Wheat yesterday traded with the negative node and settled -0.4% down at 1245 on prospects of rise in output in the current season and higher stocks with government agencies.
India is expected to produce a record 88.31 million tonnes of Wheat in 2012, a farm ministry forecast said on Friday, raising hopes the world's second-biggest producer will allow additional exports to trim bulging reserves.
The estimated output is higher than the 86.87 million tonnes produced in the previous year and the country's annual consumption of 76 million tonnes.
The bumper stock could help India firm up a proposal to export wheat to Iran to partially settle its oil imports bill with Tehran.
The government agencies such as Food Corporation of India buy wheat from farmers at pre-agreed rates for distribution among poor at lower than market rates.
In Delhi wheat prices gained 2.3 rupee to end at 1241.05 rupees per 10 kg.
In yesterday's trading session Wheat has touched the low of 1243 after opening at 1252, and finally settled at 1245.
For today's session market is looking to take support at 1241.3, a break below could see a test of 1237.7 and where as resistance is now likely to be seen at 1250.3, a move above could see prices testing 1255.7.
Trading Ideas:
Wheat trading range for the day is 1238-1256.
Wheat dropped on prospects of rise in output in the current season and higher stocks
India is expected to produce a record 88.31 million tonnes of wheat in 2012
The bumper stock could help India firm up a proposal to export wheat to Iran
In Delhi wheat prices gained2.3 rupee to end at 1241.05 rupees per 10 kg.
Courtesy: Kedia Commodities
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