Commodity Trading Tips for Wheat by KediaCommodity

WheatWheat yesterday traded with the positive node and settled 2.09% up at 1613 on buoyant consumer demand and on expectations of higher exports. The surge in wheat prices in the local market prompted the government to sell an extra 6.5 million tonnes to biscuit makers and flour millers at lower-than-market rates to check rising food prices. The additional supplies, coupled with the prospects of a bumper wheat harvest, the sixth in a row to exceed demand, are likely to put pressure on prices in the local market. Wheat shipments from India usually fetch lower prices due to quality concerns such as pest infestation and other bacterial infections, which can spoil some of the produce. India's State Trading Corp. received the highest bid at $317.21 per tonne from Dubai-based trading firm Emmsons Gulf in its wheat export tender. STC floated a tender offering 40,000 tonnes from the warehouses located in Chennai port, while MMTC offered 30,000 tonnes from the port of Mormugao on the west coast. In Delhi wheat prices dropped -4.55 rupee to end at 1590.45 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1577 after opening at 1580, and finally settled at 1613. For today's session market is looking to take support at 1587.3, a break below could see a test of 1561.7 and where as resistance is now likely to be seen at 1628.3, a move above could see prices testing 1643.7.

Trading Ideas:

Wheat  trading range for the day is 1562-1644.

Wheat ended with gains on buoyant consumer demand and on expectations of higher exports.

The surge in wheat prices in the local market prompted the government to sell an extra 6.5 million tonnes

The additional supplies, coupled with the prospects of a bumper wheat harvest.

In Delhi wheat prices dropped -4.55 rupee to end at 1590.45 rupees per 10 kg.



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