Commodity Trading Tips for Wheat by KediaCommodity

Ajay Kumar Kedia 2 May 2013

Wheat Wheat settled flat due to weak global demand along with fresh supplies in local mandies. As per the latest monthly report release by the United States Department of Agriculture (USDA ), the global wheat consumption at 672.53 million tonnes in April 2013, down 1.17 million tonnes from last month due to lower feed and residual use. World wheat feed and residual use are lowered 5.2 million tonnes with much of the decline resulting from a 3.0-million-ton reduction in China. World wheat ending stocks for 2012/13 are projected higher by 4 million tonnes this month at 182.70 million tonnes. Higher projected ending stocks are projected in North Africa, EU-27, Iran, and the United States. Moreover, fresh supplies of around 5-7 lakh bags were seen in the major producing states of Gujarat , Madhya Pradesh and Rajasthan. As per latest official data, Indian procurement agencies have procured 19.40 million tonnes of wheat as on 29th April 2013, up almost 2.10% from the last year in the same period. Data revealed that wheat procurement in Punjab reached 8.90 million tonne in the ongoing rabi marketing season. While other states such as Haryana and Madhya Pradesh reported 5.10 and 4.60 million tonnes respectively in the current season. In Delhi wheat prices gained 5 rupee to end at 1455 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1491 after opening at 1505, and finally settled at 1502. For today's session market is looking to take support at 1493.7, a break below could see a test of 1485.3 and where as resistance is now likely to be seen at 1507.7, a move above could see prices testing 1513.3.