Commodity Trading Tips for Wheat by KediaCommodity

Ajay Kumar Kedia 2 January 2013

Wheat Wheat yesterday traded with the negative node and settled -0.13% down at 1562 overall market was traded in the range as wheat mill quality reported higher in open market on good buying support from local traders amid weak supply from producing belts like Punjab and Haryana. As the rabi sowing season nears its end, acreage of most crops, barring wheat, is almost the same as last year, raising hopes that if the weather remains benign in the next few months, India could have a bumper rabi harvest. The acreage under wheat, which is marginally down compared with last year, as on Thursday is not likely to have much impact on the output as the area in the four major wheat growing states Punjab, Haryana, MP and UP - is almost same as last year. The shortfall in acreage is only in Maharashtra, which is not a big producer of wheat. According to the latest government data, wheat has been sown in around 27.27 mln ht as on December 27, just 1.45 per cent less than last year. The acreage is almost 1mln ht more than the normal area. The only let- down has been in rabi rice, which has been planted in around 187,000 hectares as on December 27, almost 38 per cent less than last year because of poor northwest monsoon rains in south. The IMD said northwest rains have been 19 per cent below normal till December 19, since October. In Delhi wheat prices dropped -0.1 rupee to end at 1573 rupees per 10 kg. For today's session market is looking to take support at 1559.67, a break below could see a test of 1557.33 and whereas resistance is now likely to be seen at 1564.67, a move above could see prices testing 1567.33.