Commodity Trading Tips for Wheat by KediaCommodity

Ajay Kumar Kedia 20 May 2013

Wheat Wheat yesterday traded with the negative node and settled -0.97% down at 1538 after a brief spell of buoyancy, as arrivals rise in the market due to the new season harvest. Also, fresh buying by flour mills to meet the festival and marriage season, supported the sentiment. 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. The agency stated that the overall wheat procurement in the 2013-14 is expected to culminate at 26-28 million tonnes. This might be decline by 10-12 million less than last year. The lower procurement is primarily on the account of Officials from Madhya Pradesh, Punjab and Uttar Pradesh. The lower arrivals in all the major procurement states have witnessed strong decline in wheat procurement in the current year. The total daily arrivals of wheat in major states such as Haryana and Punjab have reduced to 8000-10000 bags. Moreover, weak supplies were already reported in Uttar Pradesh due to strong offtake by private millers at higher levels. India’s wheat crop is expected to be much lower than 93.6 million tonnes forecast by the Agriculture Ministry in its third advanced estimates for 2012-13. This is seen to be borne out by the current market arrivals and official procurement trends, which are significantly lower than their corresponding last year levels. In Delhi wheat prices gained0.4 rupee to end at 1523.75 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1536 after opening at 1556, and finally settled at 1538. For today's session market is looking to take support at 1530.3, a break below could see a test of 1522.7 and where as resistance is now likely to be seen at 1551.3, a move above could see prices testing 1564.7.