Commodity Trading Tips for Wheat by KediaCommodity

Ajay Kumar Kedia 29 July 2013

Wheat Wheat yesterday settled down -0.64% at 1563 tracking weakness in spot demand amid profit booking after prices gained last session due to weak arrivals of wheat in local mandies along with strong demand of private millers at higher levels. India's wheat production is expected to fall 92.46 mn tons from its previous estimates of 93.62 mn tons as a result of unfavourable weather conditions in key wheat growing areas of Haryana and Madhya Pradesh, as per government estimates. In the domestic market, the lower production estimates may positively impact wheat prices in the long term. 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. Traders estimated that India's overall procurement is expected to be around 25-26 million tonnes against the initial target of 44 million tonnes. 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. 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. Now Wheat is getting support at 1559 and below same could see a test of 1554 level, And resistance is now likely to be seen at 1572, a move above could see prices testing 1580.