Commodity Trading Tips for Wheat by KediaCommodity

WheatWheat yesterday traded with the negative node and settled -0.72% down at 1244 as an expected rise in supplies from the new season crop. Madhya Pradesh is expecting bumper production of wheat this year due to favourable weather conditions. India, the world's second largest producer of wheat, is expected to harvest a record crop for the second straight year. Prolonged winter weather and recent rainfall may delay wheat harvesting by at least a week in India's key grain producing northern states of Punjab and Haryana. Harvesting in Punjab and Haryana, the country's second and third biggest producers of wheat, usually begins from April 1. In January and February, the weather was colder than usual in northern states, data with the weather department showed. The government usually buys wheat from farmers for its welfare schemes through its agencies at pre-agreed rates known as minimum support prices. The government plans to buy 31.9 million tonnes of wheat in the marketing year from April 1, 12.7 percent higher than the 28.3 million tonnes bought from farmers in 2011/12, the food ministry said. In Delhi wheat prices gained 2 rupee to end at 1291.25 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1241 after opening at 1249, and finally settled at 1244. For today's session market is looking to take support at 1237, a break below could see a test of 1230 and where as resistance is now likely to be seen at 1255, a move above could see prices testing 1266.

Trading Ideas:

Wheat  trading range for the day is 1230-1266.

Wheat settled down as an expected rise in supplies from the new season crop

Madhya Pradesh is expecting bumper production of wheat this year due to favourable weather conditions

The government plans to buy 31.9 million tonnes of wheat in the marketing year from April 1

In Delhi wheat prices gained 2 rupee to end at 1291.25 rupees per 10 kg.

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