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Maize price hit the lower circuit on the National Commodity & Derivatives Exchange (NCDEX) in early Monday trade on heavy selling by traders amid expectations of bumper output this kharif season.
The commodity for delivery in June, August, July and September plunged by 4 per cent to trade at Rs 1376 a quintal, Rs 1440 a quintal, Rs 1414 a quintal and Rs 1466 a quintal respectively.
With the Indian Meteorological Department (IMD), the agency responsible for rainfall forecast, announced the normal monsoon with around 98 per cent rainfalls this year, the output of kharif-sown agri crops are expected to show a modest output this season.
The United States Department of Agriculture (USDA) forecast India’s total corn (maize) output at 21 million tonnes this year as against 21.57 million tonnes in the previous season.
Surprisingly, USDA has also forecast corn output to set the highest record record at 97.75 million tonnes in the United States which may keep global price of the commodity under pressure.
Consequently, India’s maize exports are expected to remain lower by over 30 per cent this year from the level of 4.8 million tonnes last year.
