Friday, February 6, 2009

Corn Futures in India Drop

Few buyers show up to by in the Indian corn spot market, driving corn futures in India down.

India corn futures ended lower on Friday on sudden absence of buying by local feedmakers and exporters in the spot market, analysts said.

"Both domestic feedmakers and export enquiries were not seen in the market today," said Rahimtullah, a trader in Nizamabad, a major trading hub.

Prices fell by 4 rupees to 820 rupees per 100 kg in Nizamabad spot market.

Prices showed some positive trend in the past one month as demand from local poultry feed-makers started to pick up recently after being tamped down in recent months by a bird flu outbreak.

Government agencies, another major group of buyers in the past one month, almost stopped buying in the last 3-4 days, a trader said.

February futures NMZG9 on the National Commodity and Derivatives Exchange ended at 848 rupees per 100 kg, down 1.39 percent.

India corn futures should rise going forward though, as government agencies and other big players come back to the table.