December 14, 2007

India corn prices gain momentum on poultry sector demand 

The National Commodities and Derivatives Exchange (NCDEX) corn futures were quoted higher, buoyed by a strong demand from the poultry sector.

Corn consumption needs are expected to reach 8.21 million tonnes during 2008-09 season, according to the latest US Grain Council India report.

Overnight gains in Chicago Board of Trade (CBOT) corn futures also had spillover impact on the domestic prices.

CBOT corn futures rallied to six-month highs Wednesday, following a broad-based speculative buying in commodities.

Strong export demand for Indian corn was noticed for the South East Asian region. Additionally, India is estimated to export at least 1 million tonnes preferred for its lower price compared to other exporting countries.

Corn for January delivery on the NCDEX opened at INR760 (US$19.34), moved in the range of INR754 (US$19.18) - INR764 (US$19.43) and was trading at INR763.50 (US$19.42), up by 0.79 percent at 12:01 IST.