Commodity Trading Tips for Wheat by KediaCommodity

WheatWheat yesterday traded with the negative node and settled -0.81% down at 1226 tracking weakness in spot market demand on prospects of higher production in the ongoing winter sowing (rabi) season and on expected increase in supplies in spot markets from the new season crop. India is expected to produce a record 88.31 million tonnes of wheat in 2012, a farm ministry forecast said on Friday, raising hopes the world's second-biggest producer will allow additional exports to trim bulging reserves. In 2012, India will pay nearly 10 percent more than in 2011 to farmers for buying wheat to ensure better returns to growers as the inflation rate hovers around 9 percent, the government announced last week. The large Australian crops add to already stout world supplies, with USDA last week estimating end-of-year world inventories will reach record levels. World wheat ending stocks are projected up 3.1 million tons to 213.1 million this month, beating a historical record of 1999/00 by 2.4 million tons. Stocks are up because of an increase in global wheat production and a drop in consumption. In Delhi wheat prices gained 4.45 rupee to end at 1247 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1211 after opening at 1238, and finally settled at 1226. For today's session market is looking to take support at 1211, a break below could see a test of 1196 and where as resistance is now likely to be seen at 1241, a move above could see prices testing 1256.

Trading Ideas:

Wheat  trading range for the day is 1196-1256.

Wheat ended weak tracking weakness in spot market demand on prospects of higher production

India will pay nearly 10% more than in 2011 to farmers for buying wheat to ensure better returns to growers

NCDEX accredited warehouses wheat stocks gained by 311 tonnes to 2835 tonnes.

In Delhi wheat prices gained4.45 rupee to end at 1247 rupees per 10 kg.