Wheat yesterday traded with the positive node and settled 2.08% up at 1520 on the news that drop seen in India's overall food production due to an uneven south-west monsoon could keep wheat prices high till March. Restricted arrivals in the market coupled with rising domestic demand, pushed wheat prices upwards last week, also support seen from the demand for Indian wheat, particularly in Southeast Asian countries, is very strong due to concerns over dry weather in the United States and lower harvesting in Australia, both key suppliers of the grain. India's wheat output is likely to be close to last year's record level of 93.90mts. According to official data, area sown under wheat has declined to 294.98 lakh hectares so far in the current rabi season, from 295.93 lakh hectares in the year-ago period. Wheat exports are expected to rise to a record 9.5 mln tn in the current fiscal year. While considering the global scenario, wheat sowing in Canada may expand by 10% and the acreage may climb by 5% to 10% from 9.63 million hectares last year. India's wheat output could slip about 3 percent in the crop year to June 2013 from a record 95 million tonnes, the farm ministry said, but the decline will not deter the government from exporting grain from its bulging inventories. India, the world's second-biggest producer of wheat after China, is expected to produce 92.3 million tonnes of the grain this crop year, exceeding annual consumption of around 76 million tonnes for the sixth year in a row. In Delhi wheat prices dropped -0.45 rupee to end at 1592.55 rupees per 10 kg. For today's session market is looking to take support at 1498.67, a break below could see a test of 1477.33 and whereas resistance is now likely to be seen at 1530.67, a move above could see prices testing 1541.33.
Wheat trading range for the day is 1477-1541.
Wheat rallied up on the news that drop seen in India's overall food production due to an uneven south-west monsoon.
Restricted arrivals in the market coupled with rising domestic demand, pushed wheat prices upwards.
India's wheat output could slip about 3 percent in the crop year to June 2013 from a record 95 million tonnes, the farm ministry said
In Delhi wheat prices dropped -0.45 rupee to end at 1592.55 rupees per 10 kg.
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