Commodity Trading Tips for Wheat by KediaCommodity

Ajay Kumar Kedia 16 May 2013

Wheat Wheat yesterday traded with the positive node and settled 0.93% up at 1526 as gains in spot demand supported prices. Wheat arrivals have been low this year in the market and arrivals are likely to remain sluggish. During the current procurement season over 58.22 lakh tonnes (LT) of wheat have so far arrived in grain markets of Haryana state. The Government agencies have procured over 58.13 LT of wheat at the minimum support price and 8,645 tonnes of wheat has been purchased by the private millers and traders. During ongoing Rabi Marketing Season, India Government agencies have procured more than 234 lakh tonne wheat. As per data available from the fields till 10 May, 2013, total wheat procured during the season in various states is 234, 54,846 tonnes. So far Punjab has led the procurement 105,90,390 tonne followed by Haryana with 57,95,213 tonne and Madhya Pradesh with 56,25,527 tonne. Rajasthan and UP also made significant procurement during the season with 9,55,765 tonne 4,75,416 tonne respectively. Wheat procurement by India has risen by 12.5% to 17.11 mn tons so far in 2013-14 marketing season that started this month. The wheat procurement stood at 15.21 mn tons during the same period, last year. Procurement of wheat, a major rabi crop, begins from April and continues till June. A sharp rise in arrival of the grain has increased the government's procurement in Punjab and Madhya Pradesh, while it is lagging in Haryana. In Delhi wheat prices gained9.6 rupee to end at 1489.1 rupees per 10 kg. In yesterday's trading session Wheat has touched the low of 1510 after opening at 1510, and finally settled at 1526. For today's session market is looking to take support at 1513.7, a break below could see a test of 1501.3 and where as resistance is now likely to be seen at 1534.7, a move above could see prices testing 1543.3.