Commodity Trading Tips for Wheat by Kedia Commodity

Ajay Kumar Kedia 2 July 2013

Wheat Wheat yesterday settled up 0.32% at 1584 due to weak arrivals of wheat in local mandies along with strong demand of private millers at higher levels. State-run Food Corporation of India (FCI) has exported 4.19 million tonnes of wheat, valued at more than Rs 7,000 crore, in the past one year. Due to surplus wheat stock, the government had permitted FCI to export 4.5 million tonnes of the grain in July last year. The deadline for export is June 30, this year. The Food Corporation of India (FCI) said Indian wheat exports fetched a price of $300.10 per tonne in the international market, according to the last tender opened. The latest lot up for sale crossed the July future price of the Chicago Board of Trade (CBOT) of $260 per tonne. FCI has exported about four million tonne (MT) of wheat so far, securing an average of $311,69 per tonne. Government of India decided to sale 10 mn tons of wheat and 500,000 tons of rice from government inventories in the open market. As of June 1, 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. India's overall wheat production for 2012-13 year is estimated to be at 96mn tons, according to the Directorate of Wheat Research (DWR). Meanwhile, country's wheat production is projected to be at 93.62 mn tons for 2012-13 (July to June) crop year, according to the third advance estimates by the Ministry of Agriculture. India's wheat output stood at 94.88 mn tons in 2011-12 crop year. In Delhi wheat prices dropped -4 rupee to end at 1569 rupees per 10 kg. Now Wheat is getting support at 1578 and below same could see a test of 1573 level, And resistance is now likely to be seen at 1587, a move above could see prices testing 1591.