Commodity Trading Tips for Wheat by Kedia Commodity

Ajay Kumar Kedia 18 July 2013

Wheat Wheat yesterday settled down -0.13% at 1590 on the account of weak export demand along with weak demand at higher levels. During harvest, the Government had offered about five mt for exports through private players, to make storage space for the new crop. However, there was no response from the trade as the price fixed by the Government was higher than global prices. Wheat stocks with Government stood at 42.3 mt, of which more than a fourth was stored in temporary sheds that could result in the grains getting spoiled due to rain. The Government has procured about 25 mt this year, lower than last year. This is because production this year is estimated to be 80-84 mt. The Government is yet to come out with its final estimate for wheat output. Wheat exports have slowed in recent weeks as buyers, mainly from the Far-East, have switched over to Black Sea Origin grains, which are cheaper by about 15-20 per cent over the Indian produce. 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. In Delhi wheat prices remains unchanged at0 rupee to end at 1569 rupees per 10 kg. Technically market is under fresh selling as market has witnessed fell in open interest by % to settled at while prices down -2 rupee, now Wheat is getting support at 1588 and below same could see a test of 1585 level, And resistance is now likely to be seen at 1595, a move above could see prices testing 1599.