Commodity Trading Tips for Wheat by KediaCommodity

Ajay Kumar Kedia 6 March 2013

Wheat Wheat yesterday traded with the negative node and settled -0.07% down at 1403 tracking weakness in spot demand amid adequate supplies from producing belts. India has exported 4.03 million tonnes of wheat so far in the current fiscal, of which more than half of the grain was government-held stock. During 2012-13 till February 22, a quantity of 4.03 million tonnes of wheat has been exported. The Wheat arrivals are witnessing a rising trend and spot prices are moderating. The crop has survived an output scare after weather worries in the middle of last month. Wheat spot markets in UP are witnessing good demand amid steady arrivals. In the next 15 days, the arrivals would flood the other markets heavily. 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 traders say 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. Last crop year, wheat output was 94.88 million tonnes. India also has huge stocks of wheat, estimated at 30.8 million tonnes on Feb. 1 and nearly four times its target, thanks to years of bumper harvests. In Delhi wheat prices dropped -1.65 rupee to end at 1590 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1395 after opening at 1403, and finally settled at 1403. For today's session market is looking to take support at 1397, a break below could see a test of 1391 and where as resistance is now likely to be seen at 1407, a move above could see prices testing 1411.