Commodity Trading Tips for Wheat by Kedia Commodity

WheatWheat yesterday settled down -0.81% at 1598 due to mounting new supplies in local mandies along with strong production estimates in the current year. The US Department of Agriculture (USDA) has pegged India's wheat production at 87 million tonne (MT) this year, which is lower by seven percent from the government's latest estimate of 93.6 MT. The USDA has revised downward India's wheat production estimate from 92 MT to 87 MT due to lower crop yields. Wheat crop was sown in the 2012-13 crop year (July-June) and is being marketed in 2013-14 starting April. As per the latest release from the Food Corporation of India (FCI) , the agency has procured around 24 million tonnes of wheat from all the producing states, down almost 17 % from the corresponding period last year the. Traders estimated that India's overall procurement is expected to be around 25-26 million tonnes against the initial target of 44 million tonnes. The sources also suggested that the overall wheat supplies for current year is expected to be around 80-85 million tonnes against 93-94 million tonnes that was expected by the government. The strong decline is mainly on the heels of restricted supplies of wheat by farmers at major mandies. The majority of the farmers are expecting strong surge in wheat demand in the lean arrival period. In Delhi wheat prices dropped -4 rupee to end at 1590 rupees per 10 kg. Now Wheat is getting support at 1591 and below same could see a test of 1585 level, And resistance is now likely to be seen at 1608, a move above could see prices testing 1619.

Trading Ideas:

Wheat trading range for the day is 1585-1619.

Wheat ended with losses due to mounting new supplies in local mandies along with strong production estimates.

The Indian government's wheat procurement this year has missed its estimate by nearly half.

NCDEX accredited warehouses wheat stocks gained by 764 tonnes to 14700 tonnes.

In Delhi wheat prices dropped -2.5 rupee to end at 1617.5 rupees per 10 kg.