Commodity Trading Tips for Wheat by Kedia Commodity

Ajay Kumar Kedia 1 August 2013

Wheat Wheat yesterday settled up 0.32% at 1570 on short covering tracking firm spot demand after prices seen pressure on the account of weak export demand along with weak demand by flour millers at higher levels. Wheat stocks at government warehouses fell 4.5 per cent from June to 42.4 million tonnes, government data showed, but still reflected overflowing grain silos. India, the world's second biggest grower of wheat and rice, needs to maintain wheat stocks of 17.1 million tonnes on July 1, when the new crop year starts, for its programmes to provide cheap grains to the poor. 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. 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. 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. Technically market is under short covering as market has witnessed edged up in open interest by -3.8% to settled at 5310 while prices up 5 rupee, now Wheat is getting support at 1564 and below same could see a test of 1558 level, And resistance is now likely to be seen at 1574, a move above could see prices testing 1578.