NCDEX Maize (Zea mays) belongs to the grains family Graminae and is known as Queen of Cereals due to its diverse uses. Also called corn, maize requires moderate climate for growth, excess or deficient rains adversely affect yields as well quality. It grows well in loamy soils. Maize in India is grown in both kharif (80%) and rabi (20%) seasons. In kharif, it is sown in June-July till mid-August and harvested from mid-September. The arrivals extend from late September to February. The major states are Karnataka, Andhra Pradesh, Maharashtra, Madhya Pradesh and Uttar Pradesh. In rabi, maize is grown in Bihar and coastal region of Andhra Pradesh. The arrivals start from late March and extend upto June.
USA, China and Brazil are the top three maize producing countries in the world. Prominent exporters of maize are USA, Argentina and Brazil while chief importers are Japan, EU, Malaysia, Taiwan, Indonesia etc. India ranks among the top 10 maize growing countries in the world and exports to Bangladesh, Nepal, Sri Lanka, the Middle East and South East Asian countries. World over, maize is primarily a feed crop even as it finds growing usage as a fuel (bio-ethanol), in value added foods and other industrial applications
Factor Influencing Prices
Maize production and consumption are largely stable, but price volatility is intricately linked to seasonal changes in consumer preferences of poultry products, export demand and demand for starch derivatives. Exchange traded maize futures are ideal for price risk management needs of the poultry farmers, exporters and starch manufacturers. Those with no direct exposure to maize trade or consumption can also benefit by undertaking 'cash-and-carry' arbitrage and 'calendar spread'. Speculators can take directional view on future prices and accordingly take positions in maize futures.
International Futures
Maize/Corn, being the largest produced cereal in the world, is traded on several exchanges across the globe. In fact, the corn contract on CBOT was among the first to be launched for futures trading. The contract specifications and other details of maize futures contracts on some of the leading exchanges can be obtained from the following links:
USA, China and Brazil are the top three maize producing countries in the world. Prominent exporters of maize are USA, Argentina and Brazil while chief importers are Japan, EU, Malaysia, Taiwan, Indonesia etc. India ranks among the top 10 maize growing countries in the world and exports to Bangladesh, Nepal, Sri Lanka, the Middle East and South East Asian countries. World over, maize is primarily a feed crop even as it finds growing usage as a fuel (bio-ethanol), in value added foods and other industrial applications
Factor Influencing Prices
- Changes in production
- Seasonality of demand of poultry products
- Export and import regulations
- Carryover stocks
Maize production and consumption are largely stable, but price volatility is intricately linked to seasonal changes in consumer preferences of poultry products, export demand and demand for starch derivatives. Exchange traded maize futures are ideal for price risk management needs of the poultry farmers, exporters and starch manufacturers. Those with no direct exposure to maize trade or consumption can also benefit by undertaking 'cash-and-carry' arbitrage and 'calendar spread'. Speculators can take directional view on future prices and accordingly take positions in maize futures.
International Futures
Maize/Corn, being the largest produced cereal in the world, is traded on several exchanges across the globe. In fact, the corn contract on CBOT was among the first to be launched for futures trading. The contract specifications and other details of maize futures contracts on some of the leading exchanges can be obtained from the following links:
- CME
- DCE
- TGE
- JSE
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