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India corn futures reverse gains on profit-taking.


Date: 31-01-2009
Subject: India corn futures reverse gains on profit-taking
 MUMBAI, Jan 30 (Reuters) - India corn futures reversed early gains to end slightly lower Friday on profit-taking, analysts said.

They had opened higher in early trade on renewed local demand, robust export demand from Bangladesh and Sri Lanka and continued buying by government agencies.

Prices had been softening for the last three months as a fall in local demand due to a bird flu outbreak coincided with the global slowdown, hitting exports, analysts said.

In addition, the Food Corp of India (FCI) and state-level agencies have been aggressively buying corn in the past two weeks to keep prices from falling below the state-set 840 rupees per 100 kg, traders and analysts said.

"Continuous demand from the poultry feed industries and limited supply of stock support the prices," said Karvy Comtrade Ltd in a note.

February futures NMZG9 on the National Commodity and Derivatives Exchange ended at 849 rupees per 100 kg, down 0.06 percent.

Spot prices fell by 11 rupees to 828 rupees per 100 kg in Davengere, a major trading centre.


Source : REUTERS INDIA

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