Commodity Trading Tips for Wheat by KediaCommodity

WheatWheat yesterday settled down -0.19% at 1565 amid sluggish trading activities at the spot market. Rains in various parts of the country discouraged the normal course of trading and lower demand against sufficient availability continued to weigh on market fundamentals. Private exporters are not active as outlook for global wheat market remains bearish. With declining prices in Black Sea region and US, parity for Indian private exporters turned negative. Persisting good rainfall activities are expected to boost India's wheat production this year. Higher than expected projections on world wheat production also pressurize the commodity movement in the global market. Persisting good monsoon rains are expected to support wheat crop this year.  A combined wheat production by Australia and Canada is expected to reach higher at 683.1 mn tons in the year that started from July 2, according to International Grains Council. Government of India decided to sale 10 mn tons of wheat and 500,000 tons of rice from government inventories in the open market. Wheat inventories in the country stood around 44 mn tons, more than double of the government's minimum requirement. Persisting good monsoon rainfall is expected to support higher crop output this year. As per the latest release from the Food Corporation of India (FCI) , the agency has procured around 24 million tonnes of wheat from all the producing states, down almost 17 % from the corresponding period last year the. Now Wheat is getting support at 1553 and below same could see a test of 1542 level, And resistance is now likely to be seen at 1572, a move above could see prices testing 1580.

Trading Ideas:

Wheat trading range for the day is 1540-1578.

Wheat ended with losses amid sluggish trading activities at the spot market.

Private exporters are not active as outlook for global wheat market remains bearish.

Rains in various parts of the country discouraged the normal course of trading and lower demand against sufficient availability.