Commodity Trading Tips for Wheat by KediaCommodity

WheatWheat yesterday traded with the positive node and settled 0.08% up at 1252 as some buying at lower levels due to possibility of removal in wheat exports products along with hike in wheat minimum support price in Uttar Pradesh. As per latest update from Vietnam Commercial Affairs Office in India, the Indian government is likely to withdraw the export limits from wheat product exports in the near term due to expectation of bumper production in the current year. According to the official data, India has exported 1.27 lakh tonnes of wheat products till January 23, 2012 against the original 650,000-ton limit. These were exported in the form of semolina and wheat flour. Moreover, Uttar Pradesh Government has increased the Minimum Support Price of wheat from Rs 1,080 per quintal to Rs 1,284 per quintal for the current marketing season ( April- June end ). This might provide some supports to the prices at lower levels. Uttar Pradesh government is procuring around 10 lakh tonnes of wheat during the marketing season. In Delhi wheat prices gained 0.85 rupee to end at 1292.5 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1250 after opening at 1253, and finally settled at 1252. For today's session market is looking to take support at 1250, a break below could see a test of 1248 and where as resistance is now likely to be seen at 1254, a move above could see prices testing 1256.

Trading Ideas:

Wheat  trading range for the day is 1247-1255.

Wheat remained flat but spot remained firm due to possibility of removal in wheat exports products

India has exported 1.27 lakh tonnes of wheat products till January 23, 2012 against the original 650,000-ton limit

U.P Government has increased the MSP of wheat from Rs 1,080 per quintal to Rs 1,284 per quintal

In Delhi wheat prices gained 0.85 rupee to end at 1292.5 rupees per 10 kg.