kharif season is expected to reach 13.07mt, according to the government’s first advanced estimates for 2007-08, compared with 11.43mt produced last year.
Harvest time: Higher yield likely.
“Despite higher production expectations and increased arrivals in the market, maize prices are expected to be supported by demand from overseas feed manufacturers as well as steady procurement by starch manufacturers in the domestic market. Concerns of weather are also likely to put some pressure on prices,” Koshie said.
There are some indications of rains over Andhra Pradesh. The impact is likely to be moderated as harvest in this largest maize-producing state is almost complete. Weather in states such as Karnataka, Maharashtra and Gujarat remains clear and will assist harvest, NCDEX said in its report.
Near-month futures prices on NCDEX (December contract) is currently being quoted at Rs747.50 per quintal, a premium of nearly Rs50 over the current spot price in Nizamabad. The contract maturing in January 2008 is being quoted at Rs765 per quintal, a premium of Rs18 over the December contract.