Commodity Trading Tips for Wheat by KediaCommodity

Ajay Kumar Kedia 17 April 2013

Wheat Wheat yesterday traded with the positive node and settled 0.28% up at 1430 on renewed buying interest for new crop. India's wheat stocks in government warehouses were around 24.2 mn tons as of April 1, down by 11% from February. Indian government has asked its companies to export 4.5 mn tons of wheat and offered 5 mn tons in direct deal to private traders. Global wheat supplies for 2012/13 are raised 2.9 million tons on higher world beginning stocks with the biggest increases for EU-27, Morocco, and Mexico, as per USDA WASDE report. The increased stocks primarily reflect balance sheet revisions that lower 2011/12 domestic wheat use for several countries this month. Global 2012/13 production is nearly unchanged, but notable changes are made for some countries. Production is raised 0.5 million tons for Morocco with an upward yield revision. EU-27 production is decreased 0.2 million tons with lower reported output for the United Kingdom. Saudi Arabia production is lowered 0.2 million tons with lower area. Smaller reductions are made for Chile and Tunisia. Global wheat trade is projected higher for 2012/13 with exports raised 2.6 million tons. The global wheat consumption at 672.53 million tonnes in April 2013, down 1.17 million tonnes from last month due to lower feed and residual use. In Delhi wheat prices gained 3.75 rupee to end at
1451.25 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1425 after opening at 1425, and finally settled at 1430. For today's session market is looking to take support at 1424.3, a break below could see a test of 1418.7 and where as resistance is now likely to be seen at 1436.3, a move above could see prices testing 1442.7.