Commodity Trading Tips for Wheat by Kedia Commodity

Ajay Kumar Kedia 19 August 2013

Wheat Wheat yesterday settled down -0.25% at 1585 amid sluggish trading activities at the spot market. 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. As per the latest release from the United States Department of Agriculture (USDA), the total global production of wheat in 2013-14 is projected higher by 7.58 million tonnes from the last month to report at 705.38 million tonnes. Global wheat consumption for 2013/14 is raised 6.92 million tons to 706.81 million tons with increases in wheat feeding projected for a number of countries and higher food use expected for India and Iran. 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. Traders estimated that India's overall procurement is expected to be around 25-26 million tonnes against the initial target of 44 million tonnes. Market is under long liquidation as market has witnessed fell in open interest by -21.69% to settled at 4910 while prices down -4 rupee, now Wheat is getting support at 1582 and below same could see a test of 1579 level, And resistance is now likely to be seen at 1590, a move above could see prices testing 1595.