April 23, 2008

Indian corn futures to weaken on larger output forecasts

India's corn futures are estimated to fall on Wednesday as the federal government released a higher estimate for corn output, analysts said.

The country's winter crop arrivals are at a peak and India revised its 2007/08 output estimates to 18.54 million tonnes from 16.78 million earlier.

Last year, India produced 15.1 million tonnes of corn.

Analysts said that the losses could be trimmed on strong export demand for corn.

The country is expected to reap a total of 2.1 million tonnes of corn by May.

On Tuesday, the India's May corn futures on National Commodity and Derivatives Exchange (NCDEX) closed up 0.43 percent at INR699 (US$17.50) per 100 kilogrammes.